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Covid distorted normal seasonality for a lot of sectors. Ordinarily, the late fall and winter would be weak, but sales were up nearly 30% because the lockdown eliminated the spring homebuying season. That caused inventories to crash over the winter since fewer homes are normally put up for sale during that time.
Actually, mortgage rates were rising during the 1-month crash. If the Fed hadn't come in and bought MBS, rates would be more normal.
It lowered mortgage payments by nearly 15 percent for the same balance. I remember seeing also a big rush to cash out equity (182 billion dollars?). So we have this huge remodeling boom as part of the result.
Ah yes, the dilemma with tariffs. Despite all the claims to the contrary, tariffs are paid by consumers and those producers whose profits are being protected by them take advantage. Witness beer tariffs in the Bahamas. There is a duty of about $1 per bottle on imported beer. The local brewers wholesale locally brewed Bahamian beer for the same price as the imported beer after the $1, effectively making $1 extra profit per bottle, an undisguised gift from the government to the owners of the breweries. Crony capitalism takes many forms.
Forget the beer tariffs.............the Bahamas are taxing everything as their source of income!
Import tax on stuff is around 40%, cars can be up to 65%! Then they have a 12.5% VAT tax on everything sold in the Bahamas (up from 7.5% a couple years ago when it started the VAT).
The increased tax curve will keep tourists away from the Bahamas further crushing their cash flow especially now after Covid crippled travel to the islands/cruise ships have been away for over year. The Bahamas are going to end up like Haiti
Covid distorted normal seasonality for a lot of sectors. Ordinarily, the late fall and winter would be weak, but sales were up nearly 30% because the lockdown eliminated the spring homebuying season. That caused inventories to crash over the winter since fewer homes are normally put up for sale during that time.
Actually, mortgage rates were rising during the 1-month crash. If the Fed hadn't come in and bought MBS, rates would be more normal.
It lowered mortgage payments by nearly 15 percent for the same balance. I remember seeing also a big rush to cash out equity (182 billion dollars?). So we have this huge remodeling boom as part of the result.
You are correct. A lot of honey do lists were started and/or completed in 2020. That was helped along by stay at home orders and workers transitioning to working from home temporarily or permanently.
Forget the beer tariffs.............the Bahamas are taxing everything as their source of income!
Import tax on stuff is around 40%, cars can be up to 65%! Then they have a 12.5% VAT tax on everything sold in the Bahamas (up from 7.5% a couple years ago when it started the VAT).
The increased tax curve will keep tourists away from the Bahamas further crushing their cash flow especially now after Covid crippled travel to the islands/cruise ships have been away for over year. The Bahamas are going to end up like Haiti
Bahamas has always been a tourist location. Also, people who may have less means will save all year, so when they get to the Bahamas they spend and want to enjoy the trip. Much like Disney World domestically.
Covid has hurt the Bahamas. Have to tax the tourist more to make up for considerably less tax revenue. Cruise lines are expensive right now if you're wanting to prepay a trip. You're better off to wait until ships hit the water and purchase your trip then. That may mean you have to sit on your money up to another year, but if you're willing to wait, it would likely be in your best interest.
I don't blame the tariff's for this escalation, as they have been in place for a couple years now and we've had plywood for ~$20 and a 2x6 stud for ~$4.60. In the last 6 months, that has doubled, or more. The workers certainly didn't get their pay doubled, and I don't see our mills, at least locally, cranking 2-3 shifts. Prior to the tariffs, our mills were all but shut down and lots of our lumber was coming from Canada instead so being back to US made lumber was good. But now with the prices over 200%? Something stinks.
I don't blame the tariff's for this escalation, as they have been in place for a couple years now and we've had plywood for ~$20 and a 2x6 stud for ~$4.60. In the last 6 months, that has doubled, or more. The workers certainly didn't get their pay doubled, and I don't see our mills, at least locally, cranking 2-3 shifts. Prior to the tariffs, our mills were all but shut down and lots of our lumber was coming from Canada instead so being back to US made lumber was good. But now with the prices over 200%? Something stinks.
With the stimulus money, and unemployment, they may not be able to keep workers. I have friends in the manufacturing industry and they have had some difficulty keeping good workers. Many can't pass a drug test, even though marijuana is considered legal in the area. However, with heavy machinery, you don't want your staff to be under the influence of any kind.
OP, Buy American and you get American prices. As long as your gov requires and promotes Buy American you'll pay more and really notice it. I understand the logic behind Buy American but maybe the way it used to be was because American-built products were not competitive and you lost your market and your plants closed because of it. The question is why aren't American products competitive?
You are correct. A lot of honey do lists were started and/or completed in 2020. That was helped along by stay at home orders and workers transitioning to working from home temporarily or permanently.
My number is 30 billion off, but it's still $ 152 billion dollars.
As a side note, not to be compared with the previous bubble, the difference between now and 2005-2007 was that there were a lot of serial refinancers back then who took cash out to pay the mortgage and other living expense. So there was that feeling that the music would eventually end in 2006.
With COVID subsiding, the USA is about to enter an era of unparalleled prosperity and economic well being. People have grown more resilient and possibly more grateful for good times, and will most likely take great advantage of having their post pandemic freedoms back.
With this prosperity comes the desire and ability to own their own home. This trend will continue.
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