ABOUT to crash? The smoldering wreckage is just about everywhere where we are. New construction is proceeding. New builds were “from the low 300’s” and within a couple months the billboards changed to “from the low 500s” and still selling like a bargain.
The article contradicts itself. On one hand the housing market high prices is forecast not to continue but on the other supply will continue to be limited while demand remains high.
Excellent!
We need a Serf Amerika.
The market is insane here in Charlotte. I can easily afford to buy and want to buy, but I refuse to at these absurd prices. I know at least two other people here who are in the same boat.
Despite what BofA is predicting here, if interest rates really are increased substantially and we do have a recession as many predict, demand for houses is going to plummet. People are already feeling the pinch of inflation. Wages are already not keeping up with the real rate of inflation. Consumers are not going to have the money to buy houses or like me, will simply refuse to buy until the bubble bursts…….and it is a bubble.
Housing prices will still increase significantly as supply is stupidly low and the fewer people that want to buy a new home also means fewer supply of homes since ~80% of buyers are existing owners and with nearly all recent buyers in fixed mortgages and high incomes (or all cash), almost no risk of a repeat of 2007-2010 here in housing. And there just isn’t that much new home supply - and the cost of those is significantly higher than existing stock.
“In other words, 2022 will likely be the last hurrah of the US housing market.”
The lumber Broker is sad
Sellers market for sure.
“Russia is one of the largest lumber exporters in the world, which could pressure prices even higher”
Russia exports a lot of timber. They DO NOT export a lot of finished lumber.
My company bought finished boards from Russian mills(at least we did until a couple weeks ago). We purchased 1x4 & 1x6 mostly run to T&G patterns. That is because no western grading agencies will go into Russia and certify their lumber according to North American Lumber Standards. All of the boards were NO grade stamp. However, the quality of the Nordic Spruce wood fiber was the best in the world.
With companies like ours no longer buying Russian lumber, it will go to other places in the world. It will go to the Middle East, China, India, Pakistan, and other European countries.
This will mean that not as much Canadian lumber will end up going to China. It will mean that not as much US lumber will go to India and Pakistan.
The Russian sawmills are not going to shut down. They are just going to sell their product to whoever will pay the most for it. We were, now we are not.
We ain’t seen nuthin yet. Trump will waltz back into the WH in 2024. The Dem economic and cultural debacle is only getting started.
I know. Let’s bring in millions of third world people and put them on welfare with free housing...
Nobody is entitled to a home of their own. If you can’t afford a house, rent. Wait for market to crash, then buy.