Rising Lumber Costs May Drive New Home Prices Higher


Rising Lumber Costs May Drive New Home Prices Higher
By Scott Rogers • March 5, 2018
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? Wildfires in Canada in July 2017 started to restrict the supply of lumber. A trade dispute between the U.S. and Canada further restricted supply. A shortage of railcars and trucks had made it more expensive to transport lumber. 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! Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 24, 2024 (unless otherwise noted).
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