FORT WORTH (CBSDFW.COM) – The historic skyrocketing price of lumber may have peaked, but it may still take some time before the cheaper prices are seen, according to homebuilders.
In some case lumber was reported to be up to 400%.
Pandemic woes associated with production and supply chain problems, as well as tariffs on out-of-country lumber supply, are all said to play a role in this trend according to Phil Crone, the Executive Director of the Dallas Builders Association.
Crone said lumber futures are about 15% to 20% below the peak, but it’s still not enough to feel much relief from the surge in price.
“It’s still adding upwards of $24,000 to the price of a new house when you look at where we were say in April of last year,” he said. “It’s a little bit better than where we were but we are still at a very high elevation and it’s a big challenge for this market in particular where we have relied on affordability and access to housing more so than more coastal market. This impacts us more proportional in the DFW market than other parts of the country.”
It’s not all doom though, as Crone adds at least the lower prices are heading back down again.
“It’s a leading indicator and definitely a sign that things are going to improve, but it’s going to take a little more time to see meaningful improvement,” said Crone.
As to how much longer it could take?
“My guess is around the October time frame, once we get through the summer buying and moving season.”