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With Rising Lumber Prices, Is Now a Good Time to Build?


If you are in the market for a new home, you may want to close the deal sooner rather than later.  Construction costs are soaring and appear only to be going higher.  Lumber prices hit $1000 per thousand board feet, an all-time high in recent weeks, and has risen more than 300% since the pandemic low last spring.  

Paul Jannke, Forest Economic Advisors LLC.'s principal of lumber said, “Production is going to have a hard time keeping up with demand growth as the world economy bounces back from Covid-19 in 2021-22.”  So how much are these rising costs adding to a new home’s construction cost?  The National Association of Home Builders estimates rising lumber prices have added a stunning $24,400 to the cost of a home over the past ten months.  Now don’t forget to add in the rising price of copper, which has gone up 87% in the trailing year…well, you get the picture. (Chart from zerohedge.com)


Best regards, 

Womack Investment Advisers, Inc.

 

WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK  73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717 

 Website:  www.womackadvisers.com

Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in sates where it is properly registered, or excluded, or exempted from registration requirements.

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