Here’s how lumber prices rose so quickly and how that affected our market.
“What’s going on with lumber prices, and how does that affect our market?” I get asked this question a lot, so I thought I’d put together a quick video to share what I know about the topic:
Over the last year, lumber prices have practically tripled because of COVID. If you’ve been to Home Depot, you’ve probably had some sticker shock. That price hike adds anywhere from $24,000 to $30,000 to the cost of a new home. In some ways, this helps the existing market because buyers have to weigh between building a new home or buying an existing one.
The lumber mills shut down during COVID with a lot of unfulfilled orders. This created a massive shortage, but the good news is that the lumber supply is picking back up. That’s not the only good news; interest rates are still low, which helps offset the construction costs and keeps homes affordable.
If you or anyone you know is looking to sell a home, send them my way. We’re getting great prices for homes right now, so if you have any real estate questions, give me a call. I’d be happy to help.