I come from a family of printers...that is not a good example. They will never recover from what technology has done to that industry.
Lumber prices😳
- Thread starter giles
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From my reading they say the driving forces to the lumber spike is ultra low interest rates are driving new home construction. Coupled with the lockdowns driving remodels. Then throw on top the active hurricane season made for the perfect storm.
All factors for sure. That's the other issue is we've never had this many market variables in play at once. Quite literally just about every effect from the causes, is in play.
The good news is housing inventories are at all time lows and you can charge a premium for your place. It's never been worth more money than it is today. Capitalize on it, downsize, hold steady, and chances are you'll be better off in the long run.
at1010
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print is an extreme example. I’m sorry to hear about family of yours that were impacted. However the industry itself is still alive when many said it wouldn’t be. The ones who have survived have pivoted and found ways to print niche items that are more profitable.
I feel this thread has taken a turn or maybe I just suck a representing my thoughts. However it am seeing two trains of thoughts being discussed here and again, this is possibly my interpretation of the messaging.
1. One is the economic situation of the USA
2. How this is impacting people personally - which I totally empathize with and pray no one is negatively impacted.
I myself am building a home with my wife and have seen some of this craziness first hand. I just wanted to share my take on the economic impacts and why I don’t feel this is or is not along term issue. I pray I am correct and some of the negative trickle impacts as described by others doesn’t come to fruition.
My tinfoil hat wearing opinion... manufacturers of building materials are simply price gouging because they have so many excuses available to get away with it, and because interest rates are so low that people are willing to literally pay ANYTHING to build their new home. It’s the perfect storm.
Bigcountry40
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My buddy who owns the pole barn building business I work for in the summer had to rewrite all his contracts with his customers. Some of the se were written in a year in advance, sines customers canceled.
My dad used to make an alright living. After 30 years in the business his shop closed the doors. Still had some years to go before being able to collect retirement, he had to find work and he only knew printing. He retired a year ago making the cost of a 2x4 an hour. Put that into perspective for me.
Why would anyone write a construction contract a year in advance?
I couldn't buy a double wide for what I have into this place. So how is that a win?
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Heading for another foreclosure / short sale crisis if you ask me. Home values will plummet people will hand the keys back instead of selling. Always diversify. When we bought this house 6 months ago we bought it right and made sure there was equity potential before the purchase. Still, the mortgage is only in my name. Worst comes to worst and the bottom falls out and I need to dump it, she can go buy a smaller house and I can tell the mortgage company to get fucked the keys are in the mail.
Bigcountry40
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He’s that busy and booked, he has his next year (barns he going to build planned out) I believe he has clauses that protect him if prices on materials increase for situations like this. I don’t ask to many questions J, I show up in the summer he pays me extremely well and I hammer away. I do hear him tell customers all the time “ if that contractor is available right now and isn’t booked, that means he does shitty work”
Glass half empty, brother. I'm not gonna argue something this personal over the internet with ya. Was just trying to spin it positively. You still have a roof over your head. No sense in letting shit you can't control get you all worked up.
at1010
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im sorry to hear about your dads situation. I’ll echo Jesse. I don’t want to debate or get into personal situations on the internet.
My takes were simply the macro economic opinions I have based on the articles first posted.
I really hope the sale of your home and all works out buddy.
Bigcountry40
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I just called my buddy so to make I’m not an idiot. So all the jobs we started from June of 2020 and on, a new contract or agreement had to be written due to material shortage, price increase, etc. And he had agreements up to March 2021 that had to be redone. Before COVID metal wood prices with his supplier were very stable, and he could calculate cost very accurately
Ohiosam
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This little pile of maple and cherry only cost $165. Of course I had to provide the logs.
Let's not forget the forest fires. That didn't help lumber prices.
My buddy is planning to build right now. His thoughts: interest rates are so low it doesn't matter. My thoughts: get your calculator out. You own the ground. You have a nice home already. Wait for prices to fall. Even a percent or two higher interest rate doesn't offset 3x the cost of materials.
My buddy is planning to build right now. His thoughts: interest rates are so low it doesn't matter. My thoughts: get your calculator out. You own the ground. You have a nice home already. Wait for prices to fall. Even a percent or two higher interest rate doesn't offset 3x the cost of materials.
I ain't selling. Just stating that the mental prep of that has started. I could refinance and likely keep everything the way we currently live.