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I have lived long enough to see these things. After Katrina prices went through the roof for materials. Apt. complexes went up like crazy since there was a housing shortage. My insurance adjuster showed me how the program adjusted prices for shingles and plywood on a daily basis. The bubble will burst. Trees do not grow to the sky. The greedy folks will go out of business. | |||
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| Big Stack |
Interest rates have been at these levels for years now. Why would they all of a sudden be causing price increases. Maybe there are supply issues? Production down because of Covid restrictions? Edit: Okay, the Covid induced out flow from the cities has caused a huge demand for SF houses. Housing starts are up 30%. And materials producers though Covid would suppress demand, so they scaled down production. Oops.
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| Member |
When this chinese flu shit started we all talked about the long term damage that would be caused by .gov draconian lockdowns. We may be seeing just the start of the damage rearing it's ugly head. Hope I'm wrong. "And I think about my loves,well I've had a few. Well,I'm sorry that I hurt them, did I hurt you too" I Was Wrong--Social D. | |||
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| Member |
I'm curious. Was the high building material prices just in Louisiana and other states affected by Katrina, or were they nation wide? As I understand it, this is happening all over. "And I think about my loves,well I've had a few. Well,I'm sorry that I hurt them, did I hurt you too" I Was Wrong--Social D. | |||
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| Member |
^^^^^^^^^^^^^ Mississippi got the brunt of Katrina, NOLA was a flood caused by a levee break. The cost was all over for materials. There was such a shortage of sheetrock CHICOM stuff was put in which poisoned people. It had to be torn out months later. Some of the prices were just local due to logistics. | |||
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| Member |
Got it, thanks. I don't remember much from Katrina except for the internet memes floating around. "And I think about my loves,well I've had a few. Well,I'm sorry that I hurt them, did I hurt you too" I Was Wrong--Social D. | |||
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| Member |
Precursor materials (which few take into consideration for just about anything) are in short supply. COVID combined with the freeze this year have taken many of the chemical plants off line and are just now starting to ramp up again. We are being told late June or July before our resin suppliers will be back in full production. This just in the architectural coatings segment ------------------------------------------------------------------------------------------- Live today as if it may be your last and learn today as if you will live forever | |||
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Ammoholic |
Probably going to postpone new roof for now. It's nuts. Jesse Sic Semper Tyrannis | |||
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Unflappable Enginerd |
Installed a new HVAC system 2 months ago, back when things were just starting to go crazy, seriously glad that's in my rear-view mirror... __________________________________ NRA Benefactor I lost all my weapons in a boating, umm, accident. http://www.aufamily.com/forums/ | |||
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| Get my pies outta the oven!  |
It’s not any one thing, it’s a perfect storm of numerous factors to include: -“Free” government money, AKA Stimulus -Severe supply chain disruptions all related in one way or another to the Covid Pandemic -People stuck at home for the better part of a year on Covid lockdowns deciding they had the time to renovate kitchens and baths and do lots of other projects around the house, AKA a huge increase in demand for all these items -The hot housing market -Trump era tariffs on foreign steel and other materials -Blue state refugees fleeing Democrat shitholes What else am I missing? | |||
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Fighting the good fight |
If by "years", you mean ~13 months, then yes. Otherwise, no. The super low interest rates started at the beginning of the pandemic, and have only been this low since roughly April 2020. There wasn't a lot of new home construction going on at the start of the pandemic in Spring 2020, because everything was shut down. Then it picked up into the summer, but it came nowhere near to meeting the sudden massive demand for new homes. Then construction tapered off over the winter as it always does in most non-tropical areas. And now it's starting to pick up again in the Spring. So last year's home building season was abbreviated, due to the fear and the shutdowns of the early pandemic, and what little was built was snatched up immediately. This is now the first "regular" home building season since interest rates dropped to their lowest level in history. And there's a ton of demand built up, so they're building the crap out of new houses. (When they can find the materials.) Take that, then toss in all the other related factors, as enumerated by PASig and others. It's a hot mess. I'm so thankful I got my new house when I did. | |||
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blame canada |
