I never thought I’d be checking lumber prices on a daily basis! Will lumber prices come down soon? I sure hope so.
To be frank, I thought my house would be framed by now but the building process has not even started. All the permits are approved, the electricity has been pulled but that’s it. Why? The price of lumber!
A couple of weeks ago, when I thought the new build would begin any day, we received a call from our general contractor. It wasn’t good.
The price of lumber has skyrocketed in the last few months and at current prices, this spike will add $35,000.00 to the price of our house.
I won’t sugar-coat it. My first thoughts were, “You’re a builder. Did you not know that prices had increased? I knew it and I’m not a builder.” My second thought was, “Seems like a personal problem to me. It’s a good thing we have a signed contract.”
The Rise In Lumber Prices
But then, as I prayed about the situation (yes, I prayed about it), I realized our contractor was not trying to pull one over on us. He’s a really nice guy.
According to the National Association of Home Builders, U.S. lumber prices rose 170% from April to an all-time high in August. So far, September lumber prices are down very slightly. They need to come way down!
What Caused The Rise Of Lumber Prices?
Well, it’s 2020. That says it all, but we will dig a little deeper. In March and April, when COVID-19 hit, lumber houses, like other businesses, closed down completely or slowed the lumber production. Construction projects were postponed or canceled and the demand for lumber went down. Prices dropped.
Then, homeowners were stuck at home during the lockdown. Many of them looked around and realized it was the perfect time to start DIY projects liking adding that deck, building that fence, etc. However, lumber companies had slowed or stopped production altogether.
Construction activity also resumed, but the drop in production has created a shortage. That resulted in prices of lumber skyrocketing.
It all boils down to supply and demand.
Lumber Prices Need To Come Down
My husband and I do not want to pay out another $30-35,000 on our new build. Yikes! So our contractor is waiting and watching for a couple of weeks, hoping that prices will drop.
Meanwhile, I’m over here praying that prices are about to start dropping. I’m checking the prices every morning. A good friend in the lumber industry is keeping us updated as well.
At this point, I’ve learned way more than I ever wanted to know about the price of lumber.
When we started our quest to build a new home almost two years ago (time does fly!) with the hunt for a house plan, we had no way of knowing what 2020 would hold.
The one thing I do know is that all is well! That’s my mantra throughout this building process. All is well.