Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 18 of 18 Posts

·
Registered
Joined
·
1,979 Posts
Discussion Starter · #1 ·
Quite the drop today in the lumber market ...521.00

Last few days I've noticed PT about 1/3 less than SPF at the stores. For a 2x4x8 7.65 vs 4.67

Wonder why that is ? I think its all SP around here.
 

·
Registered
Joined
·
12,871 Posts
Yep. And now those same people are traveling.

I've only had one deck request all year. They know prices are up and aren't even thinking about it.



Sent from my SM-N975U using Tapatalk
 
  • Like
Reactions: Tom M

·
Administrator
Maker of Fine Sawdust
Joined
·
55,750 Posts
If you stop buying it the prices will drop. They have plenty of inventory, they are just holding it back. In a year there is going to be investigations on why the prices got so dramatic and they'll find that they held back inventory to increase prices. They'll be fined but there won't be any relief on the consumer end.
 

·
Super Moderator
Joined
·
28,915 Posts
People get angry about costs here and everyone has legit sticker shock. One lady cried, like sobbed, which I don't really know how to handle. All but that lady do the project anyway, at insane prices. I tell people the new minimum is 200 a sqft under roof, not living, and that's not a super custom or anything it's just basic custom home package. Will have to shop on allowances. So a 2500 sq ft house with a 550 sq ft garage and 600 porches, if you don't want to spend a minimum of 720k, I won't take the meeting. Goes up from there. Last year that would of been 550k minimum.

I also tell them I don't know how much your house will cost or when it will be done. I'm not eating losses like I did all spring, it's your house and your risk. I get 20% on everything, no more fixed cost

My next available initial sales meeting on Calendy is January and design meetings can't begin until May, November 22 is the next start date for anything I haven't already signed

Real estate values are up 36% here, basically keeping up with the overages. Taxes on my properties are up an average of 12% in one year. Rents went up 15%, we aren't a charity.
513959
 

·
Registered
Joined
·
69 Posts
I was in the orange box two weeks ago. The studs were marked manufactured in GERMANY. Hard to beleive but true. Great looking wood as well but it was priced at about bucks a stick. Yes, C-19 has actually not harmed the lumber industry nor slowed the harvest or production. All of that is designed. I don't want to talk about copper prices....made me puke when I saw 350% since Trump left office. Sorry boys but the dems want to kill this country altogether. They won't be happy until we are all unemployed.
Remember that the average wage creates the price of an average home. It is based on 27% of income, and the interest rate amortized at 30 years. Any higher amounts have to be paid CASH or by selling a home, gaining the profit and rolling it over to the new house. Basically, the same things that caused the 2008 Real Estate Crash....housing market too high over the 27% of income at loan rates.
Only two ways to resolve this. 1. Another value crash. 2. Hyper inflation and a reset of US dollar internationally devaluing it. Guess which one the dems want?
 

·
Registered
Remodel
Joined
·
31,175 Posts
If you stop buying it the prices will drop. They have plenty of inventory, they are just holding it back. In a year there is going to be investigations on why the prices got so dramatic and they'll find that they held back inventory to increase prices. They'll be fined but there won't be any relief on the consumer end.
One of the local yards has had stacks of zipwall and Advantech sitting for months. I haven't check their pricing, but you have to know it isn't cheap.
 

·
Registered
Remodel
Joined
·
31,175 Posts
And to think I was taken aback when 7/16 OSB went from $8 to $10.

At these prices, take out a loan to build a shed.....
 

·
Registered
Joined
·
69 Posts
It is time for a federal investigation into this gouging of prices. There is no way that the tens of millions of acres of forests are affected by C-19, nor the loggers and certainly not the truck drivers. The mills are almost completely automated. Either hyperinflation has already hit and this is PERMANENT or some people need to be in PRISON for gouging.
 

