What effect will rising lumber prices and material delays have on your new home?
It's likely that you have seen national headlines talking about skyrocketing lumber prices and how that is adding $30,000 or more to the price of a new home. On top of that pricing issue, we are also seeing delays and shortages in the availability of supplies - everything from bricks to plumbing fixtures to appliances.
So what does this mean for the educated consumer who wants to either build a new home, or remodel their current home? Allow us to make a couple of comments/suggestions:
If you are thinking of a new home, do your homework. Finalize your plan, start working on your finish product selections and make sure that your bank is prepared with financing, or that your stockpile of cash is ready for this project. When you get a price from your builder, be prepared to act if it meets your budget - and your builder should be prepared to purchase your lumber right away to lock in the best pricing available.
Be prepared for delays, or to accept alternative products. If you have your heart set on a certain refrigerator, be prepared to wait for it to arrive. However, if you can identify a 2nd or 3rd acceptable option, it may help your project move along.
Don't forget the good things that are happening now. Namely, that interest rates continue to hover near historic lows. Even if the price of lumber is up, the offset of very low interest rates can offer you a lot of purchasing power for your project when borrowing. Also, if a remodel is in your future, the price of lumber will have a much lesser impact on your project - so it may be a good time to tackle it.
Commodities markets move daily and information in the industry updates regularly. If you have questions about your project and how it could be impacted by the price of lumber or the availability of materials, please contact us. We would appreciate the chance to be of service.