At LaBram Homes, we believe it is important to be transparent with our customers so that you have realistic expectations about what your home will cost and when it will be completed. You might already be aware that in our current environment, it is taking longer to build homes and prices are continuing to rise. In this article, we will look at the factors causing this situation, and what you should expect if you plan on building right now. You will also understand why, despite these factors, you shouldn’t be discouraged when you have LaBram Homes on your side.
Lumber prices are up, which means so are home builds
When COVID-19 hit in early 2020, lumber suppliers expected a major downturn in the demand for new homes. Fearing a slump, they responded by shutting down or restricting their operations. Some even went out of business, especially as employees were forced out of the workplace because of the pandemic. But the housing market was resilient, which meant there wasn’t enough lumber to meet the demand for new projects. That combination of shortage and high demand has driven up prices of lumber needed for custom homes as well as renovations and additions.
Plus, the pandemic caused a labor shortage across the supply chain. Lumber mills did not have the workforce to keep up with red-hot demand. As a result, many people are spending more now to build their home. Those who want to wait out the price surge may spend less, but the tradeoff is a longer wait time for their new home to start construction.
As the supply ramps up and companies hire willing workers, we expect lumber prices will go back down.
How LaBram Homes is responding
In the face of these rising prices and longer lead times, we are being proactive. Some of the steps we are taking include:
- Working with our customers and the banks to get items needed for the home on order sooner to stay ahead of the longer lead times.
- Continually monitoring prices to determine when to lock in pricing for our customers.
- Constant communication with our customers on market conditions.
While you should expect to spend more than you would have before the pandemic, you are still going to have a custom home that no existing property can match.
LaBram Homes’ promise
We’ve shared this information with you because we want you to be fully aware of market pressures. Not every home builder is as transparent and up front. We’ve heard the stories of home builders abruptly canceling contracts because their own costs went up as a result of material shortages. This is a bad business practice.
We communicate with our customers on a regular basis to keep them informed.
If you are wondering whether to pause your dream home until lumber prices come down, contact us and let’s have a conversation to see what is right for you.