Posted on 12/29/2021 10:18:44 AM PST by Browns Ultra Fan
Well, at least construction materials are growing more slowly than energy prices!
The Producer Price Index for Construction Materials rose at a 34.7% YoY pace in November.
So it is no surprise that the median sales price for new homes rose 18.8% YoY in November.
(Excerpt) Read more at confoundedinterest.net ...
The official mainstream media response to this will be:
Step 1: Deny that there is a problem until it can’t be denied any longer.
Step 2: Blame Covid.
Now here’s the thing. Covid was just as bad in 2020. But inflation was tame back then. So what’s the difference between 2020 and 2021? We’ve got a different guy in the White House now.
When will the mainstream media wake up to that fact? My guess is never.
Here in Long Island, the tremendous jncrease in housing prices is fueled by lack of inventory amidst increasingr demand.
Closing is tomorrow. Watching the various online real estate sites, as accurate/inaccurate as they are, the value of that house is up almost 2% in five weeks based on the closings in recent weeks. The house was built in 2018, so relatively new. People in Central Texas move a lot.
Based on a year ago, this house has spiked upward in cost. But it doesn't appear to be slowing down, and for what houses are available, this seems like a pretty active late Fall, with the market still quite active heading into Winter.
A lot of people aren't committing to a new house build because contracts are being written that allow the home builder to raise the price of the house, up to the day of closing, if their building costs increase. Some people have basically lost their dream house because of this tactic.
People who have the means are selling their residences in and around NYC(and almost every other big city) and moving to the country or suburbs.
I know people that just decided to put their house on the market in Darien, CT. He formerly took the train into midtown Manhattan daily. He is now working from his Nantucket Island house. I know, tough life. No need to have a big house in the suburbs anymore.
Exterior panelling is down about 10% from its peak here during the summer but still 300% more than three years ago.
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