There are GIANT price increases being implemented on all new builds by all builders.
A few weeks ago, large lumber prices made the news and some builders reacted to the large jumps in price. Others absorbed the increases with the hope of the commodity price becoming less intense… so far this hasn’t happened which means prices will continue to go up steeply.
What’s the expectation? At the moment, the expectation is that there are still lots more coming.
Let me explain… for example, the price of OSB sheathing was $14.73 a sheet several weeks back and is now $33.45 today… that’s more than double!
Why is this important? The increase in price on wood affects every element required to build a new home or for any renovations.
As of right now, there have been increases of $10,000.00 on all homes that haven’t started construction or are currently under construction but haven't received their framing package.
So what does this all mean? It means that things could get really ugly for people who have homes under contract but not yet at the building stage.
So what’s the worst case scenario? At this point, some builders may have to go back to their Buyers to ask about increasing the price of the home and may even have to cancel contracts to rewrite them at the new higher price.