Lakes Region Construction Activity Update

Picture of a carpenter working on a floor

It has been a wild summer out here in the Real Estate industry!  I thought I provide all of you with some info on what has been going on in the construction and building supply industry in the Lakes Region related to what we see nationally.  On a national level, builder confidence in the newly built, the single-family home market jumped 5 points to 83 on the National Associations of Home Builders/ Wells Fargo Housing Market index. (I believe anything above 50 would be very positive!) This index is at its highest level in the 35-year history and it matches a record set in December of 1998. It’s funny how significant events can stimulate the market. When you look back to April when the COVID-19 crisis hit, the builder sentiment plunged to 30. When everyone looked at the reality of the pandemic, the building market quickly recovered, as homeowners looked for more living space in suburban and rural areas. The NAHB chairmen remarked, “The demand for new single-family homes continues to be strong, as low-interest rates and a focus on the importance of housing has stoked buyer traffic to an all-time high as measured on the HMI.”

As a result of the demand, we have seen a staggering increase for lumber prices. 

 

The cost has more than doubled since the middle of April 2020. Simultaneously, with housing demand still incredibly strong, builders, nationally and in the Lakes Region, continue to be hampered by a lack of skilled labor and available subcontractors to complete specific projects on a timely basis.

All of us who turn on our TV’s have seen the hurdles, leading to the increases in prices and shortage of certain building products.  Due to the COVID-19 crisis, many manufacturing plants cut back on their capacities, leading to a construction supply shortage. Currently, the raging fires on the West Coast in California, Oregon, and Washington and the hurricanes and Florida, Louisiana, and Texas Coastlines and the tornados in Iowa are adding to that. The bottom line, it’s a very difficult year out there. According to the NAHB, lumber prices have jumped more than 170% since mid-April, adding more than $16,000 to the price of a typical single-family home. Lumber producers got shut down in March and April and did not anticipate the surge in demand that ramped up at the beginning of April.

Looking at the Lakes Region, the new home market has a lot going for it right now, with a limited supply of resale homes on the market. All of us in the real estate community has seen many of our customers looking for building lots or completed homes in new subdivisions and have been reaching out to find builders available to construct houses.  I spoke with one of the representatives at Middleton Building Supply in Meredith. They have had a solid year with the demand for high-end lakefront homes, upper-middle house construction, and a ton of remodeling projects scattered throughout the region. With the COVID-19 shutdown, homeowners kept busy building decks, screened-in porches, outdoor patios, kitchen and bath renovations, and other cosmetic improvements. Lumber prices shot up during this time, according to their representative. A standard 2×4, 8′ length that cost $3.43 in the spring of 2020, is now priced at $8.04 a stud. 4×8 sheets of Advantech cost $32.64 in March 2020 and is currently priced at $47.41. For sheetrock, however, the price increase was modest. Composite decking and pressure-treated lumber were hard to get for some time as shipments came in sporadically. There were scarcities in vinyl siding with some factories cutting back their normal compacity. Overall, the company has been bustling, keeping their delivery trucks going every day.  At Gilford Home Center, the comments were very similar. The market has been absolutely crazy with a hectic summer; likewise, they experienced some building material shortages, especially for pressure-treated wood and composite decking. Window and Door arrivals were coming in as scheduled, and there were adequate AZEK trim boards, a popular component in today’s construction industry. A representative commented a 2×4 that was priced at $3.44 each in April 2020 is now priced at $7.20

At Lowes in Gilford, the business has been very brisk this past season. Retail customers, builders, and landscapers were loading their vehicles for tons of projects, both indoor and outdoor.

I have talked with many builders, plumbers, electricians, and site contractors slammed with activity this past spring and summer. Granted, we don’t have anywhere near the action you see in the South and West parts of the country where they have National Home Builders like Pulte Homes, K.B Homes, and Toll Brothers putting up massive subdivisions. However, if you take a ride around Lake Winnipesaukee, you will find lots of new homes, additions, and remodeling taking place. Have you been out to Governors Island? Some amazing high-end custom homes have been built. The same goes for Meredith, Moultonborough, Tuftonboro, Wolfeboro, and Alton. In Wolfeboro, there’s a new, custom lakefront going up with approximately 20,000 sf of living space. At Meredith Bay in Laconia on Lake Winnipesaukee, there’s lots of recent construction activity with many new fine homes added to their community. Same at South Down Shores and some smaller subdivisions scattered around the region.

