Pricing… what’s the forecast for 2018?

Many are asking us about where we see pricing headed in light of the major national market demands on supply. While we at Buffalo Modular Homes want to protect our customers as much as possible from price adjustments, there may, in fact, be some visible movement on pricing this summer. Of course, projects that are under contract will be guarded against price changes.

Below is a timely memo from one of our suppliers that does a good job in detailing some of the pricing factors the housing market is experiencing.

As always, we are here to serve our customers. We appreciate your trust and confidence and we look forward to providing you a high-quality home at a fair price!

regards,
Jeremy Bates, Sales Manager

May 17, 2018

RE: Price Adjustment

Dear Valued Customer,

As we are all aware the housing market in this country is on an upward trend. With the growth in the housing market, we’ve also seen the demand increase for materials needed to build our homes. That demand, coupled with numerous outside factors, has created a volatile materials market.

In fact, a study by the National Association of Home Builders shows that the increase in the cost of lumber alone has been enough to drive up the price of an average new singlefamily home by over $6,000 since the beginning of 2017.
Like lumber, the cost of OSB has risen 26% this year alone. Roofing, Gypsum and steel fasteners are on the rise which are the main reasons for this price increase.

Effective today we are announcing a 2-1/2% base and option increase to all homes. Homes currently in our backlog that are built and shipped to our current production levels will be honored with the current pricing.

Also, all orders submitted by end of business on May 31st will have current pricing honored. These homes must be built and shipped to our current production levels and if for any reason the home does not ship prior to July 27th the additional price adjustment will be added to the order.

As a team let’s all stay ahead of this issue and prepare ourselves and our customers for the path ahead. With this rate of material increase we expect to see more pricing moves later this summer. As always if you have any questions or concerns please don’t hesitate to call me or your sales representative.