What Will Bend New Home Prices Be in 2021?

By
Real Estate Broker/Owner with Bend Premier Real Estate 200009031

Bend OR New Home Prices Expected to Rise

The demand for Bend Oregon housing over the past year has broken records. With less than a month supply of single family homes for sale, builders have been working hard to bring new product onto the market. However, the demand has not kept up with the supply and more and more buyers are not able to purchase a home they can afford.

Besides the changes that great demand has made to Bend new home prices, there is another important issue connected with housing affordability - the price of lumber. Since the beginning of the pandemic in March when lumber prices dropped initially, the price of lumber has climbed at a tremendous rate, reaching a high of almost $1000 per thousand board feet in September before prices dropped in October. However, with decent weather and great demand, builders continue to build into the late fall and lumber prices are rising again. Traditionally lumber prices drop to their lowest levels in the winter, but the trends do not appear to be following suit which can be a problem for the affordability of new homes.

The Price of Lumber is Impacting the Affordability of Bend Oregon Real Estate

“Framing lumber makes up roughly a fifth of the materials cost of building a home,” said David Logan, director of tax and trade analysis at the National Association of Home Builders. “When we see a price increase this large over such a short period, it’s going to have negative effects on affordability for prospective home buyers.”

The National Association of Home Builders estimated earlier this year the spike in lumber prices increased the price of a single-family home by over $16,000.

When the hard cost of building a home rises that dramatically and is coupled with prodigious demand, home prices must follow suit. We anticipate that Bend new home prices will be up in 2021.

Lumber prices  Original blog can be read at Bend Premier Real Estate's blog.

*Chart from Trading Economics. https://tradingeconomics.com/commodity/lumber

Comments (7)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I’m pretty sure for all we know through this year 2021 will stay in leaps and bounds ahead of 2020, or at least I hope

Dec 18, 2020 04:09 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lynnea hope all is well it has been a while since we connected pre Thanksgiving, Endre

Dec 18, 2020 10:05 PM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Lynnea.

I read where home prices will increase next year, to the turn of about 6%.  

Dec 19, 2020 12:44 AM
Mark Neighbor
A O Home Solutions - Sell House Georgia - Buy House Georgia - McDonough, GA
Sell House Fast In Georgia

I think you are right, home prices will continue to rise over 2020. With wood prices up and a shortage of homes for sale in most of the US.

Dec 19, 2020 09:09 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Hello Lynnea Miller sounds like you have a great marketplace going there in Bend.  Hopefully the lumber spike will not resume.

Dec 19, 2020 10:11 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lynnea and I am worry with all the fire and lumber lost in the last year and can see prices for lumber going uo.

 

Dec 20, 2020 08:08 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lynnea, our lumber costs have increased substantially also, and so are the prices of our new construction.  Merry Christmas Eve!  

Dec 24, 2020 07:25 AM