You're not wrong. The various reasons why the various components involved in construction continue to skyrocket is multiple. Inflation being a key component. Even the census idiots are finally being forced to recognize the shift/migration happening in the country from libtard controlled to less libtard controlled areas. There are so many factors in all of this. Bottom line is, in real dollars, or real value, most of the country is experiencing the highest value any of us have or will ever see in our lifetime. A historically significant reset is going to happen soon. ~~~~~~~~~~~~~~~~~~~~~~~~~ "The trouble with our Liberal friends...is not that they're ignorant, it's just that they know so much that isn't so." Ronald Reagan, 1964 ~~~~~~~~~~~~~~~~~~~~~~~~~~ "Arguing with some people is like playing chess with a pigeon. It doesn't matter how good I am at chess, the pigeon will just take a shit on the board, strut around knocking over all the pieces and act like it won.. and in some cases it will insult you at the same time." DevlDogs55, 2014  ~~~~~~~~~~~~~~~~~~~~~~~~~~ www.rikrlandvs.com | |||
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This Space for Rent |
I might agree that homebuilding slowed in the beginning of the pandemic but not for long. Homebuilding was determined to be an 'essential business' and never stopped while the factories did. Here in Denver homes are still going up at record pace and several homebuilders were seeing record sales thru the pandemic. Maybe your area was different but for the Western States and Canada homebuilding went full steam ahead. Lumber and steel product pricing is too volatile for this to continue. You are going to start seeing suppliers backing out of commitments and hopefully the housing market won't crash along with it. Being in Mixed Use Development, The materials market is going to force us to put a number of projects on hold until material prices come down. We will never know world peace, until three people can simultaneously look each other straight in the eye Liberals are like pussycats and Twitter is Trump's laser pointer to keep them busy while he takes care of business - Rey HRH. | |||
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| Big Stack |
Mortgage rates have been pretty flat for at least ten years. When I first started thinking about buying a home (think 1990s, rates were traditionally around 7 percent. They haven't been that high since then. They've been pretty flat in the 3-4% range for the last decade.
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Member |
I’m nervous about hail season here. Won’t expire until June. Hail hits, we file claims, roofers charge the higher price, it hits the insurance companies, and they increase homeowners. Whole situation is a bitch. Thanks Wuhan! Preciate it! What am I doing? I'm talking to an empty telephone | |||
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| Ammoholic |
  Jesse Sic Semper Tyrannis | |||
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| Fighting the good fight |
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| Member |
And it continues to rise... 14/2... now $104 12/2... now $140, was 122 10/2... now $273, was 245 10/3... now $404 14 THHN... now $68, was 58 12 THHN... now $98, was 82 10 THHN... now $128, was $122 And the supply is lacking, which is only going to make matters worst. The supply is dwindling and the home improvement stores are starting to look like the grocery stores (empty shelves). | |||
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| Stop Talking, Start Doing |
We’re in the midst of building a house and the builder sent us a letter two weeks ago saying that we (the buyers) will need to help absorb the lumber price increases — that his margins have gone from slim, to basically zero (or even negative), on some of the home he priced back in the Fall (we signed the build contract / fixed price back in October). He’s going to continue to eat all of the other price increases — wiring, labor, glass, appliances, flooring, etc. and is hoping to just break even with our home. For us this means $35k increase in price for lumber. And that’s his cost .. no margin / profit built in (he showed us real numbers / invoices). We are still moving forward with it — we’ve come too far to walk away .. and in the grand scheme of things $35k isn’t a huge deal (when considering where home prices are and today’s market). We’re still going to have pretty good equity in the home too right off the bat. For reference, it’s a 4,700 square foot home (two story with daylight basement). _______________ Mind. Over. Matter. | |||
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| Member |
Interest rates are causing inflation because of all the free money the government has doled out. Interest rates have to go up. I've seen 10% or more price increases on everything lately from groceries to parts and materials....... Real Estate prices are a key example why prices need to go up. Most buyers, buy on payment.....they qualify and can afford a $1500 per month mortgage, well at 2.5% it can buy lets say a $400,000 house.....at 5% it only buys a $250,000 house (just throwing numbers out there). so it makes housing prices go up....... There is NO housing shortage. They've been building houses like crazy nationwide and the population hasn't increased that much. It's because interest rates are so low, you now have people owning multiple houses. A lot of people felt real estate was a better return than renewing their expiring bonds at 2%. | |||
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