Posted on 06/07/2021 5:46:51 AM PDT by deport
Electrical work, too.
But...WHY is inventory so low???
“Homeowners, stuck indoors during the pandemic, have recently been buying up lumber ...”
Are they doing it with their own money or borrowed money. The real question is are they taking on excessive debt?
In TX, construction crews were working 24/7 this past year during covid.
Houses are currently selling for $100k over asking.
Perfectly good houses are being bought sight unseen and bulldozed to build mcmansions so people do have money to throw at housing.
We should be shooting by now.
Report offers no reason, just implies government should be the answer.
Sick of this crap.
china will buy up those homes when they are foreclosed.
I added two raised beds with 4 2X10X10’s. It will take 10 years of harvest of the tomatoes to pay for them.
Brother just had to replace 2 A/C’s....unreal $$$.
I am a lumber broker.
There was a resin shortage caused by the shutdown during the February deep freeze in TX. It caused an already short supplied market to become worse.
This caused an additional 25% increase in OSB prices. They have now topped out at as high as $70/sheet for 7/16”.
The resin shortage affected several different engineered wood products such as LVL(laminated veneer lumber), wooden I-joists, 50 year warranty OSB underlayment, and some finger jointed lumber. All of these use the same type of resin.
The major increase in lumber was due to an initial contraction of supply due to covid shutdowns coupled with the increase in demand of honey do projects with everyone staying home. Since then, the exodus from all the major cities, coupled with 20-30 somethings buying their first house has caused a major increase in SINGLE FAMILY HOUSING.
Not apartments. People are moving out of condos and apartments and buying a stand alone house in the suburbs or country.
In addition, the sawmills have not been able to hire new employees because of the enhanced unemployment benefits.
Also, 50% of people can not pass a drug test. As an employer you certainly do not want a drug user around dangerous milling equipment. Same issue with the truck driver shortage.
However, all that being said. The lumber/OSB market has topped. It is starting to correct. However, prices will stay historically high probably through the rest of the year and into 2022. IF you do not need to do a project, wait.
What happens to homeowners who HAD a lower-price house in the past? Is it now worth a lot more because of this crazy inflation? Now, selling might not be an option if this home needs a lot of work & a person can’t afford that, then what? Will it be valued & taxed higher because of this(as I see it) completely unwarranted inflation of building materials? If a person is a renter & their home needs some repairs, will they not get done because of the price of the materials? Will rental prices go out of sight because of all this? These are some of the questions that might be raised, but I bet there are more.
Saying that material prices are sharply increasing, but not labor doesn’t sound right at all. The source of the lumber is a completely renewable resource, isn’t it? Somebody is getting shafted here.
I saw a guy this weekend showing off his wealth. He had two sheets of OSB and 5 2x4’s in his truck.
= = =
I salvaged ten 4x4x10-foot posts.
They are in my gun safe.
Guns and ammo are on the floor.
I hate braggards and those who live ostentatious lifestyles.
Plantation owners don’t want people to own homes its only for them dems wink.
thanks.
why\how does the price of lumber affect existing homes?
why\how does the price of lumber affect existing homes?
Some people have to flaunt it...
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