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Leon[_7_] Leon[_7_] is offline
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Default OT: House Offer Accepted. What A Crazy Market!

On 5/5/2021 11:21 AM, Spalted Walt wrote:
DerbyDad03 wrote:

On Wednesday, May 5, 2021 at 10:45:46 AM UTC-4, Leon wrote:

Supply and Demand indeed.
Supply of new homes yes, supply of materials NO. So there is really no
reason for material prices to be as high as they are.


I curious as to why you continue to say that there is no shortage of materials,
when it's really easy to find current articles (like as of last week) that say that
there is. I'm asking, not arguing.

I'm not in the middle of it, so I only know what I read, which seems to dispute
your claim. What are you seeing/hearing/reading that indicates that there is
no shortage?

e.g. https://investorplace.com/2021/04/lu...s-are-soaring/

In addition, while new homes are certainly being built, how much has the price
increased due to reported lumber shortages? I've seen numbers that range from
$16K to $24K on average.


+1

Published: April 26, 2021
https://www.click2houston.com/news/local/2021/04/26/lumber-prices-drive-up-new-home-prices/

"HOUSTON €“ Homebuyers, builders, and even DIYers are shocked and stuck with crazy-high lumber prices. The
price of lumber has increased about 180% since last year."
[...]
"Hollins says most new home prices are going up by $30,000 to $40,000 to help builders cover the cost of
lumber. There are several reasons for the increase."

I might be recalling this incorrectly, but weren't you going to build but changed your
mind due to the increased cost? (It may have been someone else)


Soooo the cost of construction materials in a new home is expensive but
not that expensive. I was told by our builder that the materials cost
of the average home was $35K and the average cost of the homes were
$350K. They expected the cost of materials to go up by $12K on our home
so we needed to go into contract to lock in the price. We did but the
builder reneged 2 weeks later. Our builder on average is making $70K
more on a home today than 5 months ago. Do the math.