38,598 views ·
64 replies
39k views
64 replies
Sharp increase in building material prices!
It depends on what you compare it to. Compared to 12 months ago, it might be 100,000 - 200,000 more expensive. But that is no longer relevant. Compare it to 12 months into the future instead. Then MAYBE it's 10,000 - 20,000 (note! A wild guess on a high level).
I have personally realized in our new construction plans that there is no point in dwelling on what has been. If you have the finances and believe it's worth the cost, then go for it. BUT be sure to address the point about materials in the contract. If you agree to pay more if prices increase, it can also be turned around. That is, if you agree that the materials are purchased continuously and that the contractor has an agreed markup on this.
I have personally realized in our new construction plans that there is no point in dwelling on what has been. If you have the finances and believe it's worth the cost, then go for it. BUT be sure to address the point about materials in the contract. If you agree to pay more if prices increase, it can also be turned around. That is, if you agree that the materials are purchased continuously and that the contractor has an agreed markup on this.
Well, prices will certainly go down more. They're not at reasonable levels now.
E EI30-SaC said:It depends on what you compare with. Compared to 12 months ago, it might be 100,000 - 200,000 more expensive. But that's no longer relevant. Compare with 12 months forward in time instead. Then MAYBE it's 10,000 - 20,000 (note! High-level guessing).
I have personally realized in our new construction plans that there's no point in dwelling on what has been. If you have the means and think it's worth the cost, then go for it. BUT be sure to highlight the point about materials in the contract. If you agree to pay more if prices increase, it can also be turned around. That is, if you agree that the materials are purchased continuously and the contractor has an agreed markup on this.
I partially think that one can consider what you get in ROT deduction as what the prices have increased and then it becomes plus minus.E EI30-SaC said:It depends on what you compare with. Compared to 12 months ago, it might be 100,000 - 200,000 more expensive. But that's no longer relevant. Compare with 12 months forward in time instead. Then MAYBE it's 10,000 - 20,000 (note! High-level guessing).
I have personally realized in our new construction plans that there's no point in dwelling on what has been. If you have the means and think it's worth the cost, then go for it. BUT be sure to highlight the point about materials in the contract. If you agree to pay more if prices increase, it can also be turned around. That is, if you agree that the materials are purchased continuously and the contractor has an agreed markup on this.
We will probably go ahead as soon as possible since I can't wait any longer... had planned to start building already last fall... :/
However, it feels a bit sad to have to pay 100k extra or more... would have wanted to spend that money on some more fun details in the home
Prices in the USA have plummeted to levels around what one might call normal seasonal variations for many materials.
Here, one might get the impression that forestry companies are taking the opportunity to exploit the situation properly instead of increasing production. (Which is what happened in North America)
Here, one might get the impression that forestry companies are taking the opportunity to exploit the situation properly instead of increasing production. (Which is what happened in North America)
The forest owners have not reduced the logging, but they are not getting paid more than before. The bottleneck is the sawmills, they are the ones making record profits right now.
I don't think we will see a significant price decrease anytime soon for wood. And if we talk about concrete, steel, fasteners, joinery, windows, doors, paint, etc., prices will rather continue to increase.D Daniel 109 said:
No, that's how it always is, but it would have also been fun to buy houses 10 years ago, bought bitcoin early, decking last year, etc., but that makes no one happy. My best advice is to pay and forgetD Dalapagen said:I partly think that one can think that what you get in ROT deduction is what the prices have gone up and then it becomes plus minus.
We will probably go ahead as soon as possible, as I can't wait any longer... had planned to start building already last autumn… :/
However, it feels sad to have to pay an extra 100k or more... would have liked to use that money for some more fun details in the home![]()
a bit my philosophy too... do I want to be satisfied with the living situation today or have to wait and be in a bad mood for another year or more?!E EI30-SaC said:
If we had a functioning market, prices would have already dropped since a major reason for the price increase was that the timber was sent to the USA instead of Swedish customers. There, the price has collapsed to pre-covid levels for dimension lumber, but prices here still don't decrease. Probably because people are still paying the current prices, believing they won't go down.
An acquaintance who works at a sawmill in Sweden doesn't know how long he will keep his job as they have full inventories and very little to do right now.
An acquaintance who works at a sawmill in Sweden doesn't know how long he will keep his job as they have full inventories and very little to do right now.
It must have gone very quickly from empty to full. If that's true, prices are likely to soon dive down to normal levels.
I drove past a sawmill in the morning. They seemed to have full stocks both of timber and finished goods. So it seems to be true that the warehouses are full.
What do you think about Danske Bank's prediction? They forecast a decline of 25-40%:
https://sverigesradio.se/artikel/rejal-vandning-efter-rusningen-sa-mycket-spas-virkespriserna-ga-ner
We are set to finalize all choices tomorrow before ordering our house in two weeks, so inputs like this are quite difficult to evaluate. From the house supplier, we have a material package for 2.5 MSEK, so it can have a significant impact. On the other hand, we have a road permit expiring at the end of February, so waiting also has consequences. Those of you with more insight, what is your assessment - are larger reductions likely?
https://sverigesradio.se/artikel/rejal-vandning-efter-rusningen-sa-mycket-spas-virkespriserna-ga-ner
We are set to finalize all choices tomorrow before ordering our house in two weeks, so inputs like this are quite difficult to evaluate. From the house supplier, we have a material package for 2.5 MSEK, so it can have a significant impact. On the other hand, we have a road permit expiring at the end of February, so waiting also has consequences. Those of you with more insight, what is your assessment - are larger reductions likely?
