06/08/2021
🏡🌳 I'm sure you've been hearing people talk about the absurd price of lumber right now. Quite the hot topic for sure. But how exactly is the price of lumber affecting the already crazy housing market?
Around the start of the pandemic, most people were expecting a slump in the housing market because of the shutdowns, and a lot of sawmills across the country slowed production to brace for a potential downturn in the housing market.
However, with the new popularity of working from home and low interest rates, the downturn never came and the housing market has been more competitive than ever because of record low inventories.
So where does the price of lumber come in?
Well, with record low inventories of houses on the market, new construction has soared to the highest we've seen in the last 15 years as the market saw an under-building of new homes during this time after the crash of 2008.
With prices of lumber soaring up 500% to the price point it's at now, the cost of a new construction is up an average of $36,000!
With the cost of new construction up so much, and the housing inventory being at a record low, the laws of supply and demand are in full effect right now.
So what does this mean for you?
If you're looking to sell now is the time to do it. With home prices at an all time high, you probably have more equity in your home than you realize. There's been no better time to sell than there is right now.
And if you're worried about where you're going to go if you sell right now, there are still deals to be had.
That's why it helps to work with a professional who can help you navigate how to get the most out of your home right now and be able to find you the right place to transfer your investment into.
Want to find out more about how much you could get out of your home right now or have any thoughts on the market right now yourself?
Shoot me a message and let's connect! 🏡