ReCasa Financial Blog

As the price of lumber continues to rise, the cost of new builds also rises. According to CNBC, new construction homes are said to be around $36,000 higher than usual.  This increase may have homebuyers in the market for older homes with newer updates.  While the pandemic caused lumber production to slow, the demand did not. 

Many lumber producing companies have not caught back up to previous production levels.  Lumber is not the only construction material that has seen an increase in price.  Drywall and steel have also increased.  Many items are also on back order . The rise in material costs combined with the shortage of available product have increased construction timelines.  Even with low mortgage rates, homebuyers struggle to take on the increase in price and the time it takes to complete their new house.  

While there was a slight dip in the existing home sales in April, homes are still being purchased right when they hit the market.  NBC News reported, “According to Zillow, nearly half of the people who sold homes last month accepted an offer within a week.”