Lumber Prices and Market Fluctuations:

• Lumber prices have experienced instability, ranging from $1,500-$1,600 per thousand board feet, now down to $500-$600.
• High interest rates initially created demand for new homes due to limited resales, but the situation has shifted as rates have decreased.

Interest Rates and Builder Optimism:

• Interest rates are dropping, now closer to 7%, which is bringing some optimism to builders.
• Lower rates could lead to more resale homes on the market, though it could also increase demand for new homes as buyers return to the market.

Challenges in New Construction:

• For non-spec homes, there’s a delay in construction time, leading to hesitation among buyers.
• While the Federal Reserve may cut rates in the future, inflation in building materials and mortgage company markups may keep rates stable.

Labor Shortages and Market Shifts:

• Skilled labor shortages continue, with potential impacts on new home construction.
• Remodels and additions are expected to decrease, especially those done during the pandemic.
• Growing pressure for multifamily housing due to municipal pushes for workforce housing, apartment complexes, and duplexes/triplexes.

Call for Feedback:

• Builders are encouraged to share their thoughts on the market outlook for 2024-2025.
• Builders are also invited to share how these market shifts are affecting their ability to secure projects and clients in their local and national markets.