The Cost of Lumber | Monday Minute

With inflation rising and building costs at an all time high, many buyers are weighing the option on whether to build new or purchase resale.  With lumber and steel prices where they are currently, many buyers may be priced out of buying new.Recently the price of lumber has started to come down (dropping by more than 40% over the past couple months), but consumers have not realized the savings yet.  Experts say that this still may take time before home prices start seeing price reductions.  But why is that?Well, while lumber may be less expensive to buy today than just a couple months ago, it is still significantly more expensive than a year ago and ultimately still a challenge to get supplies.  These shortages create delays and increase the costs on the builder’s end, which in turn costs buyers more money.  The most frustrating aspect of all of this is that builders are unable to get accurate cost estimates and many buyers are entering into contracts not fully knowing how much the total build may cost.  So should you buy a new home right now?  If your budget allows, buying new construction definitely has its benefits.  The ability to customize the home to fit your particular needs and wants is absolutely a big plus over buying a resale that you can make work.  Another huge benefit is that with a new home, you likely won’t have to worry about costly repairs for some time as you have warranties covering most aspects of the home, from the roof all the way down to the appliances.And with interest rates as low as they are you are able to lock into a great rate and will help offset some of the higher costs vs waiting for the prices of material to go down but then most likely seeing a higher interest rate by then.If you are interested in building a new home and want to learn how to get started, give us a call today.  We look forward to helping you!