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Lumber Prices are Soaring: What It Means to Home Prices - Jeff Brand Team

Jeff Brand Team - The Real Estate Experts

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Lumber Prices are Soaring: What It Means to Home Prices

posted by: Jeff Brand in Blog

As you well know, the housing market in Dallas-Fort Worth – and even most parts of the United States – is booming. Homes are selling fast, and the prices are rising every year. We’ve seen a steady increase in home prices with little end in sight.

And here’s yet another factor to consider: lumber prices.

The National Association of Home Builders (NAHB) reports that the new home market has been very strong, with builders having a hard time keeping up with demand in hot markets like Flower Mound, Plano, Allen, Frisco, and other Dallas suburbs.

But just recently, we’re not only seeing a shortage in new homes available because demand can’t keep up, but we’re also seeing a shortage in lumber.

And with a shortage in lumber, comes higher home prices.

Economists predict that these rising lumber prices will be passed on to the homebuyer, causing further price increases to an already elevated market. Nearly half the builders in a May NAHB survey reported issues getting enough lumber for their current home building projects. These shortages are comparable to what was seen during the building boom of ’06-’08.

Another reason for the increase in lumber prices? A proposed 24% tariff on lumber from Canada by the Trump administration. While not yet in place, a tariff of this magnitude could further raise prices here in the United States as supply weakens even more. Builders are reporting the possibility of a tariff is already affecting prices and compounding the issue.

Jeff Brand & Associates is your real estate expert in Flower Mound, Lewisville, Highland Village, and Lantana. We have a pulse on what’s going on here, in the surrounding communities, and nationwide. If you’re ready to buy or sell a home, trust Jeff Brand for knowledge and experience that will get you the house of your dreams!

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