It’s a different pulse, however, compared to the 1980s, where you saw a massive uptick in new condominium properties throughout the region. We are not experiencing that type of growth with these kinds of numbers. In any case, housing has clearly been a bright spot during the pandemic but let’s hope that rising lumber costs won’t stop the market’s momentum as we advance.

Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, NH

This article was written by Frank Roche, President of Roche Realty Group, with offices in Meredith and Laconia, NH. He can be reached at (603) 279-7046. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Share on facebook
Share on twitter
Share on google
Share on reddit
Share on pinterest
Picture of a carpenter working on a floor

Lakes Region Construction Activity Update

It has been a wild summer out here in the Real Estate industry!  I thought …

Read More →
The Opera House in Laconia NH

The Vision behind the “Opera House” Renovation: Revitalization of the Lakeport Area

There is a lot of excitement brewing in the Lakeport area! Previously shuttered for decades, …

Read More →

Roche Realty Group Sells Trustworthy Hardware Building

Laconia – Tom Drouin of Roche Realty Group represented both the Seller and the Buyer of …

Read More →
Highland Ridge

Strong Demand at Highland Ridge With 20 Home Sales.

Sales of newly constructed homes throughout the Lakes Region have been very brisk the past …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

New Hampshire Leads the Pack Again!

New Hampshire Leads the Pack Again! A recent article on moneywise by Esther Trattner showed …

Read More →

Hot Markets Around Lake Tahoe and Lake Winnipesaukee

I was reading a recent article on CNBC by Robert Frank the other day where …

Read More →
NH River Kayaking

Rolling down the river

A month and a half ago, we had a fun kayaking trip down the Merrimac …

Read More →

Historic Landmark is a Focal Point of Windward Harbor on Lake Winnipesaukee

Visitors to Lake Winnipesaukee have long recognized the special qualities of Windward Harbor. Its deep …

Read More →
South Down Shores on Lake Winnipesaukee, NH

How Did South Down Shores and Long Bay on Lake Winnipesaukee Get Started?

When construction started in 1981, Laconia’s South Down Farm offered an ideal picturesque setting for …

Read More →
Balmoral on Lake Winnipesaukee

Four Season Living at Balmoral on Lake Winnipesaukee

There are so many water-access communities in the Lakes Region that provide great memories. Let’s …

Read More →

An Overview of Governor’s Island on Lake Winnipesaukee

Find Governor’s Island Homes for Sale The Lakes Region is known for its abundance of …

Read More →
Suissevale on Lake Winnipesaukee, NH

Suissevale: A Desirable Community on Lake Winnipesaukee in Moultonborough

When you navigate the shores of Lake Winnipesaukee, there’s 71 square miles of water and 274 …

Read More →
Gunstock Acres in Gilford, NH

Gunstock Acres in Gilford: A Popular Water Access Community

Find homes for sale in Gunstock Acres We have so many interesting communities in the …

Read More →
The docks at South Down Shores in Laconia

The Impact of Second Homes in the Lakes Region

As I drive around the Lakes Region during this period of social distancing, I’ve been …

Read More →
At the top of Piper Mountain, New Hampshire

Hiking in New Hampshire

Hiking is an excellent (and free!) way to stay in shape, and the awesome feeling …

Read More →
Wolfeboro NH

Thankful to be Living in New Hampshire During This Difficult Period

All of us in the Lakes Region have seen a tremendous impact to our lifestyles …

Read More →

How we are embracing technology to continue to serve our clients and customers during this COVID-19 outbreak

The fast-spreading Coronavirus has created an enormous impact on all of us. Draconian measures to …

Read More →
Roche Realty Group Meredith Office

Roche Realty Group Reports Sales of $130.4 Million for 2019

Frank Roche, President of Roche Realty Group, Inc with offices in Meredith and Laconia, has …

Read More →
Kevin Shaw Realtor

Kevin Shaw of Roche Realty Group, Inc. Produces $36.6 Million in Sales for 2019

Laconia, NH – Frank Roche, President of Roche Realty Group with offices in Meredith and Laconia, …

Read More →
Warming feet by a fire at home

Home and Holiday

If you think about it, many classic Christmas songs (and movies) are centered on the …

Read More →
Thanksgiving for NH

Thanksgiving for New Hampshire

We have so many reasons to be thankful to live in New Hampshire. I have …

Read More →

There are many reasons to live in New Hampshire

It is said that the three most important words in real estate are “location, location, …

Read More →

2019 Parade of Homes to be held October 12-14

Get inspired this weekend with the latest in building trends and innovations! The 2019 Parade …

Read More →
White Oak Motel and Lakefront Cottages Sold

White Oak Motel and Lakefront Cottages Sold

Holderness– The White Oak Motel and Lakefront Cottages located on White Oak Pond has recently …

Read More →

Lakes Region real estate activity for the first 8 months has been strong

Article by Frank Roche, President of Roche Realty Group.    Real Estate activity for the …

Read More →

Historic Homes: Buy with Your Head as Well as Your Heart

Historic Homes: Buy with Your Head as Well as Your Heart I’d like to recommend …

Read More →
Northeast Storage has purchased a commercial building located at 57 Reservoir Road.

