How Supply Chain Disruptions Are Affecting Home Prices
Q: My wife and I bought kitchen appliances and have to wait more than 6 weeks for them to be delivered, I assume because of the pandemic. Is there a way to get appliances faster? Brad, Watchung, NJ
A: Real estate is one of many industries that have been affected by supply chain disruptions caused by the pandemic. Many appliance manufacturers have maintained lean inventories for a long time to minimize costs, so recent supply chain disruptions caused by the pandemic have made it difficult for them to keep up with recent increased demand. In addition, manufacturers and suppliers are operating with COVID-19 safety protocols that slow production. Independent appliance dealers are often faster and more reliable now during the pandemic than big box websites because they typically don’t depend on third-party delivery services. Increased waiting times for appliances and building materials increases the time it takes for home builders and rehabbers to finish projects and get homes on the market to sell which reduces available home supply further and in turn increases home prices even more. Thanks for your question, Brad.
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