Sometimes the hardest part about building a house is actually taking the plunge. So often people want to build a house, in fact they DREAM of building a house, but they end up delaying that dream for one reason or another. Unfortunately, that can actually end up costing you dearly! We have a prime example of that happening right now. If you’re currently thinking about building a new home, you really need to know what’s going on with lumber prices.
One of the biggest material costs for any new home building project is lumber. The lumber needs just to frame a house usually costs tens of thousands of dollars. Not to mention all the other products in your new home. Therefore, the price of lumber is critical to the overall cost of your housing project. Anything you can do to keep the cost of lumber down will end up saving you thousands of dollars on your new custom home.
According to the latest data put out by the National Association of Home Builders (NAHB), since January 1, 2017, the cost for framing lumber has skyrocketed a whopping fifteen percent! This is a huge increase in only two months. In fact, it’s a price increase unlike anything seen in years! Worse yet, it’s predicted that lumber pricing will keep rising for the foreseeable future.
The NAHB closely monitors the price of all building materials, so you can trust their data and predictions. According to the Producer Price Index (PPI), important statistics put out by the United States Bureau of Labor Statistics, the largest one month increase in softwood lumber since 2014 was 2.6 percent. While this is a sharp increase, it is predicted that softwood lumber will rise more, possibly much more. Why is this happening? It’s because of a trade agreement with Canada that expired right at the end of 2016.
While we don’t know yet just how much higher softwood lumber prices will go, we’re almost certain they will increase substantially more than they have for the last several years. It’s somewhat unpredictable because there has been a long running dispute between Canada and the United States over lumber imports. Analysts aren’t sure if and how this will change with the new administration. But uncertainty is never a good variable in the pricing of lumber, as this will usually make the price go up more.
Bottom line is, if you know for sure you want to build a house, we strongly encourage you to start building now before lumber prices increase further — in fact, ASAP! This is not the time to let little things cause you to procrastinate because it could cost you a small fortune. Furthermore, if you buy your housing materials now and the pricing materials continue to rise quickly, as predicted, the value of your home could increase in value before you even move in – that’s money in the bank! Seize the day! Buy now!
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