Northeast Storage purchases unique Reservoir Road building in Meredith

MEREDITH — Northeast Storage has purchased a commercial building located at 57 Reservoir Road. Tom …

Read More →
111 Church Street, Laconia

Former Lakes Region mental health building listed and sold by Roche Realty Group

LACONIA — Rick Hagan of Roche Realty Group in Meredith, NH represented the seller, Lakes …

Read More →

Live where others dream of vacationing

https://youtu.be/7G5Z4QRBzzc Weirs Beach is a recreation destination with something for everyone, including beautiful lake and …

Read More →
Gilford, NH landmark former restaurant sold

Former well-known restaurant in Gilford recently sold

Gilford, NH – A local Gilford landmark built in 1975 and operated as a restaurant …

Read More →
Lakes Region NH

Tips for buying a home in the Lakes Region

New Hampshire’s Lakes Region is an amazing place to own a home, whether it’s your …

Read More →
South Down Shores, a gated community on the shore of Lake Winnipesaukee, NH

Kevin Shaw of Roche Realty Group Inc. Produces Over $20 Million in Sales For 1st Half of 2019

Laconia- Frank Roche, President of Roche Realty Group Inc with offices in Meredith and Laconia, …

Read More →

Lakes Region full throttle during Motorcycle Week

You can already feel the area rumbling with visitors and activity this week as the …

Read More →

Is home ownership right for you?

There are advantages to both buying and renting, depending on your current lifestyle and financial …

Read More →

New Hampshire Ranked #2 Best State in the USA for 2019

The good news is out! New Hampshire as a state performed exceptionally well in a …

Read More →
explore nh lakes

Winnipesaukee Waterfront Sales Activity Spring 2019

The weather is getting warmer, the “Big Lake” is thawing out and the real estate …

Read More →
searching for homes on the internet

The homebuyer’s online search is like online dating

Searching for homes online can be a lot like trying to find love through online …

Read More →

The Importance of Getting Pre-Approved for Your Home Mortgage

If you want to be an attractive buyer in a competitive housing market, you’ll definitely …

Read More →
Lake Winnipesaukee, Moultonborough, NH

Moultonborough homes sold at highest prices, fastest pace ever

It’s a historical time to sell a single-family home in Moultonborough, New Hampshire. Data suggest …

Read More →
For sale by owner sign next to a house

For Sale By Owner? The facts about risk and reward

If you’re trying the “For Sale By Owner” (also known as FSBO/fizbo) approach to selling …

Read More →

What to do if your listing expires

Expired listings are a frustrating reality in real estate. If you want to change the …

Read More →
Meredith, New Hampshire

Window of opportunity open for Meredith home sellers

If you own a single family home in Meredith and have been waiting for a …

Read More →
Gilford, NH

It’s an unrivaled time to sell your single family home in Gilford

If you own a single-family home in Gilford, it’s an unequalled time to sell. It’s …

Read More →

Why it’s a great time to sell your home in Laconia

If you own a single-family home or condominium in Laconia, it might be a great …

Read More →
Own a piece of the playground!

Recess is better when you own a piece of the playground

When I was a kid my favorite part of the school day was recess, that …

Read More →
Hourglass and home

Has your home been on the market for too long?

Once there was a man who loved traveling, but he had been around the world …

Read More →
letting go

Letting go can show more strength than hanging on

One day a philosophy professor walked into her classroom while holding a drinking glass filled …

Read More →
New home first time homebuyers

You Always Remember the First

There’s just something special, nostalgic and memorable about the first, whether it’s a first kiss, …

Read More →
CEO

Sell Your Home Like A Boss

Some home sellers act as though their job is finished the moment they engage the …

Read More →
Real Estate Closing issues

Closing Crashers

You know the scene. It’s been in dozens of movies. The bride and groom hold …

Read More →

Leave a Comment