Lumber Prices Decreasing, Yet Building Costs Remain High
The price for lumber reached historic levels this year, accelerated by supply shortages and increased demand; however overall building costs remain high. Despite significant drops in framing lumber prices in recent months, building material prices have increased 19.4% during the past 12 months and 13% year to date, according to and article written by the National Association of Home Builders (NAHB).
So is now still a good time to buy new?
The answer is a still "YES"! With existing home inventory and mortgage rates low, right now is still a great time to buy or build a new home.
Many homebuilders also include what's called a 'Price Escalation Clause', which entitles them to raise the price of the home if factors like lumber increase after you sign the contract but before the material is ordered. Instead, we lock in your pricing the moment you sign a Build Agreement with us, so that you don't have to worry about anything other than planning and designing your home. A new Tim O'Brien Home offers you with the peace of mind knowing that you've made a sound investment for the future, regardless of current market conditions.
It's also important to keep in mind that there are still issues with supply chains across the industry, as well as labor shortages and other factors that may lead to a slower build time. That's why it's best to start planning your new home well in advance.
Finally, we have new homesites coming soon in desirable locations within the Milwaukee and Madison areas, such as Cedarburg, Sussex, and Middleton, so beginning to plan now will ensure that you're able to find the perfect spot for your new home.