COLUMBUS (WCMH) — The bubble has burst.
Lumber prices are finally coming back down to earth, after a spring where they doubled, then doubled again.
Lumber futures dove more than 40% in the past month, as demand dried up for $50 and $60 sheets of plywood, which just last year were $20 each.
Homebuilders like Brad Olinger had to tell customers the price of their new home would be going up by $30,000, just because of wood prices.
“Some lumber items were purchase were $400 dollars a year ago, and now its up to $1,200 so it is 3 times the cost,” he said.
But now he and home rehabbers are getting a break, as lumber is now a bit more affordable again.
But from the “doesn’t that stink” file, why you shouldn’t expect a dramatic drop in the price of a new home.
Other prices, from drywall to copper and steel remain near all-time highs, meaning the cost of construction is still higher than it was a year ago.
And that stinks.
But with Americans now traveling again — instead of just working on their homes — builders are hopeful that decreased demand will finally mean lower prices for construction.
While this won’t reduce existing home prices, it should finally offer new home buyers a bit of a break, so you don’t waste your money.
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