Build Your Log Home NOW - and save $$

You probably have heard it before from one of our Log Home Building Consultants - "Now is the Time to Buy" or "It won't cost any less than today".  I'm sure there are those of you who thought it a marketing ploy or a way to stir up some business.  There are several of you who listened and have already made the commitment to build your dream log home either last or this year - and you'll be happy you did.

Although the housing industry has been hit hard by the recent downturn in the economy, the past few months have seen a turn towards the positive.  With this up tick in building permits, residential construction loan approvals and other new residential home building activities, the lumber yards and other building supply companies are starting to see shortages in inventory as well as an increase in pricing to replace their inventories.  The National Association of Home Builders (NAHB) reports that since October of 2012 the price for framing lumber (per 1000 board feet) has risen from $319 per thousand to over $400 per thousand in January 2013.  In addition the Wood Markets web page (www.woodmarkets.com) also is predicting an increase in lumber prices through 2015 due to several factors including the reduction of available lumber for production and the increase in demand. 

The re-building that is currently taking place in the Northeast due to Hurricane Sandy also places a heavy demand on framing lumber and other building materials that are in short supply making for higher prices.  With some lumber being in short supply already, the immediate need for building supplies to replace or repair damaged homes placed a burden on the supply chain causing some prices to increase already.  Remember Economics 101 - Supply and Demand?

We've also heard from several builders who will insert an "escalation clause" in their building contracts to take in to account the cost of materials from the date their contract is signed to the actual prices for materials on the date they are purchased.  In the past when building supply prices were volatile these escalation clauses were used quite often and in most cases were a permanent part of the contract.  So it should be something you could expect to see in a building contract this year.  Although this is a log cabin home blog for log home buyers, the same increases will be seen in all sectors of residential home construction (frame home, brick homes, modular, panelized, etc.) during 2013 and beyond. 

The purpose of the article is to educate and inform people who are looking to build this year of the possibilities in future pricing so they can plan and budget accordingly.  Better decisions are made with good and timely information.  If you want to do some investigating of your own, make a visit to your local lumber yard and ask what they are seeing as far a lumber prices are concerned and what they expect to happen in 2013.  While you're there also get an idea if other building supplies are expected to do the same (plumbing, electrical, flooring, etc.). 

Take all of this in consideration as you continue to plan and budget for your dream log home.  When you are ready to take the next step - give your Local Log Home Building Consultant a call and we'll be happy to help you get started!

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