Uncategorized - Sycamore Title LLC

The price of lumber has soared. Where does it go from here?

Chris Winslow — Wed, 30 Mar 2022 18:15:34 +0000

Following the price of lumber during the pandemic has felt a bit like being on a rollercoaster. The price for lumber hit a record high last spring at $1,515 per thousand board feet. In August 2021, increased production caused lumber to drop to a pre-pandemic price of $389 per thousand board feet, giving lumber buyers some much needed relief. However, at the start of the new year, the market price for lumber almost tripled, soaring back up to $1,111 per thousand board feet—186% above its price in August.

Last year, pandemic lockdowns and labor shortages caused low production while working remote inspired massive home renovations and low mortgage rates triggered a demand for homebuilding. These high demands for a product in low supply caused prices to peak.

However, the current spike in lumber price is not caused by the economic impact of the pandemic—this time we can blame Mother nature. The epicenters of North American softwood production, the U.S. Pacific Northwest and British Columbia, were wrecked by wildfires last summer. November brought a record rainfall, resulting in mudslides and flooding, delaying lumber shipments coming from the Port of Vancouver. As a result, the limited lumber supply cannot meet the high demand from builder’s increase in housing starts.

Where does it go from here? Unfortunately, we will not see cheaper lumber prices any time soon. With the U.S. housing market nearly 4 million homes short of buyer demand, builders will continue to remain busy, and buying more lumber, for years to come. #growyourroots #sycamoretitle

2022 Projections: Seller's Market, Suburban Strength, Rising Rates

Chris Winslow — Thu, 24 Feb 2022 20:17:53 +0000

The U.S. housing market has been in a unique position throughout the COVID-19 pandemic. In 2021, home sales reached its peak with an estimated 6 million homes sold. With homes selling at record speeds, the average home price has increased nearly 20% with many buyers paying significantly more than asking price. As we anticipate what is to come regarding the Virginia housing market, here are a few key things to consider:

First, supply and demand indicate that the housing market will remain a seller’s market. Virginia’s current highly competitive housing market is, in part, due to the years-long labor and supply shortages. Even as these industries recover from the pandemic, Virginia showed a sharp decrease in inventory late 2021. There are more people who want to buy houses than there are houses available. With a strong buyer demand and very low inventory, we can expect the market to remain a seller’s market with a continual rise in home prices.

Second, there will likely be a shift in favor of suburban and urban markets. During the early days of the pandemic, with many people working from home or desiring to live in less populated areas due to the virus, the urban market was less impacted. As we shift back to a pre-COVID normal and people return to work and school, we can expect to see more demand for homes in urban areas.

Finally, mortgage rates are expected to continue rising. The Federal Reserve indicated that their pandemic monetary policies may end soon, and Virginia REALTORS® predicts that the 30-year fixed-rate mortgage will rise from 3.1% in December of 2021 to 4.0% by the end of 2022.

Titles and legal ownership with Sycamore Title

Chris Winslow — Wed, 09 Feb 2022 23:16:54 +0000

The real estate industry is innovating by the day - and the Sycamore Title team is dedicated to staying on top of the latest news and trends in the land title space. Check out our blog for insight into this rapidly-growing field, all things real estate closings and to learn more about our expert team! We plan to post blogs regularly, so be sure to check back often.

The Benefits Of Having Title Insurance

Chris Winslow — Wed, 09 Feb 2022 23:11:14 +0000