Home prices are soaring, pushed higher by a combination of record-low mortgage rates, strong demand from buyers and a lingering lack of new construction.
For 2021, add another wrinkle: Lumber prices have jumped to new highs. Lumber costs soared more than 30 percent this year, and theyâve nearly tripled since last springâs deep downturn in economic activity.
The National Association of Home Builders says skyrocketing lumber prices are tacking thousands of dollars onto the cost of a new home, an unwelcome increase for buyers already struggling to find homes they can afford. The trade group has lobbied President Joe Biden and Congress to end tariffs on Canadian wood sent to the United States.