My friends put down money on a home to build in a development in Idaho. It was in the $300k range. In the meantime, they’ve had to increase the price by $100k. Now, I don’t know how they can get away with that considering there is a signed contract, but I don’t think they can.
I say that because the whole thing was getting so weird that our friend backed out, and they sent the money back to my friend. My suspicion is that my friend could have probably sued.
BTW, I think the reason is this: 4x9 OSB sheets were $9 a couple of months ago. Now they are $24. And 2x4 studs were $3.25 and now they are $7.29.
There is a construction material hyper-inflation going on right now. For builders that signed contracts to build before actually buying the materials, they are utterly screwed.
We are seeing the first signs of the coming hyper-inflation brought on by the government printing and raining down trillions from the skies. This is why I say, 2019 was more interesting than the previous year. 2020 blew 2019 out of the water, but just wait until 2021. It will be one for the record books. Hang on tight. It’s going to be a very, VERY bumpy ride like nobody alive today has ever seed in their lifetime. We will wish for Jimmy Carter inflation.
In my neck of the woods I’ve seen a dramatic increase in home prices even as dozens of FORECLOSURES are showing up in the property listings. That seems like an indicator of totally irrational behavior by home buyers.
Lumber/plywood/osb are at record high prices currently. However, they increase in a 2500sq ft house is probably $8-15K. It is NOT $100K. something else is up.
Just built a 40x60x16 wood frame metal building with 12 ft side shed and 16x36 interior room...signed contract early June. Price of 33k included house wrap and 3 large garage doors (slab and erection not included). For grins a couple of weeks ago used their online calculator to see what it would cost now. Price would be at least 15k higher...and that was before Sally hit. Building boom going on.
...the reason is this: 4x9 OSB sheets were $9 a couple of months ago. Now they are $24. And 2x4 studs were $3.25 and now they are $7.29.
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Yes. Prices are up everywhere.
DH’s new shed had a 15% materials surcharge added due to material costs.
“BTW, I think the reason is this: 4x9 OSB sheets were $9 a couple of months ago. Now they are $24. And 2x4 studs were $3.25 and now they are $7.29.”
Ain’t that the truth. Standard 2x4x8’ is $6-$10 at Lowe’s. I’m guessing that’s why we can’t keep a house on the market In our neighborhood...cheaper to buy existing than build new.
I’ve seen this movie before.