Lumber prices are at an all-time high. Because of this, there is a surge in home prices across the United States. On average, home prices have increased by about $24,000. Lumber prices won’t be lowering anytime soon.

PotlatchDeltic Corp. said lumber prices are climbing in the fourth quarter of 2021 and the housing outlook is positive for demand. “Looking ahead, lumber prices have continued to increase in the fourth quarter and the outlook on housing fundamentals that drive our business remains positive,” said Eric Cremers, president, and chief executive of PotlatchDeltic Corp.

Why has this rise occurred? Well, the obvious reason is the COVID-19 pandemic, along with a labor shortage. With the pandemic, there has been mill closures and a surge for supplies for DIY and other constructions at home. The lumber demand isn’t being met with the shortage in supply.

As a real estate investor, how can you benefit from this rise in lumber? Well, the rise of prices in homes is costly for the average home buyer, but for an investor who knows the market and is willing to invest and find an edge. A hard money loan is designed for situations like this in which you need fast cash to close quickly. During this time of high prices, investors with cash offers and friendly seller terms can stand out from the pack.

At Murk Investments, we can help you navigate the process and make sure a hard money loan is right for your real estate investment. Right now, building and buying homes cost more than it used to, and this is currently the “new normal.”

At Murk Investments, we are local to the San Diego area and are comfortable working in this market better than a national or regional lender. We lend on properties in most San Diego markets. One of the most important factors we look at is the cash the investor is bringing into the deal. All of our loans fall under a 65% loan to cost. 
 
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