New homes are expensive due to lumber shortages but supply is increasing.
Have you gone to Lowe’s or Home Depot lately and tried to buy a 2x4 or piece of plywood? The prices are crazy! Fortunately, we’re starting to see those prices stabilize and even come down a little bit. Let’s analyze what this has done to the housing market.
Because of the price of lumber, builders are having a hard time sticking to the price they quote upfront. When building a house nowadays, builders often add about $24,000 to $30,000 to the build simply due to the price of materials. However, it’s helped the existing resale market. Instead of building, many people are trying to find a house that is a good fit for them or something they only need to touch up.
Lumber mills are catching up with the demand, so prices should start to stabilize. The increase will also relieve some of the issues that builders are facing. It will also make it easier for homeowners to repair and prepare their homes for resale.
Whether you’re looking to buy or sell a property, this is still a great market. If you have any questions, please give us a call at 800-722-2585.