July, 27, 2013
The housing market recovery, started late 2011, is now turned into an aggressive seller’s market with multiple offers at almost every price range. Bubble or not, it is positively effecting the construction industry that downsized during the housing bust. First, the increase in home prices creates equity for existing home owners, allowing them more funds for desired projects. Second, most new buyers tend to remodel their new home to better fit their needs. And finally, more and more people are back to “flipping” homes as the main source of income.
Unlike finish materials, most rough materials can not be substituted with cheaper quality temporary solutions (to be replaced in better times). The foundation, framing, electrical, plumbing, roof, etc… are there to stay for many years!
Building materials price have been vulnerable to market forces in the past!!!
In my opinion, it is only a question of time, before materials cost will take a sharp turn north, catching up with the increasing housing market.
Orange Innovation Inc.