The Expert Podcast

…Certainly lumber prices are nowhere near the astronomical highs They were last year. But the. Temporary slowdown in building and higher interest rates. Is starting to have not much more effect on the prices In fact lumber prices had a little…pop in the numbers over the last week or so that went up about 10%. There's still a well under a thousand per thousand board feet. and they're in the five to 600 range, but. this. Decrease in value may be short-lived. And you're not going to see them down in the three or 400. dollar range as we did many years ago. Five to 600 is probably going to be the norm. In fact once the real estate market stabilizes in the next year or so they may pop back up into the six or 700 range. In reality as a builder. This is maybe an opportunity because the demand. For real estate market stabilizes and the next year or so they may pop back up into the six or 700 range. In reality as a builder. This is maybe an opportunity because the demand. For remodels additions and even new homes. It's still there There's people that are holding off because of the interest rates are higher and the prices are astronomical for resale homes. But building a new home right now. Still may be an opportunity for a builder. To realize a profit. The lumber prices are still low, although they're popping up a little bit. This 5 million. Potential homeowners that want to buy a house are still out there They couldn't buy a house in 2020 or 21 or 22. They still need a house to buy. They're starting to get used to the rates. Even at five or 6%, you know the mortgage. Payment on a house is still less than what most people would pay to rent…They're starting to get used to the rates each. at five or 6%. No the mortgage payment on a house is still less than what most people would pay to rent. And most people still have pretty good jobs so they can qualify for a mortgage. In two or three years the demand is even going to be worse There's not going to be that many new houses built because a lot of builders are pulling back. And there'll be even more people that need a house in the market. So lumber prices are just part of the equation. If you can put together the labor. And put together the capital to build a house. There may be opportunities. To put something on the ground. That the demand is going to exist for 1224 or 18 months down the road.