Skyrocketing Lumber Prices Have Increased The Average Price Of A New Home By $35,872 In 1 Year

On Monday, the price of lumber continued to escalate dramatically. According to the Wall Street Journal, lumber futures are now “more than four times the typical price this time of year”

Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, a record and more than four times the typical price this time of year. Futures rose by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions.

But don’t worry, because the Federal Reserve insists that they have everything under control.

Hopefully, they are on top of things because we are rapidly getting into crisis territory. As I mentioned above, rising lumber prices have driven the average price of a new home up by nearly $36,000 in the last 12 months…

Skyrocketing lumber prices that have tripled over the past 12 months have driven the price of an average new single-family home to rise by $35,872, according to new analysis by the National Association of Home Builders (NAHB), with the price spike threatening to hobble the momentum of the U.S. housing market, one of the bright stars of the recovery from the pandemic recession.

Thanks to the completely and utterly insane policies of our “leaders”, high inflation is here to stay, and it is going to be exceedingly painful.

At this point, even Warren Buffett is acknowledging that inflation is starting to become a major problem

BECKY QUICK: I will ask this question from Chris Freed from Philadelphia. And whoever wants to take this on stage, “From raw material purchases by Berkshire subsidiaries, are you seeing signs of inflation beginning to increase?”

WARREN BUFFETT: Let me answer that, then Greg can get more into that. We’re seeing very substantial inflation – it’s very interesting. I mean, we’re raising prices. People are raising prices to us. And it’s being accepted. Take home-building. I mean, you know, the cost of– we’ve got nine home builders in addition to our manufactured housing operation, which is the largest in the country.

So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day, they’re going up.

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