Hi Friends,
Today's market headlines were all about earnings beats (there were some big beats) and shortages - both for Lumber and microprocessing chips.
The lumber shortage is being called poor planning as outsized demand for wood (lots of residential construction) and supply constraints, exacerbated by covid, have made demand increase at a greater rate than supply.
To me, this also signals that home price increases we have been seeing are mostly warranted. Low interest rates make higher home prices affordable, and increasing costs to build make existing homes more valuable.
I have a few friends who sold their houses and started renting because they wanted to cash in on their equity and rebuy something better but wanted to wait for home prices to drop. Many months later, they are priced out of the market they really wanted and now stuck renting as they are unhappy with their options and any houses that come to market get swooped up immediately by all cash buyers - it is ruthless out there.
Has this been your experience as well?
Thanks for coming by,
Brian
Note: image courtesy of pixabay.com
The price of wood is increasing, hopefully the pandemic will pass quickly, so that people can enjoy a decent life @brian. rrr
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Agreed, hopefully it will be over soon!
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Hi...
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Hey there!
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Nice day
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The price of wood is increasing daily. But good quality wood should be purchased.
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Yes, that makes sense to me!
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The market is crazy here in AZ. I can sell my townhome for nearly 300k. Of course, I bought near the peak in 2006 and didn't short sell so I lived through the dark days when my house value fell from 186K purchase price to around 58k. I wish I had money to buy more of the townhomes then! So many people are listing for 15 to 20k over Zillow price, and then people are offering 15 to 30k over that even. Crazy!!
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Wow, that is crazy that the prices are going so much over asking price!
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Totally crazy!!
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Houses are now going for double over asking price here in Ontario.... you put something up for $900,000 and you get $2 Million. And people are paying with Cash. People are using their gains from Shopify and Tesla stocks.
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Suddenly Everyone is a Billionaire here in Canada. It’s from the Stock Market, everything is up. Everything.
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