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Housing Market Is Days Away From a Major Disruption

May housing starts swell as builders respond to strong demand

Housing starts surprisingly rose in May by the most since 2016. And permit applications also increased, a sign that builders are responding to strong consumer demand.

James D Carter, 92, of Williamsburg | Williamsburg Yorktown Daily

James D Carter, 92, of Williamsburg | Williamsburg Yorktown Daily
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Weary home shoppers are giving up, waiting for the market to cool

Weary home shoppers are giving up, waiting for the market to cool
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Get Paid While You Wait: 3 Top Dividend Stocks in Lumber

May 31, 2021 at 8:20AM Follow @jimhalley The cost of lumber has increased 300% over the past 12 months, according to National Home Builder Association statistics. The reason is simple economics increased demand and limited supply. When the pandemic first began, home construction came to a standstill and a lot of sawmills and lumber processing facilities shut down. Then, the boom in remodeling and home building started early last summer and the mills went from having too much wood to not enough very quickly. The demand has shown no sign of ebbing and trees take time to grow, so the supply side will keep lumber costs high for a while. Another reason why lumber supplies are down is that mills can t keep up with processing the wood that is being felled. On top of that, the rise in lumber costs may likely rise because the U.S. Commerce Department last week said it would like to increase tariffs on Canadian lumber from 9% to 18.32%.

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