Rising Lumber Costs – What To Expect

You don’t know what you have until it’s gone. In this case – lumber.

This past year has tested our instincts to adapt to a new world of social and professional living. Americans have been forced to use their houses more, creating a perfect storm of home improvements and thoughts of finding a new home that fits all their needs. There is no doubt that families had to get cleaver with creating at home offices and dedicated spaces for their children to do schoolwork at the same time. 

The housing market has pushed lumber prices to more than double the cost of a 2×4 a year ago. Manufactures are trying to keep up with the demand but they have run into issues due to the coronavirus. After last years closure, not all employees returned to work creating a shortage in labor workers. 

It’s a sellers market – competition to buy a home in Colorado is fierce. There are more people who want to purchase a property than there are home on the market. With dwindling supply, bidding wars and all-cash offers are very common. Some families have decided to skip the competition and build new and we don’t blame them. However, expect to pay at an additional cost. According to the National Association of Homebuilders, the average additional price of a new single family home is more than $35,000. For some, that additional cost outweighs the headache of dealing with multiple offers on an existing home.

There are so many amazing new communities being built as we speak and you just have to see them for yourselves. Reach out to us at 720.897.8100 or email Andrew.Arevalo@compass.com to discuss which home buying option is best for you and your family.