The lumber industry experienced an unexpected boom with the huge drop in prices of some products such as oil. Although lumber prices slumped immediately after lockdowns, the sector gained right away once the demand caused by the remodeling bonanza started. Stay-at-home orders and movement restrictions meant that people were staying indoors for long while others sought refuge in some remote hideouts especially in areas where restrictions were not stringent.
Lumber prices have been soaring because homeowners embarked on remodeling and renovation. Wood supplies were at their lowest following the closure of sawmills. When the housing market peaked and restaurants started to build outdoor structures, lumber industry started ramping up its capacity but it could not meet the demand. By the time summer was hitting, lumber was one of the most sought-after commodities and its prices were shooting over the roof.
This trend has continued; lumber futures have been trading around $ 1450/1000 board feet in May, and this is expected to rise even higher. Sawmills are striving to keep pace with the demand from homeowners and builders. The stay-at-home lifestyle and the lessons that people have learned encourage many to renovate, expand, or remodel an existing building. The record-low mortgages have also exacerbated the home-building spree.
General Market Outlook
So, what does this situation mean for homebuyers who are looking to buy land and build? At present, land investment in Western North Carolina is a worthy decision. With the housing markets getting leaner, homebuyers are turning to new construction. However, home prices are higher now than they were ever before.
Land sales in Western North Carolina are expected to keep on rising; thus, earlier entrants will gain. Waiting too long will be a disadvantage as the land and farm sales are not coming down any time soon.
If you are looking forward to owning a home and avoid soaring prices, now is the time to get your piece of land in Western North Carolina. You will get a rural property now at a good price compared to waiting for a long while anticipating a fall in demand.
Call LandCrazy Experts
As land brokers and experts, we conclude from the current market trend that prices may even rise further, making it expensive to buy in the future. Landcrazy.com will guide you through the process. We are always set to discover something new about Western North Carolina, and as region experts, we can be relied on for all your land and rural property investment.