When the corona-virus began, lumber prices slumped. Construction activity had slowed to a halt, leaving mills with excess supply. Home construction has rebounded with a bang and the mills are now playing catch up. In addition several other factors have come into play to drive wood prices higher.
- An increase in residential construction including do-it-yourself projects like decks.
- Low mortgage rates that spurred residential construction and remodeling.
- The construction of outdoor seating and dining areas for restaurants across the country.
The result is that lumber costs are up 111% year over year. Thus, new home construction costs are rising and as new home prices rise, this will cause existing home prices to increase too. Now is a great time to cash in on those remodels and home extensions. Call me 720-307-5280
Photo by Anders Vestergaard Jensen on Unsplash