Where are you building?
The wood prices are coming down (hallalujah!) because we finally popped the wood bubble. People decided they weren’t going to move because they couldn’t afford to build. But we’ve seen nothing but price increases coming down the pipe, and the average customer has no idea they are going to hit them yet. Availability is already tanking…the lead out on appliances, china, pipe, and things like water heaters is bad now, and will get worse. For at least a couple of years or more.
Keep a really close eye on your costs…I’m afraid the consumer price is going to pull a kangaroo within a month or two. I know, I’m not guessing…we’ve been coding the price sheets for the wholesalers. As they sell whatever inventory they have on hand, the price is going to jump. We’ve been hit with 25 price increases in the last couple of months for the few lines that we represent, and the prices have jumped from 12% to over 200% on the different products. (Wholesale…the consumer price will be higher. And that’s before considering shipping costs…a container has jumped from $1500 to over $10,000. For one miserable freaking container.)
Really rough numbers:
20-30% increase on steel, metal and iron (appliances)
40% increase on water heaters, and low availability (limiter is the foam insulation which got creamed during the TX freeze.)
200% increase on PVC pipe/fittings/ plastics (including acrylics)
12% increase on china (now is a good time to pick out your toilet and lavatories, but those will be hit by the shipping costs.)
I wouldn’t want to try to build a single family dwelling right now…the things needed might not be available if it hasn’t already started. Priority is currently directed to multiple family units like apartments or condos, to house the families who will be displaced due to the shut downs. (Expected as soon as Biden lifts the restriction on mortgage holders…people will be getting turfed. They will need a place to live. Builders know this, and they are focusing on multi-family units now…they have to be ready before it happens. Going to be exceptionally bad in and around larger cities.)
Granted, this might just be in the Texas area, because we’ve had a tremendous flood of incoming transplants. Might be better in a small town.
I’m just tired these days.