Here’s how lumber prices have been affecting the real estate market.
One of the most common questions I get is, “What’s up with lumber prices?”
The height of the lumber price bubble was last May when it cost $1,515 per thousand board feet. Right now, lumber prices are down 68% to $479 per thousand board feet. That’s actually lower than it was this time last year. The price probably would’ve fallen further if it weren’t for the wildfires in British Columbia. At 2:07 in the video, you can see a graph of lumber prices over the last year.
What does this mean to you as a homeowner? If you’re looking to build, I would wait another three to six months to see an actual price drop for a new-build home. If there’s more lumber supply, more homes will be built, and that could slow down the increasing home values across the country. If you’re looking to sell, it’s a very good time because demand is still much higher than supply.
If you have any questions, please call or text me at 480-227-2028.