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22 SAY YOU SAW IT IN SUBURBAN July 20, 2021 – August 23, 2021 By Jeff Ostrowski BANKRATE.COM Home prices are soaring, pushed higher by a combination of record-low mortgage rates, strong demand from buyers and a lingering lack of new construction. In 2021, a new factor put pressure on home prices: Month after month, lumber prices jumped to new highs. Lumber costs soared more than 30 percent from January through May. However, lumber prices finally are cooling a bit as lumber mills ramp up production to meet the frenzied demand. In June, futures prices for lumber dropped below $1,000, off 45 percent from their springtime peak. Even so, the National Association of Home Builders says steep lumber prices still tack thousands of dollars onto the cost of a new home, an unwelcome increase for buyers already struggling to find homes they can afford. The trade group has lobbied President Joe Biden and Congress to end tariffs on Canadian wood sent to the United States. The Labor Department’s producer price index shows lumber more than doubled from May 2020 to May 2021. The National Association of Home Builders says the price tripled in just 12 months. Activity on the futures markets has been even more eye-popping. The price of lumber for March delivery resembles a price chart for bitcoin or Gamestop shares. A series of cascading effects Usually, homebuyers can ignore the intricacies of lumber futures markets and trade policy with Canada. But the intensity of the price spike for wood is affecting consumers. The National Association of Home Builders points to a variety of setbacks created by the lack of lumber. A builder in Georgia says he has been forced to postpone construction starts, delays that will limit housing supply going into the spring selling season. A builder in Alabama reports that the bill for lumber used to frame a typical new home jumped from $35,000 a year ago to $71,000 now. Mirroring that observation, the National Association of Home Builders says soaring lumber prices caused MAINE High lumber prices ease: Here’s what it means for homeowners and homebuyers the price of an average new single-family home to increase by $35,872 this spring compared to spring 2020. In another wrinkle, a Kansas builder says appraisers aren’t considering lumber prices in their analysis, and therefore are undervaluing homes. PulteGroup, one of the nation’s largest builders, says it expects to raise prices this year as it passes on the climbing cost of wood. “Driven primarily by increases in lumber and labor, our house costs will be higher in 2021,” Pulte- Group Chief Financial Officer Robert O’Shaughnessy said in a recent earnings call. Homebuilders aren’t the only buyers of lumber, of course. Homeowners renovating their houses also have diverted some of the supply by building fences, decks and additions. Lumber is just one factor in home prices Lumber prices finally are cooling a bit as lumber mills ramp up production to meet the frenzied demand. PHOTO | TRIBUNE NEWS SERVICE The dramatic rise in lumber prices has grabbed headlines in recent weeks. But wood costs are just one factor in the complicated equation behind home prices. The biggest factor is supply and demand. The U.S. population, and particularly the generational bulge of millennials entering their 30s and starting households, is growing faster than the number of homes available. That means that even as wood prices come back to earth, home prices are unlikely to follow. “Lumber is not the main reason why homes are unaffordable,” says Alex Barron of the Housing Research Center in El Paso, Texas. “It is the lack of resale supply — too many homes are still in the hands of landlords and investors. We had no land development after the crash for over a decade.”
