Home builders

Fluctuating lumber prices impact builders and new home buyers

Soaring lumber prices are making building homes more expensive. KMBC 9 spoke with a Kansas City metro builder who says the cost of a home can fluctuate by tens of thousands of dollars, depending on lumber prices. We discovered its impact on builders and buyers. Determining how much lumber will cost to build a house is not an easy task. “It’s an ever-changing target, changing every week,” said Mike Watson, operations manager for Newmark Homes in Kansas City. He says rising timber prices may complicate construction. “We will see an increase of double or more and then it will come back to normal two weeks later,” he said. “It’s really unpredictable right now.” Watson says the fluctuating cost makes it difficult to give customers a firm price. “Unfortunately, it’s not something we lock in at contract time. Pricing is based on when it’s actually delivered to the site,” he explained. He says that in some cases the The cost of a house can increase by tens of thousands of dollars by the time the work is completed.”These prices can range from nothing to over $50,000, depending on the time and the size of the house,” he said. he said. For some buyers, that’s a deal-breaker. “We had to have this uncomfortable conversation more than we wanted to,” Watson said, “but some people decided to just back off.” He says the company tries to reduce the impact on the buyer as much as possible. “We absorb everything we can, but at some point you have to decide whether we are building houses for free or for a living? he said. ” Obviously we’re also taking a financial loss.” Watson says that despite the rise cost, the homebuilding market is holding up. If you’re thinking about building, he recommends, “go with an open mind. Be patient with your builder. Due to supply chain issues and labor shortages, Watson says building a new home will not only cost more, but also take longer. Instead of 6 to 8 months, it now takes about 14 months to build a house.

Soaring lumber prices are making building homes more expensive. KMBC 9 spoke with a Kansas City metro builder who says the cost of a home can fluctuate by tens of thousands of dollars, depending on lumber prices. We discovered its impact on builders and buyers.

Determining how much lumber will cost to build a house is not an easy task.

“It’s an ever-changing target, changing every week,” said Mike Watson, operations manager for Newmark Homes in Kansas City.

He says rising timber prices may complicate construction. “We will see an increase of double or more and then it will come back to normal two weeks later,” he said. “It’s really unpredictable right now.”

Watson says the fluctuating cost makes it difficult to give customers a firm price. “Unfortunately, it’s not something we lock in at contract time. Pricing is based on when it’s actually delivered to site,” he explained.

He says that in some cases, the cost of a home can increase by tens of thousands of dollars by the time the job is done. “These prices can range from nothing to over $50,000, depending on the time and the size of the house,” he said.

For some buyers, this is a deciding factor. “We must have had this uncomfortable conversation more than we wanted to,” Watson said, “but some people decided to just back off.”

He says the company tries to reduce the impact on the buyer as much as possible. “We absorb everything we can, but at some point you have to decide whether we’re building houses for free or for a living?” he said. “Obviously we are also suffering a financial loss.”

According to Watson, despite rising costs, the homebuilding market is holding up. If you’re thinking about building, he recommends, “go with an open mind. Be patient with your builder.

Due to supply chain issues and labor shortages, Watson says building a new home will not only cost more, but also take longer. Instead of 6 to 8 months, it now takes about 14 months to build a house.