Tuesday, August 3, 2021 / by Shane Kilby
We’ve been getting a lot of questions about lumber prices and why they’re skyrocketing, so today we’ll be taking a look at what exactly is going on.
The COVID-19 pandemic caused lumber plants to slow down production, which has caused a major disruption in the supply chain. Builders are still trying to construct homes, but high demand and low supply of lumber mean that costs shoot up quickly. It’s led to a $25,000 to $30,000 increase in the price of new home construction, but we believe this will change as lumber production picks back up.
Recently, there’s been a recent decrease in lumber costs due to increased production and the return of supply chains. Additionally, high prices caused demand to settle down a bit, so lumber costs will likely continue to fall back to a normal level.
Even with high lumber prices, our historically low interest rates make now a fantastic time to buy a home. If you’re ready to start your home search or if you have any questions about our market, feel free to reach out to me. I look forward to hearing from you soon.