July 20, 2021 – August 23, 2021 WWW.SUBURBANREALESTATENEWS.COM • 978-532-5880 23 MAINE EXIT KEY REAL ESTATE WE HAVE THE CORNER ON THE LAKEFRONT! 20 Emery Mills Road Shapleigh, MAINE 04076 207-636-2222 www.exitkeyrealestate.com NEW LISTING Shapleigh, ME MLS 1499432 $549,900 Nestled just in from the wide open expanse of Square Pond, this three bedroom ranch-style cottage has the best of all worlds. In addition to the cottage, there is a large storage shed for tools and toys, and an additional smaller shed right on the waterfront. NEW LISTING Acton, ME MLS 1499378 $439,900 Beautiful Chalet on 2.5 acres located on a hill with seasonal views of Mousam Lake in Acton, Maine. Sit on the newly constructed composite deck and enjoy the breezes off the lake during the Summer months and overlook the perennial gardens. UNDER CONTRACT Acton, ME MLS 1495740 $669,000 This charming lakefront home is nestled on the shore in a quiet section of Mousam Lake in Acton. Custom wood flooring in the kitchen, living room, dining room & bedrooms. UNDER CONTRACT Acton, ME MLS 1495307 $980,000 If you have ever dreamed of living at the lake, with tons of privacy, then this home is your answer. At the end of the road, just up a wooded drive, this property is located on the shore of Mousam Lake, one of southern Maine’s most popular lakes. NEW LISTING Sanford, ME MLS 1500217 $399,900 With much love and care from the current owners, this 2 bedroom, 3 bath home is located in the heart of Sanford, Maine. This home was thoughtfully designed with no details left out on a .27 acre lot with 2880 SF of living space. UNDER CONTRACT Newfield, ME MLS 1497210 $589,900 Well-maintained property tucked away in a quiet cove on beautiful Balch Lake. With a spacious open concept living-dining-kitchen area plus two bedrooms and a full bath on the main level, you’ll have a beautiful view of the lake from almost any vantage point in the home. NEW LISTING Acton, ME MLS 1499382 $65,000 Looking for a great place to build your vacation getaway or your dream home? Look no further. Wooded with a slope, this is a wonderful location! SOLD! Effingham, NH MLS 1489689 $239,900 If you’re looking for privacy, located for easy traveling to North Conway, Wolfeboro, and Portland, Maine, not far from the lake Kayaking, swimming, or if you like golf Province’s golf course is only down the street. STING UNDER CONTRACT Newfield, ME MLS 1497578 $199,000 Looking for a PROJECT? Look no further. Older mobile home with addition and open deck, right on the waterfront at popular Rock Have Lake. Easy driving distance from Portland, Maine, Portsmouth, NH and only two hours from downtown Boston! Sold AS IS, AS SHOWN, with no warranties. GREAT BUILDING LOT Parsonsfield, ME MLS 1488977 $42,500 Looking to get away from the ‘’busy-ness’’ of city life and enjoy the quiet of country living? Then plan to build your dream home or weekend get-away on this wonderfully wooded lot. Only about two miles from public beach area on Province Lake. FABULOUS HOME Sanford, ME MLS 1492945 $899,900 Custom-built Shingle Style home on the outskirts of the Village of Springvale. Appearing on the American scene between 1880 & 1900, the Shingle Style is distinctly American w/ its wood construction along w/ asymmetrical facades, gambrel roofs, balconies, welcoming verandas and large windows. GREAT INCOME POTENTIAL Sanford, ME MLS 1488992 $229,500 Looking for an investment? Looking to live in one unit and rent the other? This property is located within a few steps from the center of the City of Sanford - right off of Main Street, in the heart of the city. NEW LISTING Shapleigh, NH MLS 1500190 $339,000 This is NOT your typical Cape Cod-style home. Step inside and be prepared to experience the ‘feel’ of a real log cabin. With plenty of knotty pine ship-lap walls throughout, this home provides a coziness not available in traditionally-finished ‘blank walls’ of so many of today’s houses. BACK ON THE MARKET Waterboro, NH MLS 1490831 $87,500 Level building lot, boasting 230’ gradual sandy bottom frontage on a quiet part of Lake Arrowhead - offers serenity, nature and some of the best bass fishing in all of Maine. Plan to ‘’put in’’ your kayak or canoe and enjoy the tranquility of lake life at its best. UNDER CONTRACT Ossipee, NH MLS 1491840 $49,500 Beautifully crafted stone wall enhances this wooded lot, less than ten minutes from Route 16 and five minutes from Route 28. Dug well is already in place, as is the electrical power. Expired septic design available for threebedroom home. SOLD! Acton, NH MLS 1492612 $239,900 If you love nature’s beauty, come home to this Gambrel tucked in the woods just a few minutes from town. Offering 3 bedrooms, 2 baths, Open Concept Kitchen and living room, partial finish basement.
Page 1 and 2: VOL. 48, No. 5 MASSACHUSETTS, MAINE
Page 3 and 4: July 20, 2021 - August 23, 2021 WWW
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