It’s a rocket, what an unbelievable rise this year! It is built on already high prices of the last 2 years, thanks mainly to Trumps misguided tariffs on Canadian lumber.
The prices on softwood lumber imports skyrocketed after the 2017 hurricane season and were up 30% from the four months leading to January 2018. By April 6, the Random Lengths Framing Lumber Composite price hit $492, up from $414 a year earlier.
A study by NAHB economists shows that the increase in the cost of lumber since the beginning of 2017 has been enough to drive up the price of an average new single-family home by $6,388, and the market value of an average new multifamily housing unit by $2,430.
The study also shows that while they were designed to boost employment in the U.S., the tariffs on Canadian softwood lumber will instead result in the net loss of 9,370 jobs in 2018.
Meanwhile the public believes home price only goes up! It sure looks like a 2003 repeat.
First-time buyers, with zero equity stored in another home, are confronted with the toughest hurdle even though they’re in the minority of buyers. According to the National Association of Realtors, first-time buyers were involved in 30% of home sales in March, down from 32% a year ago.