Crazy Inflated Home Construction Costs?

[texan4ut]

Don't see it anytime soon if ever. I would go ahead and get your build under contract before things go up anymore. I have been a real estate appraiser for over 35 years and I have never seen anything like what is going on. Just got an appraisal assignment in with list price of 349,900 and a contract for 450,000. 5 days on market. Here is a list of a few sales in a very small area in Austin. Multiply these 10 fold and that is the market in the Austin area. Look at the list price vs sale price. Just stupid crazy right now.

[BrianL]

Remember all those Trump tariffs? That is a huge part of this.

[Troutamer]

Im just curious what its gonna take for people to start living within their means.
We just moved into a 800 sq ft living area in a pole barn we built with cash from selling our house on some land we bought a couple of years ago. Yes it is small and nothing fancy and we dont drive fancy vehicles but they are paid for and I am blessed to make a good living. People would be so further along to learn to live within their means (its easy to do) and find their joy in Jesus instead of a big house and a new F250.

Stepping off my soap box

[salth2o]

I recently tore out my old deck and was planning on replacing it this spring. Wood prices have put a halt to those plans right now. Just crazy.

I'm not sure what I'm going to do now. I have a mud pit that my dogs and kids love, but my wife is not a fan....

[DedDuk]

Theee will be a lumber price drop in the next 2-3 weeks but it won’t be back to normal.

At the mills at least, no clue what retail will do.

Thought process?

[texan4ut]

Remember all those Trump tariffs? That is a huge part of this.

Not true tariffs were removed when the USMC trade deal was made. Lumber shortage from Canada is mostly due to Covid as many lumbering operations were suspended by the Canadian government. Pipeline dried up so now they have to basically get the trees down and to the mills. Takes time.

[SB09]

Remember all those Trump tariffs? That is a huge part of this.

Yea.... That's categorically false. Reading dates on articles is important.

[bboswell]

Thought process?

Came from a senior employee at UFP. I’m not gonna claim to understand the why.

[DedDuk]

Came from a senior employee at UFP. I’m not gonna claim to understand the why.

Not arguing, I hope you're right. Im buying lumber for a house build in the next few weeks. If prices have not dropped by then, Ill tell them Mr. Boswell said they were suppose to.

[bboswell]

Not arguing, I hope you're right. Im buying lumber for a house build in the next few weeks. If prices have not dropped by then, Ill tell them Mr. Boswell said they were suppose to.

Lol. Good luck with that

[175gr7.62]

Don't see it anytime soon if ever. I would go ahead and get your build under contract before things go up anymore. I have been a real estate appraiser for over 35 years and I have never seen anything like what is going on. Just got an appraisal assignment in with list price of 349,900 and a contract for 450,000. 5 days on market. Here is a list of a few sales in a very small area in Austin. Multiply these 10 fold and that is the market in the Austin area. Look at the list price vs sale price. Just stupid crazy right now.

So are the appraisals on these sales matching the offers are are people pulling the extra money out of their accounts? I can't believe many folks have an extra 100k sitting around to make up the difference.

[Eastwood]

If houses are selling for much more than asking so often, why aren't sellers starting out higher? I have no experience in real estate, so I always thought that was odd.

[jer_james]

If houses are selling for much more than asking so often, why aren't sellers starting out higher? I have no experience in real estate, so I always thought that was odd.

This is new territory - I have mentioned before, but the neighbors listed for $60k over what they listed at last Summer. They still got multiple offers and bids.

Market is being reset.

[BrianL]

Yea.... That's categorically false. Reading dates on articles is important.

https://www.reuters.com/article/us-usa-trade-vietnam/u-s-says-plywood-imports-from-vietnam-may-circumvent-duties-on-chinese-goods-idUSKBN23H2YD

https://www.nytimes.com/2018/06/11/business/dealbook/trump-tariffs-canada-lumber.html

https://www.wsj.com/articles/world-trade-organization-sides-with-canada-in-lumber-dispute-with-u-s-11598294456

https://www.constructiondive.com/news/agc-asks-biden-for-relief-from-soaring-lumber-prices/595412/

[Chad C]

https://www.reuters.com/article/us-u...-idUSKBN23H2YD

https://www.nytimes.com/2018/06/11/business/dealbook/trump-tariffs-canada-lumber.html

https://www.wsj.com/articles/world-t...-s-11598294456

They could boost production in Canada. Just sayin'