·
Registered
Joined
·
508 Posts
It is time for a federal investigation into this gouging of prices. There is no way that the tens of millions of acres of forests are affected by C-19, nor the loggers and certainly not the truck drivers. The mills are almost completely automated. Either hyperinflation has already hit and this is PERMANENT or some people need to be in PRISON for gouging.
You know there are no federal laws against price gouging. State laws are all over the place but most are of the the don’t raise gas prices by double during a hurricane type.


Sent from my iPhone using Tapatalk
 

·
Registered
Joined
·
69 Posts
You know there are no federal laws against price gouging. State laws are all over the place but most are of the the don’t raise gas prices by double during a hurricane type.


Sent from my iPhone using Tapatalk
Actually there is ONE federal law and other supporting federal laws. The one law is regarding fuel and energy prices. The other laws are in regard to interstate commerce. Where ONE state has anti-gouging laws and interstate commerce exists, and or two states have them and commerce exists, the federal government can be directly involved in the criminal prosecution. This involves an interstate criminal acts. Think of kidnap across state lines or any other interstate crime such as that.
It was once said by someone in the FBI, there are so many federal laws and felonies that the average person unknowingly commits at least one every several months. All the FBI needs to do to get a particular target is to wait and watch.
 

·
The Dude
Joined
·
2,411 Posts
Price gouging arguably isn't even real. Prices are dictated by markets. When a hurricane hits down here, as soon as the state freezes prices, the gas runs out. Because you can't pay truckers enough to truck it in. I'd rather pay 10 bucks / gal for fuel than be stuck run out of gas 500 miles from home trying to get out of state.

Who is gouging the price? When the stuff isn't selling - why isn't another company capitalizing on that with lower prices that will sell more? Would you feel the same about sending people to prison for price gouging if they applied it to say - contractors? Those damn contractors charging 200 / sf to build a tract home - it's CRIMINAL I tell ya! They should go to prison for that!

We'd all be out of business or in prison right now.
 

·
Registered
Joined
·
69 Posts
Price gouging arguably isn't even real. Prices are dictated by markets. When a hurricane hits down here, as soon as the state freezes prices, the gas runs out. Because you can't pay truckers enough to truck it in. I'd rather pay 10 bucks / gal for fuel than be stuck run out of gas 500 miles from home trying to get out of state.
The issue is that you do not understand what price gouging is or what production or price collusion is. If an industry suddenly through INTENT decides not to be competitive and begin to match higher prices to increase profits that is price collusion, it is a form of illegal gouging federally and in every state. If an industry with or without its heads talking together over golf, decides that under the political and economic crisis that exists they should reduce production and cause a fake shortfall of product to increase price, that is production collusion and a FELONY both federal and state in general. Any time there is a declared emergency of ANY kind, federally fuel prices are fixed by law. Any increase has to have proven cause outside of the ability of the industry to control.
Your example of truckers bringing fuel is a good example to discuss. Spot values for drayage change, yes. However a truck can fill in Alabama or Mississippi and drive over 1200 miles without refuel. The ONLY question is how much time it takes the driver and will he deadhead back. After a hurricane a lot of deadheading happens as well as slower driving. That increases the costs of everything including fuel. However, ALL legislation allows a non-controllable cost to be added to product. Therefore if delivery of a tanker of fuel was $800 and now is $1500 and deadhead return is $1000: the total difference in cost for each gallon is 2500-800/10,000 gallons= .17 per gallon. When one sees increases like 1.25 per gallon they know they are being fleeced.
I understand you like free market, but believe me there is no difference in how long it takes to fill the pipe line, the difference is whether the wealthy are the only ones that can afford to survive. That would be repugnant on its face.
 

·
Registered
Remodel
Joined
·
31,175 Posts
Good luck looking at retail price and figuring this out.

Price at mill to wholesaler is supply and demand.. Pretty much the same wholesale to retail. Retail is a different beast, short term. FIFO or LIFO accounting impacts how quickly price changes show up in retail.

Supply chains may run to inventory levels plus projected customer demand to set demand.
 
1 - 18 of 18 Posts
Top