another story from in the field:
So, some/a lot of contractors get an estimate signed and (to lock in the prices that they quoted) get the materials ordered at the prices that they are at today. This means the Window mfg needs to make these windows now and sit on them (because the prices might be going up tomorrow on the panels)
This leads to a huge warehouse of windows just sitting there, to put into a house, in 8 months from now.
And another warehouse with lumber stacked up, waiting 8 months till they build it.
And another warehouse with X items in it - and so on and so forth....
Smell the problem yet?
Due to the demand to lock in prices, they can't make enough to fulfill current demands (the guy off the street, the repair guys, etc...) which drives up the prices even further...
My thoughts - I could (and hope I am) be wrong: At some point there is going to be a "correction" in the market prices and it will be cheaper to give up the downpayment that companies got for the materials, and get a new company to do the actual building (with the lumber that's priced lower, obviously) than to use the sitting lumber at the old prices.
yikes... Just thought I'd share what I'm hearing.
So, some/a lot of contractors get an estimate signed and (to lock in the prices that they quoted) get the materials ordered at the prices that they are at today. This means the Window mfg needs to make these windows now and sit on them (because the prices might be going up tomorrow on the panels)
This leads to a huge warehouse of windows just sitting there, to put into a house, in 8 months from now.
And another warehouse with lumber stacked up, waiting 8 months till they build it.
And another warehouse with X items in it - and so on and so forth....
Smell the problem yet?
Due to the demand to lock in prices, they can't make enough to fulfill current demands (the guy off the street, the repair guys, etc...) which drives up the prices even further...
My thoughts - I could (and hope I am) be wrong: At some point there is going to be a "correction" in the market prices and it will be cheaper to give up the downpayment that companies got for the materials, and get a new company to do the actual building (with the lumber that's priced lower, obviously) than to use the sitting lumber at the old prices.
yikes... Just thought I'd share what I'm hearing.
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