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Material Prices for Homebuilders Are Climbing So Fast That Builders Are Adding Escalation Clauses to Sales Contracts
EconomicPolicyJournal.com ^ | May 18, 2021 | Robert Wenzel

Posted on 05/18/2021 11:56:37 AM PDT by PPSman

Housing prices are soaring and there appears to be no end to the advance. Prices are now accelerating at the fastest rate in over 15 years.

A combination of lockdown-related bottlenecks, limited labor availability (thanks to over-the-top unemployment payments that give potential workers incentive to just stay home) and, most significant, massive printing of money out of thin air by the Federal Reserve.

In a monthly sentiment survey of builders, they reported higher costs for lumber, steel, gypsum and copper, some of which have hit record highs this year. Not to mention the limited labor. Construction employment stalled in April and actually fell below its pre-lockdown peak, according to the Bureau of Labor Statistics.

So what are homebuilders doing in cases where a home is sold but not completed?

(Excerpt) Read more at economicpolicyjournal.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: houseprices; inflation; wboopi
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1 posted on 05/18/2021 11:56:37 AM PDT by PPSman
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To: PPSman

Have heard of one case thus far. The increase was 45k


2 posted on 05/18/2021 11:59:27 AM PDT by no-to-illegals ( Liberals, leftists, Rinos, moslems, illegals, lamestream media. All want America to fail and die )
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To: PPSman

This is what you do in a world of hyperinflation.


3 posted on 05/18/2021 12:01:33 PM PDT by cuban leaf (We killed our economy and damaged our culture. In 2021 we will pine for the salad days of 2020.)
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To: no-to-illegals

Cripple new house builds. Cause existing homes to spike in price even further. For those of us in Texas, a corresponding property tax bill that will start to spiral out of control.


4 posted on 05/18/2021 12:01:36 PM PDT by CatOwner (Don't expect anyone, even conservatives, to have your back when the SHTF in 2021)
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To: PPSman

I’m getting old. My next house will be a one-story or else it will have one of them Escalator things.


5 posted on 05/18/2021 12:02:34 PM PDT by ClearCase_guy ("I see you did something -- why you so racist?")
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To: PPSman

Won’t need to worry about this for very long....


6 posted on 05/18/2021 12:06:25 PM PDT by fuente (Liberty resides in three boxes: the ballot box, the jury box and the cartridge box--Fredrick Douglas)
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To: PPSman

Just had a new roof intalled on my office building yesterday. The guy we used buys 5 semi truck loads of popular shingle colors each winter.

He quoted me the job back in January and I figured he would hit me up with a sad story yesterday about rising shingle cost but he kept the quote because he bought last winter.


7 posted on 05/18/2021 12:07:27 PM PDT by setter
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To: fuente

why? what do you think will happen?


8 posted on 05/18/2021 12:08:23 PM PDT by spacejunkie2001
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To: PPSman

It’s easy to fight inflation. Just buy less. I was going to put up a wooden fence this spring. I have no problem waiting till next year now. That’s how you fight inflation.


9 posted on 05/18/2021 12:08:49 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: PPSman

At this rate, the scrap lumber in my garage will be valuable barter.


10 posted on 05/18/2021 12:08:53 PM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: PPSman

Maybe scr** those stupid owls and reopen the forests to lumbering. Of course that would be common sense. Burning takes the wood down faster. Good thing the burning doesn’t add any of the no nos to the atmosphere. s/


11 posted on 05/18/2021 12:09:02 PM PDT by Sacajaweau
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To: PPSman

Referb an old army ammo bunker and paint windows on the walls. May be a bit drafty but you can park your car inside at night.


12 posted on 05/18/2021 12:11:00 PM PDT by Liaison (TANSTAAFL)
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To: CatOwner

Yup...just thinking about that myself.

Housing prices spiking right about now, isn’t a good thing.


13 posted on 05/18/2021 12:11:02 PM PDT by EBH (Republics are only meant for a good and moral people. 1776-2021 May God Save Us.)
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To: CatOwner

Fully agreed


14 posted on 05/18/2021 12:11:45 PM PDT by no-to-illegals ( Liberals, leftists, Rinos, moslems, illegals, lamestream media. All want America to fail and die )
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To: no-to-illegals

My brother’s new house south of Fort Collins has increased $90 K over the past 6 months.


15 posted on 05/18/2021 12:12:25 PM PDT by Man from Oz
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To: PPSman

lumber futures prices are currently about 30% off the highs of last week ... locked limit down ... again ...


16 posted on 05/18/2021 12:14:32 PM PDT by bankwalker (groupthink kills ...)
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To: PPSman

I work the northern half of NJ for a LARGE cabinetry company (production builders).

Right now, the volume is insane! I’m going insane because of it.

Supply chains are broken. Builders cannot get the basics - windows, doors, stairways, etc.


17 posted on 05/18/2021 12:14:41 PM PDT by nesnah (Infringe - act so as to limit or undermine [something]; encroach on)
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To: ClearCase_guy

My father told me for years to buy a single story when I got older

Sure glad now that I took that advice


18 posted on 05/18/2021 12:15:22 PM PDT by digger48
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To: PPSman

I was quoted $14,000 for a new driveway- and it’s a short driveway. The contractor told me the price of concrete has skyrocketed..


19 posted on 05/18/2021 12:16:38 PM PDT by Bon of Babble (Rigged Elections have Consequences)
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To: spacejunkie2001

Housing collapse.


20 posted on 05/18/2021 12:16:56 PM PDT by fuente (Liberty resides in three boxes: the ballot box, the jury box and the cartridge box--Fredrick Douglas)
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