If you haven't noticed, the price of cars and lumber have increased dramatically in the last year. So what's the deal with that and why are we paying so much lately?

Maybe you're in the market for a new car or you want to finally do that deck or addition to your home; well get ready to start shelling out the cash.

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Since the pandemic, prices have risen on items like lumber, new cars, and even chlorine for your pool. Why? And why these items?

The answer, according to nbcconnecticut.com, is that production of lumber, semiconductors for your cars computer, and chlorine manufacturers had lessened their production and staff during the pandemic. Couple that with shipping delays and you've got the recipe for shortages and spikes in prices.

During the pandemic, manufacturers only put in orders for what they needed and the supply demand they were currently experiencing. In this case, all it takes is one supplier to fall behind and that leads to a domino effect and the cost is of course passed along to the consumer.

So when will things get back to normal and the prices start to come down?

As far as lumber goes, home improvement projects skyrocketed during the pandemic. With more people staying home, more projects were planned and the demand for lumber reached a record high in 2020.

The good news for contractors is that lumber prices are finally beginning to fall after reaching record-high levels in April and May this year.

On May 2, 2021, lumber prices reached close to $1700 per 1000 feet of wood, an amount enormously higher than normal prices that averaged around $200 to $300 per 1000 feet in 2019.

According to the National Association of Home Builders, a home built during the lumber shortage costs an average of almost $36,000 extra. That along with high prices in the housing market as more and more people were leaving the big cities and looking to buy or even build a new home in the suburbs.

So what about getting that new car? Well the news here isn't as promising as in the lumber market. According to cnbc.com, the semiconductor chip shortage could last into 2023, but look for more factories to boost production and that means things could possibly turn around a little sooner.

The White House even announced Tuesday that it will establish a task force to address supply chain challenges in key sectors where a mismatch between supply and demand has been evident.

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