All lumber is priced per board foot. 8 foot 2x4s started around $2.49 before Covid. They went up to $9 at their peak. They got back down to around $3.50 a couple weeks ago. Today they are $5.48. Lumber prices are headed up again. A2x4 is just a 2×4, but if it means building products double in price then materials for $20,000 pole barn are now $40,000. Puts my big projects on hold…I’m going to coin the phrase “rodeo pricing”… just hang on!
Your getting a tiny view into my life. Now take that times 10,000 line items in building a house 
Uggh…yeah I’m noticing that as well.
For all you contractors, do you put a line in your contract stating “if material prices go up xx% before work starts then contract is null and void and will be re-quoted”? I’ve heard some have started doing that after the last spike.
My nephews home project is delayed. He had a bid from his builder, then the building prices soared almost Tripling his build. It’s on hold till both of them agree on a price. No animosity between them, it’s just a wait and pounce on hopefully reasonable prices. There is going to have to be where banks will lend so that builders can buy most of a builds materials and be able to lock in their material costs. Buyers can’t afford surprises and builders can’t afford prices of materials that wipe out their profits mid job. Ok children Can anyone say builders cost insurance??? I know you can. Thanks Mr Robertson’s Neighborhood.
I am in commercial construction, and in amy bid I send out I have it stated due to the volatility of material prices. This bid is valid for 30 days. I deal with steel more than wood and steel prices had gone up 10-18% a month for 12 months in a row. This month was the first in a year they held steady. I was told they are expected to remain until April then 5% increase. I won’t hold my breath.
Uggh…yeah I’m noticing that as well.
For all you contractors, do you put a line in your contract stating “if material prices go up xx% before work starts then contract is null and void and will be re-quoted”? I’ve heard some have started doing that after the last spike.
All the material cost hikes makes me
very grateful to be in a niche of remodelers where customers aren’t all too bothered by pricing. If it goes up it goes up, they trust the contractor and write the checks.
I am in commercial construction, and in amy bid I send out I have it stated due to the volatility of material prices. This bid is valid for 30 days. I deal with steel more than wood and steel prices had gone up 10-18% a month for 12 months in a row. This month was the first in a year they held steady. I was told they are expected to remain until April then 5% increase. I won’t hold my breath.
I get that quotes are good for 30 days, however what if a contract gets signed but the job doesn’t start for 3 months and now costs have tripled?
Think this last jump has much do with the tornados down south. OSB jumped back up over $5 overnight. It had dropped to $15ish from $60ish. My 2 years wait for a garage addition is finally supposed to happen in spring. Tried a month ago to get a material list so I could order and pay for materials before the next big disaster. He is promising to do that before Xmas now. Bad as prices are now, feel there’s a slim chance we will see anything lower for 3 years.
I will issue a revised price at the start of the job. If they are not fine with it we do not do the job.
I am in commercial construction, and in amy bid I send out I have it stated due to the volatility of material prices. This bid is valid for 30 days. I deal with steel more than wood and steel prices had gone up 10-18% a month for 12 months in a row. This month was the first in a year they held steady. I was told they are expected to remain until April then 5% increase. I won’t hold my breath.
<div class=”d4p-bbt-quote-title”>munchy wrote:</div>
Uggh…yeah I’m noticing that as well.For all you contractors, do you put a line in your contract stating “if material prices go up xx% before work starts then contract is null and void and will be re-quoted”? I’ve heard some have started doing that after the last spike.
I get that quotes are good for 30 days, however what if a contract gets signed but the job doesn’t start for 3 months and now costs have tripled?
The contractor has a chance to order material right away and get the prices set.
I have heard of proposals good for a week and good for a day.
I think it’s mostly the tornados down south that made the increase this time. Same thing happens with hurricanes
Well I for one am just sooo happy that a bunch of scientists decided to make this bug. I would hate to think what life would be like without covid.
I’m in Industrial construction and 80% of our materials are steel.
It’s been a pretty wild ride, seems like a lot of old projects are being brought up for a re bid.
Some are going forward, business as usual. And some are hesitant to spend money.
I’d say more are trying to get projects pushed through, than put on hold.
Makes a guy think that prices aren’t going back down.
Lumber is a commodity, traded on wall st like any other commodity.
11/12/2021 the price of 1000bf was $622.30 and started climbing to $1089 now.
retail prices lag behind futures by a few weeks, so this started before the tornadoes. Some on Wall st are making huge gains is all it boils down to. The prices won’t come down until demand goes down, but demand is still there, for now.
Could it possibly be that the U.S.government just added up to 30% import tax on soft wood lumber imported from Canada ? That price increase will be sent on down the line and eventually be paid by the consumer.
I have two areas of my life this has been affecting.
1. I run a metal shop and do all the quoting and buying. Most metal vendors have gone to quotes are only good for 24 hours. You place the order, they place the order for the material. Most of my customers understand the situation and just roll with it. We are way over capacity with business. It hasn’t seemed to slow anyone.
2. I’m building a new house. We are 6-8 weeks from finishing. When we were getting ready to sign our contract with the builder, he finally just said,”We have to give you an allowance for lumber and if it continues to go up, you have to pay more, if it goes down, you get to save” Thankfully, we signed early May when lumber peaked. We had $88k for lumber allowance. When they were three days away from starting to frame, we ordered the lumber package and it was $44k. Whew.
Work through a small rural lumber yard to obtain lumber and be proactive. Their lesser volume allows them to shop well ahead of the time you need it for a project. The guys I work with gave me an itemized list and I told them ultimately each week whether or not I wanted them to “buy” based on what I saw. We had units of 2x lumber purchased way back this summer for a build that didn’t really get going until November. Although we aren’t really using many 2×4 – 8′ studs…for comparison sake most of my lumber was bought in when those were about $3.79 a piece versus the $6 they go for now.
It’s not all doom and gloom unless you let it be. For those “waiting” for the lower prices or for “inflation to go away” – let me know when wages or labor rates go down………
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