On July 16, lumber was $481.90 per 1,000 board feet. In the three-week period ending July 2, prices climbed by roughly 28%. Lumber futures gained 56.5% in the second quarter, following a loss of more than 31% in the first quarter. This led to an increase in lumber prices of nearly 60% in the second quarter. The other was that folks stuck at home during quarantine were tackling home projects they had long avoided. One was a quick decline in lumber production on the part of sawmills. says there are a couple of reasons for this high demand. As people pretty quickly realized, there was no real need for construction to shut down, and building activity resumed, but inventories were already low and demand was high. That left lumberyards with wood they couldn’t sell. That was because at first, there was no construction going on-businesses everywhere, including the residential construction sector, had ground to a complete halt. The NAHB indicated that when the coronavirus pandemic began, lumber prices slumped. “When you consider downsizing your heating and cooling system which you can do with ICF, that gives you energy savings, and masonry structures typically get a break on insurance in our area, so that adds up to be about the same.” “Building with ICFs in our area typically costs $3 to $4 more per square foot than a lumber home, so if the price of lumber goes up $5000 then that means ICF is only $1000 to $3000 more,” Ballew says. ICF Warehouse is the largest ICF distributor in New Mexico. John Ballew, president of ICF Warehouse in Santa Fe, New Mexico, says he’s been selling ICF for 20 years and in the concrete industry for 40 years, and he saw the price of lumber starting to go up even before the press releases started hitting people’s mailboxes. Building with ICFs could cure both of those headaches for homebuyers. if lumber is more expensive and harder to get, that increases the cost of a stick-built home by thousands of dollars, and it potentially makes the build take a lot longer. But with this press release, it became clear that not only has lumber gotten more expensive, it’s gotten harder to find.Īll of this means ICF homebuilders have yet another tool at their disposal for selling ICF homes to potential homebuyers. They just had a general sense of how the market was changing. Contractors had mentioned that lumber prices were going up, at least since the beginning of the pandemic issues, but before this press release came out, none of the ones I talked with could provide hard data. Today, in late November, that’s down to about 120%. At that time, lumber prices had skyrocketed 160% since April. In July 2020, the National Association of Home Builders (NAHB) sent out a press release that spoke about how much more expensive lumber has gotten since the beginning of the year.
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