Today I’m answering the question, “What’s going on with the cost of building materials, especially lumber?” Manufacturers were already behind due to the pandemic forcing many plants to run at very low output levels or even shut down for extended periods. This led to further shortages for local supply chains. So local suppliers are unable to quote an exact price for those materials. Price quotes could take up to six weeks.
As an example, a builder who ordered lumber in December received it in mid-February after the price had gone up by 166%. For a 2,000-square-foot home, this added an extra $8,000 to the bill just to frame the home. That doesn’t include costs associated with other wood products for things like cabinets, trim, doors, etc.
“Price quotes could take up to six weeks.”
Manufacturers are already working to catch up. We’ve started to see price corrections over the past few months. The builder you choose to work with should have a great relationship with their suppliers. You want a builder who will watch these trends and order supplies at the correct time.
If you’re looking to build a new home or have other real estate-related questions, please reach out to us. We’re happy to help you.
