Prices for lumber in the recent months have been volatile and the effects of its prices are reaching both homeowners and builders alike. Not only lumber but other materials as well have been increasingly difficult to manage when it comes to cost. Still, the price of lumber has been a telltale sign of inflation of costs and supply of building materials across the industry. Fortunately, Lumber prices have been falling again.
The price of lumber dropped to $829 per thousand board feet of the board last Tuesday. Reaching this point marks the lowest the commodity has had this year so far. If you are familiar with the problem of lumber costs, you are probably reminded of when lumber prices reached $1,733 per thousand board feet back in May of 2021.
Why are lumber prices falling?
It seems the initial storm of cause and effect is subsiding allowing industries and market participants to finally catch their breath. According to Axios, supply, demand, and production all gained some footing in quelling the frenzy of the construction industry. The lumber industry is organizing further each day, strengthening its ability to respond to incoming demand. Increased staffing, more trucking, more trains, and more shipping are aiding in the supply chains across the U.S. While on the demand side of things, 54% of home builders said higher mortgage rates are impacting their business. This means with the increased rates on mortgages are dissuading some potential homebuyers and those who are looking to build a home.
Should you rush to start construction?
In short, no. There is no real urgency when deciding on the time to begin your construction project and hiring a general contractor or design-build firm. While the rising mortgage rates and inflation are beginning to scare off homebuyers, the drops in lumber prices and possibly other building materials can be a great benefit to builders and construction companies. This may translate into savings for clients, homeowners, etc. who are looking to build a custom home or build an addition or remodel. But the timing really comes down to each individuals capacity and readiness.
Regardless of market conditions, starting a construction project on your home sooner rather than later is always recommended as no one can truly determine material costs in the future. Hiring the right General Contractor or Design Build company can find ways to make sure material costs won’t reach deal-breaking levels. Sustainable Design Build, like many other reputable builders, work in special contingencies and even clauses for projects to make sure clients are protected from volatility. All in all, homeowners and custom home hopefuls should not feel any pressure to lockdown a project and should take their time focusing on who they are going to work with on their project. For more information about SDB’s process or to get a free estimate on your future construction project feel free to reach out any time.
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