The price of wood is getting out of control

24 June 2021, 08:46

NormanConquest

Yes, it is but I'm not holding my breath to see any financial relief to the public sector. But although there are surely many factors on cost increases, I am still of the opinion that shipping charges are to blame + that is due to fuel costs that are directly due to our new commander in thief.

24 June 2021, 15:20

Aspen Hill Adventures

The situation makes me wonder with all the new homes going up and the cost it is to build them being so high- How will this affect the existing properties? An excuse to raise property taxes even more?

The folks building now may change their mind about living in their new place a few years down the road and will want to sell. What would such a property be valued at? If it cost double the average price to build would they expect a double value at the time of sale or just have to eat less profit or potential loss to cover those materials costs?

I'm personally holding off on some improvements due to material cost inflation and shortage. I can wait and will.

I also wonder if there will be some sort of crash due to the expanding economic situation? What do you all see happening?

25 June 2021, 02:25

boom stick

Soooooo with the cost of building materials so high that must make existing homes more valuable?

25 June 2021, 04:53

Todd Williams

quote:
Originally posted by boom stick:
Soooooo with the cost of building materials so high that must make existing homes more valuable?

If you look at what existing homes are selling for, at least in the DFW area, it is making existing homes more valuable!!

Existing homes are selling within days of listing, often sight unseen, and for way over asking price. One of the reasons cited are you can buy today and know exactly the cost of your new home vs building and being at the mercy of rising prices.

On the wood issue, as a builder, I'm frustrated by it. The commodities market shows lumber dropping by as much as 40% over the past couple of weeks. Yet, our supply yard hit us with a 30% increase in delivery prices last Tuesday. WTF Over?!!

I'm telling all of my clients to hold off at 30 to 60 days to see what happens. The supply yards are obviously price gouging at this point and I'm looking forward to them sucking the big one when demand crashes around them and they get their comeuppance.

Do I sound pissed? Yep. I am!

25 June 2021, 05:19

Beretta682E

quote:
Originally posted by Todd Williams:
quote:
Originally posted by boom stick:
Soooooo with the cost of building materials so high that must make existing homes more valuable?

If you look at what existing homes are selling for, at least in the DFW area, it is making existing homes more valuable!!

Existing homes are selling within days of listing, often sight unseen, and for way over asking price. One of the reasons cited are you can buy today and know exactly the cost of your new home vs building and being at the mercy of rising prices.

On the wood issue, as a builder, I'm frustrated by it. The commodities market shows lumber dropping by as much as 40% over the past couple of weeks. Yet, our supply yard hit us with a 30% increase in delivery prices last Tuesday. WTF Over?!!

I'm telling all of my clients to hold off at 30 to 60 days to see what happens. The supply yards are obviously price gouging at this point and I'm looking forward to them sucking the big one when demand crashes around them and they get their comeuppance.

Do I sound pissed? Yep. I am!

Scummy thing to do.

Futures in lumber have collapsed from the highs.

Prices come down - they always do. This is all supply chain covid related not something permanent. Long govt bond yields are collapsing.

Look at 5.56 green tips - raised the price to $14 a box and they are stacking up at academy.

Mike

25 June 2021, 08:33

Lamar

my buddies youngest boy just built a house.

he paid something over 200K, but by the time it was finished it was worth over 350K.

25 June 2021, 09:26

NormanConquest

Too many folks out there that don't remember their history. Don't forget 1929 + the collapse due to faulty investments + my own personal favorite, "Black Monday" of 1987. Being in business for myself I work all kinds of hours. My wife (at the time) said, "You'd think the economy would come to a crash if you took a day off!!" fume,fume. So I told her, "O.K. just for the sake of peace I will take off next Monday. O.K.?" I did + that was black Monday. I suppose I could have been nicer + not said, I told you so.