Homebuilders, in the midst of recovering from slow sales caused by the Great Recession, have received a new blow that could slow sales again.

The cost of materials used to build houses is jumping..

Prices for drywall, cement and lumber are fast outpacing inflation of 2 percent, according to the National Association of Home Builders.

Lumber prices have increased 35 percent since December 2011, the association said, reaching a seven-year high on Wednesday. Lumber futures for March delivery gained 3.8 percent to $399 per 1,000 board feet on the Chicago Mercantile Exchange after touching $399.50, the highest since April 2005.

The Associated General Contractors of America reported higher prices for gypsum products such as wallboard, up 14.9 percent, and architectural coatings, up 10.5 percent in a year. The cost of interior walls for new homes has increased more than 14 percent from November 2011.

Experts said higher prices are the result of historically low interest rates that have boosted demand for new houses. In addition, rebuilding from Hurricane Sandy is requiring a lot of materials, tightening supplies. And demand for supplies from China is increasing, according to Scotiabank Group.

Rising building material costs dampen home sales