Lumber Prices, New Homes, and You

The market has made an impressive recovery in the last fifteen years. Housing has been one of the biggest areas of rebound as more and more people are able to become homeowners for the first time. In the last year as the world has dealt with the catastrophic effects of the COVID-19 pandemic we all have seen industries as well as countries temporarily shut down to protect the health of others. As we celebrate vaccines and the reopening of businesses and the return to normalcy we are also seeing many unexpected shortages in the supply chain.

One of the biggest shortages that the market is seeing right now is directly connected to the housing market, lumber. As home building ramps back up to keep up with demand for homes, the current price of lumber will certainly impact the growing costs of new homes. The long shut down of sawmills due to covid has caused a huge shortage of finished lumber. This shortage is the primary reason that purchasers are seeing the huge prices they are and experiencing sticker shock at the lumber yard. This is not some incremental increase builders are experiencing, for those who are not familiar, the price of lumber is up over 100% from where it was a year ago. 

While supply chain shortages have been experienced with other products such as chicken, computer chips, and toilet paper; the lumber shortage was something that many insiders did not see coming. With lumber mills reopening, the supply shortage of finished lumber is not a problem that is going to go away soon. The future of lumber prices looks to remain high for sometime due to a nationwide shortage in truck drivers. With only 75% of the drivers needed, even though lumber is being produced, it is still not moving out to the markets as quickly as it should. This shortage of truck drivers is also a large part of what has driven up the cost of fuel in the last few months as well. 

So what does all of this information mean for you? Well, if you are building a new home expect that the prices are going to likely be much higher than you were originally quoted. If you were planning a remodel or the addition of a new deck, you may want to wait on those projects until next year when prices should be stabilized. The lack of lumber is affecting all businesses so you may even experience furniture and other home goods being back ordered or more expensive. Again, we recommend you be patient and understanding of the problem and expect longer wait times. Alternatively, you can get creative and repurpose and upcycle your existing furniture as much as possible. 

As we work to reopen and rebuild as a community it will take time for things to be back to the way they were one or two years ago. I am here to help you navigate through these new conditions and confusing times to ensure you know all you need to get you into the home of your dreams.