Hello! What are the extortionate prices for timber really due to now? In the summer of 2019, 28x120 decking cost 12.95kr/m... saw that it is now 24.95kr... at Byggmax. Completely unreasonable. Is there any point in expecting them to return to normal by this summer?
Energy prices have gone up significantly since then.
Trucks transporting timber and sawn wood need Diesel and the sawmill needs electricity.
It's then about supply and demand...
Trucks transporting timber and sawn wood need Diesel and the sawmill needs electricity.
It's then about supply and demand...
Yes, they will return to normal prices. The question is just what the new normal prices will be.
Yes, timber prices for consumers might be normal now, as a forest owner, I want more payment for the timber otherwise it will stand for growth. Transport and industry have significantly higher costs now than just a quarter ago.D Daniel 109 said:
S
SueCia
Electronics enthusiast
· Dalarna
· 5 520 posts
SueCia
Electronics enthusiast
- Dalarna
- 5,520 posts
It's quite simple. To implement the corona measures, enormous amounts of money were required. Governments could have financed this with increased taxes, but it's difficult to get voters to agree to a tax increase of about 33 percentage points without causing riots.
The alternative is to deceive the voters instead. You let them partake in enormous amounts of free money financed by printing new money. When the money supply is increased by 30%, the value of all existing money and wages is reduced by 30%.
In other words, a tax increase unprecedented in the history of the Western world has been implemented, and the only thing people say is, "Wow, everything has become so expensive now..." when they should really be thinking, "Wow, my money has lost value."
The alternative is to deceive the voters instead. You let them partake in enormous amounts of free money financed by printing new money. When the money supply is increased by 30%, the value of all existing money and wages is reduced by 30%.
In other words, a tax increase unprecedented in the history of the Western world has been implemented, and the only thing people say is, "Wow, everything has become so expensive now..." when they should really be thinking, "Wow, my money has lost value."
Then a clear disadvantage is that much of what we have in the construction trade is imported - We are not the ones manufacturing materials like OSB and Plywood. A lot of what is sold cheaply is imported - Shipping, various restrictions make everything more expensive. Construction materials have probably never sold at such a pace as during the pandemic when the population "worked" from home. So evidently, we still buy, despite the high prices…. I think it will go down, somewhat, but never to the same low levels.
Yes, absolutely supply and demand, but with these prices, demand can't be that strong, can it? But is it that the wood is preferably sold abroad where they get paid more?Huddingebo said:
Interesting, thanks!S SueCia said:
Ok so yeah... of course, a lot has been built during covid... everyone probably has a new green deck in front of the house now?slacker said:
But I'm thinking this summer with these prices should make a difference then? Because personally, I don't pay those prices now unless I have to... and many home projects are not necessities, so you probably spend the money on something else instead. Unless the timber industry comes out and says these doubled prices over 2 years are what's going to apply from now on... then you have to rethink and simply bring out the big wallet when you shop for timber in the future.Yes, everyone wants more... of course! And everything is increasing in price, inflation, etc., but a doubling in 2 years is not reasonable? But yes, the question is then what the new price will look like when demand decreases...F fribygg said:
Well, I've never seen so many constructions of decks, conservatories, and pools as I did in the summer of 2021, and we had the same high prices then. So demand has rather just increased. Now the market has learned that customers are willing to pay the current prices without issue. Retailers will surely keep these prices, push down the price from suppliers when it turns again, thus significantly increasing their margins.G MrGlad8 said:
Like now?G MrGlad8 said:
Diesel is 30% more expensive and electricity can on some days be 10 times more expensive than before
Possibly pressure-treated wood may vary even more in price than in the last 3 years.
House prices are at normal levels, it's more likely that villa prices will go up 50% within five years than drop more than 10% during the same period.ÅkeSun said:
Timber prices probably won't go down until house prices return to "normal levels"
I hardly think that house prices in Sweden's most densely populated areas will either increase by 50% or plummet drastically.
Rather, they will move +- 10%.
Rather, they will move +- 10%.