Thinking of building a new home soon? As you start planning, prepare yourself to get smacked in the head by a two-by-four once you catch the price of lumber these days.

Yep, lumber costs are on the rise! As is the cost of many other building materials thanks to increased demand and supply constraints. Just another little side benefit of the COVID-19 pandemic.

Dakota News Now reports the rising costs have led to a number of new home contracts being canceled.

Despite the bad news on boards and building materials, the construction craze is still a booming business in many cases.

Dana Iverson, the Sales Manager of the lumber division for Allied Midwest Merchandisers told Dakota News Now, “The industry just has not had time to catch up. You know, we had the COVID-related items, some shutdowns were seen there. Still, supply site has been very tight and the housing and construction boom has just not let up at all."

Lumber delays and labor shortages are also contributing to the current problem.

Iverson was forced to order materials late last year, which he says should show up sometime during the second quarter of this year.

Dakota News Now found out from the National Association of Home Builders that a spike of nearly $24,000 dollars has been seen in the cost of an average new single-family home since April of 2020, thanks to the increase in lumber prices.

Homebuilders Association of the Sioux Empire President Tom Jarding told Dakota News Now, don't let the rising costs stop you from wanting to purchase a new home. Interest rates are still at historic low levels, and the increase in lumber and building material costs can be spread out over your mortgage.

According to Jarding, the increase is about $100 more a month over a 30-year mortgage in most cases.

Hopefully, relief will be on the way soon, as the National Home Builders Association is investigating ways to solve the current lumber crisis by reaching out to Congress for help.

Until a solution can be found, the best advice the National Home Builders Association has for people thinking of building right now is to be patient and plan ahead on your project. Because chances are, you'll probably encounter a few delays along the way.

Source: Dakota News Now

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