The Tri-Cities has been so fortunate to have escaped the housing bust throughout the nation, however, the large price jump for lumber is something we can’t avoid. The rising lumber costs equates to rising costs for builders and thus, rising housing costs. Lumber prices have doubled and then quadrupled over the last year which has been a shock for builders and contractors. With the lowering of production comes laying off of employers and eventually the closing of mills. As the housing market returns production is having a tough time keeping up.
All of this means higher home prices for buyers, at least for awhile. The local Home Builders Association believes that mid-summer the lumber prices will drop again which in turn should drop the home prices. There is, however, a gamble in waiting for the right home because if you wait for the lumber costs to go down, you might face higher interest rates as they slowly climb upward.