Credit: Realtor.com
Lumber prices have risen more than 170% since April due to production constraints from the pandemic. Despite this surge, homebuilders report the most confidence they have ever had in their industry, based on The National Association of Home Builders' monthly confidence index. Low interest rates continue to spur demand, and a shortage of existing homes means there are plenty of buyers for new construction. For now, builders have been able to pass on these higher costs to buyers; however, increased prices could drive affordability issues in the near future.
San Francisco Market Stats