Yesterday we touched on two major forces that are about to impact the cost of building products significantly.
We talked about International Trade issues between The United States and Canada. It seems as though the lumber price and import duty problems have been a dispute since 1982. Back then we imported almost $6 billion in lumber from Canada and the vast majority of that went to residential housing.
Most of the U.S. lumber industry is owned by private companies and corporations whereas most of the Canadian lumber industry is owned by the government and our companies loudly complain that they are left at a disadvantage that ranges between 3% and as high as 24%. Needless to say Canada vociferously disagrees and of course the international concerns are even more confusing because Canada disagrees with our dairy export policies.
All this can and will gravely impact the cost of a single-family home and cause prices to jump upward in the 5% range. Let’s face it when we are buying a loaf of bread a 5% increase is insignificant but if your home is in the $200,000 range that all of a sudden translates into large amounts of money.
Meanwhile in Washington, D.C. it appears the current state of perpetual chaos is not helping the situation. The United States needs to find the political will-power to solve this long-standing problem with our closest friend.
Adding to the man-made issues don’t forget that in the Pacific Northwest there have been horrific forest fires destroying huge swaths of lumber as the fires rage.
SUGGESTION – we can’t encourage you enough to act expeditiously and if possible speed up your home building plans to avoid rising prices.
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Call our Shelburne office at 985-5855.