The US housing market is extremely competitive right now; prices are high and houses are selling fast.
When Molly Rodela — who is a wife as well as a mother to two kids — was finally able to find a suitable house for a reasonable price online, she could not spend any time considering the decision. She contacted her agent, visited the house without her husband, and then put in an offer $20,000 above the asking price all in the same day.
With her quick action, the Rodelas were able to get the house. But many have not been so lucky.
Moreover, the factors behind the tight housing market are concerning.
For homebuilders across the country, it has become harder and harder to create affordably-priced housing. One of the reasons is the increased labor costs associated with a shortage of skilled workers.
And a huge factor has been the recent spike in the price of lumber. In fact, the National Association of Homebuilders recently reported that the cost of building a new house has gone up by $24,000 due to soaring lumber prices alone.
For homebuyers, the issue may go from bad to worse.
The Biden administration recently took the first step to double tariffs on Canadian lumber from roughly nine to 18 percent.
In doing so, the administration is falling for an age-old economic fallacy.