New homes growing more expensive as lumber prices skyrocket

New homes growing more expensive as lumber prices skyrocket

New homes growing more expensive as lumber prices skyrocket
Those looking to purchase a newly constructed home should be prepared to pay a premium. According to a new report from the National Association of Home Builders, record-breaking prices for the cost of lumber has driven the cost of new home construction to new heights and builders are passing this cost along to buyers.

Increases in lumber prices have added an average of $35,872 to the price of a newly constructed single-family home, according to the NAHB. Lumber costs have shot up 340 percent over the last year.

Despite the rising costs to build and buy a new home, construction companies are capitalizing on the high demand. Single-family housing starts jumped 41 percent in March from a year earlier.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.