Rising Lumber Costs May Drive New Home Prices Higher

Wood is just one component of a new home -- but it is a rather central component, and increases in the price of lumber can and will eventually impact the prices of new homes in our local market. 

Just how much have lumber prices increased?  Try more than 50% over the past 14 months!  The chart above shows the increases over the past year from below $350 (per 1000 board feet) a year ago to over $500 today.

Why have lumber prices been increasing?

1. Wildfires in Canada in July 2017 started to restrict the supply of lumber.
    
2. A trade dispute between the U.S. and Canada further restricted supply.
    
3. A shortage of railcars and trucks had made it more expensive to transport lumber.
    
4. The new home market is heating up, increasing the demand for lumber.

Read more about rising lumber prices at the Wall Street Journal....

With Lumber in Short Supply, Record Wood Costs Are Set to Juice Home Prices

Only time will tell how much these increases in lumber costs will affect new home pricing in this area.  Stay tuned!