My wife is the CFO for a lumber company and it has been a crazy year and a half. They ran 2 shifts working overtime for most of the year last year, could not keep up with demand. Lowe’s is a client they sell to and all this started with pandemic remodeling boom, Lowe’s and all the building supply companies have had record years last year, her company had a record year.
They had problems and still are finding lumber, they are buying from all over the world. Many timber companies shut down for a period of time. Personnel shortages caused by people being out with covid, people choosing to stay home when they get stimulus money, it all feeds the problem.
Now add the interest rates being low, new home construction booming, existing home shortage, and it makes for a perfect storm for supply and demand. I don’t who is price gouging, her company is making more money on volume, their margins are still about the same.
The historic winter mess in Texas is adding to problem in the building industry with companies that supply raw materials for paint and plastics and polymers trying to recover from the down time and damage.
Here is my question, where were all these people living before? When people sell a house for a great profit are they downsizing? How are they replacing what they are selling in a way that makes economic sense?
Where I live it is almost impossible to get a contractor to give a quote to build a new househey can’t, the prices of materials is too volatile. they will do cost plus, but the bank won’t do a loan on that.
I am so glad we started our house when we did, there is no way we could have built right now. Being a log cabin and everything being wood on the inside, it cost would not be cost effective.
Like others have said there is a huge housing bust coming. How are these people going to get out of these houses they paid way too much for?
What happens when the eviction moratoriums are done? Foreclosures will be coming.
we are blessed to be able to go in with my brother in law and buy the house and property next to us. The guy went off the deep end, left his wife, started dating a drug addict, go into trouble with the law, ended up in jail. They agreed to a price with us, as the mortgage is 3 months behind.
In our area we are seeing houses that will not appraise for the selling price and people are making up the difference out of pocket, that just insane to me.
I know a young couple that bought a house exactly a year ago for 235,000 decided to sell it and live with his dad until things settle down and they build on land they already own. Their house was on the market for less than 24 hours and sold for 297,000. After paying the realtor, they will still make 45,000, not a bad return for 1 year.
The trend that started here is something that I have never seen before, people are not listing their houses with a price. They set a date and say they will take offers, so now they don’t give you a starting point it is all up to the market.
They had problems and still are finding lumber, they are buying from all over the world. Many timber companies shut down for a period of time. Personnel shortages caused by people being out with covid, people choosing to stay home when they get stimulus money, it all feeds the problem.
Now add the interest rates being low, new home construction booming, existing home shortage, and it makes for a perfect storm for supply and demand. I don’t who is price gouging, her company is making more money on volume, their margins are still about the same.
The historic winter mess in Texas is adding to problem in the building industry with companies that supply raw materials for paint and plastics and polymers trying to recover from the down time and damage.
Here is my question, where were all these people living before? When people sell a house for a great profit are they downsizing? How are they replacing what they are selling in a way that makes economic sense?
Where I live it is almost impossible to get a contractor to give a quote to build a new househey can’t, the prices of materials is too volatile. they will do cost plus, but the bank won’t do a loan on that.
I am so glad we started our house when we did, there is no way we could have built right now. Being a log cabin and everything being wood on the inside, it cost would not be cost effective.
Like others have said there is a huge housing bust coming. How are these people going to get out of these houses they paid way too much for?
What happens when the eviction moratoriums are done? Foreclosures will be coming.
we are blessed to be able to go in with my brother in law and buy the house and property next to us. The guy went off the deep end, left his wife, started dating a drug addict, go into trouble with the law, ended up in jail. They agreed to a price with us, as the mortgage is 3 months behind.
In our area we are seeing houses that will not appraise for the selling price and people are making up the difference out of pocket, that just insane to me.
I know a young couple that bought a house exactly a year ago for 235,000 decided to sell it and live with his dad until things settle down and they build on land they already own. Their house was on the market for less than 24 hours and sold for 297,000. After paying the realtor, they will still make 45,000, not a bad return for 1 year.
The trend that started here is something that I have never seen before, people are not listing their houses with a price. They set a date and say they will take offers, so now they don’t give you a starting point it is all up to the market.
