2008 is forecasted as a flat year for real estate in most of the East Bay. As with most situations in life – opportunity exists in every market. New home construction is suffering one it’s worst slowdowns in history and a result of this is that lumber prices are falling dramatically.

Lumber prices have fallen over $30 per 1000 board feet since the end of August. Here is a short list of what is happening with lumber mills:

• 12/6 Umpqua Lumber announces temporary shutdown
• 12/13 Collins Pine plans two-week shutdowns
• 12/13 Riley Creek extends downtime
• 12/26 Harwood Products Inc. to shut down indefinitely
• 12/28 Sierra Cedar Products plans permanent closure
• 1/2    Portac to shut down Tacoma sawmill

Savvy homeowners looking to maximize future appreciation will take advantage of this situation. Similar price declines will hit other products as the ripple effect from the stagnating U.S. housing market continues to spread through the economy.

Construction contractors are hurting for business. Now is the time to negotiate a really good deal on that remodeling project or addition to the house.

If you’ve been thinking of a major remodel, but don’t feel the time is right – do yourself a favor and just get a couple of bids to test drive just how much negotiating power you have. The result should convince you that now is the time to strike the deal.

Related Posts:

• East Bay 2008 Forecast
• Walnut Creek 2008 Forecast
• Danville 2008 Forecast