Articles & News
Falling lumber prices are making home building more attractive
Prices on lumber have been dropping like a lumberjack’s latest work. Prices dramatically increased beginning in late spring of 2020, rising to an eventual peak in mid-April 2021 before beginning a rapid descent to very attractive prices today.
Pre-COVID prices for lumber, measured by 1,000 board feet, stood at roughly $440 in January 2020. With the onset of “safer at home” orders, mills scaled back production. In mid-April of 2020, those staying at home started home improvement projects, and in May of 2020, new home demand picked up as well. Those three events caused a huge low-supply, high-demand event for lumber creating intense upward price pressure.
This price pressure was so great that prices quadrupled to a peak of roughly $1,770 per 1,000 board feet in April of 2021*. Prices on many building projects skyrocketed as well. Finally, the mills have caught back up, and abundant supply has caused a rapid price decrease to a current level of $473 per 1,000 board feet. What went up definitely has come back down, FAST!
For those who heard about the higher lumber prices and thought about cancelling or deferring a project, this is great news. Lumber and wood products are the single biggest cost category for a typical residential home project. A decrease in this key-material cost means a decrease in your overall ticket price.
Huge cost benefit allows for larger homes
Lower lumber prices coupled with already very attractive interest rates give more buying power to those interested in a new home. National home building trends—especially in a COVID-era environment—have been toward larger homes with more outdoor living space built in more remote or non-urban locations. That trend has certainly proved true on Lake Martin.
We have seen an unprecedented number of new homes break ground here at Lake Martin. And recently, we have released new waterfront properties in The Willows and in The Ridge. For those wanting to be in a lake community without paying the waterfront land premium, we have a number of water-access properties as well.
If you want to take advantage of attractive pricing, interest rates, and location, please reach out to one of our Sales Executives at 256.215.7011 today. They will be happy to help you explore your options here at Russell Lands.
* Data accessed online on August 31, 2021, from https://tradingeconomics.com/commodity/lumber.