Builders including price escalation clauses in sales contracts to protect them from future lumber volatility
Posted on April 26, 2021
- 47% of single-family builders in the HMI panel indicated that they were including price escalation clauses in their sales contracts.
- 10% of the builders reported pre-ordering lumber at lower price
- Price escalation clauses seem to offer some protection for builders, but sales to customers are still unpredictable as house prices have gone up