Tampa, Florida 2021-02-22 16:52:36 –
Building industry groups across the country have appealed to President Joe Biden for soaring timber prices and threatened to delay construction projects across the country and raise prices for existing homes.
“The extreme rise in prices of all categories of timber in recent months has required contracts in the early stages of the pandemic to create essential space for patient care, social distance between workers and the general public. It caused difficulties for the traders. ” Stephen Thunder, CEO of a related general contractor in the United States, February 18 Letter to Biden.
According to the US Bureau of Labor Statistics, the price of softwood rose 73% last year. Producer price index.. Last week, commodities hit record highs and prices are expected to rise even higher. Industry expert. Last week the price was $ 1,000 per 1000 board feet. For comparison, the June 2020 price was just below $ 500 per 1,000 board feet.
According to AGC, contractors are still seeing the impact of former President Donald Trump’s tariffs of up to 24% on timber imports from Canada. In addition to the pandemic outage and the resulting slowdown in production, a catastrophic wildfire in the west last year reduced the supply of available American timber.
Contractors say they are dealing with metals as well as rising timber costs.The· Producer price index Shows that the price of steel scrap rose 50.8% last year.
“Unchecked, rising prices for these materials can undermine economic recovery by increasing the cost of infrastructure and economic development projects.” Sandherr wrote.
According to National, these higher costs add more than $ 20,000 to the average new home price. Homebuilders Association..
Increased costs of building a new home can affect the price of an existing home.People National Association of Realtors The average national selling price of existing homes reported last week was 14.1% higher than it was a year ago and is now around $ 304,000.
Price of lumber hits record high, threatening construction timelines and home sales Source link Price of lumber hits record high, threatening construction timelines and home sales