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It certainty wasn't anectodical for me, lol. I needed 2 more 4x8 sheets of 7/16 OSB to finish a wall section in my shop. I had bought 50 sheets at my local (non-chain) store 2 years prior at $8 or less a sheet. (Slight miscalculation).
I was SHOCKED to see the price was over $36 a freggin sheet!!
I expected the increase- I've watched construction prices skyrocket (I'm in commercial finance) so I knew it was going up. I didn't know it was going up THAT much, holy crap! I'm really, really happy I'm not doing any serious work anytime soon. My wife and I are going to wait this commodity bubble out before we redo our kitchen. Prices are insane.
Aside from that, I'm not so sure this still holds:
I don't know where you live, but where I am in north Texas, pretty much every builder has stopped adding new communities, has capped the number of contracts for existing ones around 2 a month, and has set expectations for build times at 12-14 months minimum. There is virtually nothing to buy new. I would say it's slowed down significantly. At the current pace, those interest rates could well be going right back up where they started before there's time to close on a new build for those who can get one.
They may have to reconsider how a building is built. There are many alternatives to stick built wood structures.
Aside from that, I'm not so sure this still holds:
I don't know where you live, but where I am in north Texas, pretty much every builder has stopped adding new communities, has capped the number of contracts for existing ones around 2 a month, and has set expectations for build times at 12-14 months minimum. There is virtually nothing to buy new. I would say it's slowed down significantly. At the current pace, those interest rates could well be going right back up where they started before there's time to close on a new build for those who can get one.
I was speaking nationally not locally. What you're seeing where you live is definitely not what's happening in many areas of the country.
Aside from that, I'm not so sure this still holds:
I don't know where you live, but where I am in north Texas, pretty much every builder has stopped adding new communities, has capped the number of contracts for existing ones around 2 a month, and has set expectations for build times at 12-14 months minimum. There is virtually nothing to buy new. I would say it's slowed down significantly. At the current pace, those interest rates could well be going right back up where they started before there's time to close on a new build for those who can get one.
Well they are building here like no tomorrow. Constant. Apparently there are lots of folks out there that don't give a rip about increased costs. No slowdowns at all. Build build build build.
Well they are building here like no tomorrow. Constant. Apparently there are lots of folks out there that don't give a rip about increased costs. No slowdowns at all. Build build build build.
Where is this? Where are the builders who have not set limits and complete builds in normal time frames?
Where is this? Where are the builders who have not set limits and complete builds in normal time frames?
Why would a builder stop selling as much as they could? Sure, they may have to adjust pricing and delivery times but why would they turn down business? As long as interest rates remain low, demand for new houses will remain high.
Yes, the article deals mostly with existing homes and pretty much reiterates that point that the lack of inventory is a potentially bigger problem. Builders are not putting up or significantly delaying new communities, and owners aren't selling existing homes. It's not for lack of demand; it's a supply problem. Materials, labor, and land are all in short supply which is one reason, besides already high demand, they keep going up in price, taking longer to build, and further adding to a backlog of demand.
Don’t worry when the foreclosure moratorium, and eviction of tenets is over, homes are going to flood the market, many landlords will dump their rental homes to get out of the landlord business especially after what just happened to them. And banks will have plenty of foreclosure homes on the market.
Don’t worry when the foreclosure moratorium, and eviction of tenets is over, homes are going to flood the market, many landlords will dump their rental homes to get out of the landlord business especially after what just happened to them. And banks will have plenty of foreclosure homes on the market.
Hmm. I wouldn't bet the bank on this assumption.
Some foreclosures, sure. But how many?
And it doesn't affect all real estate markets equally. Even markets within markets.
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