6 reasons to wait for renovation due to the high cost of wood

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home renovation no way cheap. But soaring timber prices make this statement particularly painful.

Due to the shortage of wood, your daily price of 2×4 has exceeded the price of burritos. It may not sound like much, but just a year ago, you could buy a 2×4 for around US$2 to US$3. What is the price of today’s burrito? About 7 dollars, there are more fixed accessories.

You can be creative, and you can save labor by rolling up your sleeves and doing the work yourself, but you still have to do it yourself. In Alaska, some witty DIYers even polish their own things for their own projects. For most of us, this is not a viable approach, but times of despair require wise measures.

Thomas Jepsen, founder and CEO Passion Project, Which is a digital platform used for housing plans, blueprints, etc., the company said that the price increase caused the price of new single-family homes to rise by about $25,000. Although the analysis of experts varies, most people in the industry believe that wood prices have soared by 200% to 400%.

In mid-May, timber futures prices fluctuated sharply, and high prices suppressed demand. But even then, there is still not enough wood for engineering projects.

In order to understand what rising timber prices mean for homeowners who are considering renovations and potential buyers who are considering building new homes, we sought insights from industry experts. Their suggestions also indicate that waiting for renovations may be a good idea.

Why is the price of wood so high?

Part of the reason for the increase in timber prices is the popular TV house renovation show and the inspiration for millennials to buy historic old houses and plan to renovate and update. Due to the pandemic, working, going to school and just being more at home have also attracted more demand for home projects.

Moreover, if Americans do not renovate their houses, they will take advantage of historically low interest rates and build their dream houses from scratch.

However, renovation and construction of houses are only part of it. In addition, factories and factories were closed due to quarantine and state orders, which in turn led to supply chain problems and reduced timber production. there are more.

“To be honest, if I had to propose a semester now, I would call it the’perfect storm’,” said Jepsen, who has been doing home renovations for ten years. “The rampant beetle has caused severe damage in Canada. Everyone wants the construction industry to stop production due to COVID. That’s why the supply is subject to additional restrictions.”

Are the beetles infested?

For decades, Canada has suffered a large-scale outbreak of pine beetles that feed on bark, which has severely destroyed the harvest of trees planted specifically for wood. And because a plague is not enough, British Columbia has also witnessed an increase in wildfires.

According to data from the International Forest Industries Corporation, Canada is the world’s second largest exporter of softwood, after Russia, which ranked first last year. The loss of forests is one of the reasons why Canada moved to the second place.

Jepsen said: “This is an unprecedented era.” “Many projects have been cancelled and suspended. I have seen large houses covered with tarps because when the contractor refused to fulfill the potential of rising timber prices. Sometimes they stop when they contract.”

When will timber prices fall?

If there is a rise, there will be a fall. Unless it is the price of wood.

This is not to say that timber prices will not fall at all.

Jepsen said: “Timber prices will fall.” “Supply will increase, DIY employees will return to the office, and the situation will recover. However, the impact of beetle infestation is very real, and warming climate will increase the impact of wildfires. The same is true, I suspect that we will see wood fall to pre-COVID levels.”

Jepsen is not alone. Most experts agree that the price will drop, although they cannot reach a consensus on the timetable (An analyst said that 18 months; Another person said that this summer).

Among all the forecasts, one thing is still clear: prices may fall, but we will never see wood prices before the COVID again.

How to save money in high timber prices

The increase in timber prices does not mean that you have to cancel your dream of buying a new house or undertaking a house renovation project. You may only need to change the strategy.

For example, if you are considering a house renovation, let your contractor or architect be creative.

Jepsen said: “We have seen and used some creative methods to use recycled wood as much as possible.” “We have purchased a lot of these items through Craigslist, otherwise we can help when the building is demolished. Some of them. It can be saved and reused.”

You can also consider Other, no wood Phillip Ash, the founder of the company, said that you can solve the renovation project Professional paint area.

He said: “I suggest you take care of any bathroom work you want to do during this period, or use the summer time to do some beautification work to make the outside of your house look new.” “The simplest and most influential house renovation project. One is to provide new exterior and interior paint colors for your house.”

Why you should wait for renovation

Last September, we bought an old house and climbed more than 30 steps from the street to reach the front door. Although the shape is good, the days of the roof deck carved out of the attic in the 90s are better.

Our goal is to remove all decaying wood and start from scratch this spring. The estimated cost of this type of renovation is approximately US$15,000.

but now? The contractor said it could easily reach $30,000, not even including the awesome new grill I promised myself.

Needless to say, we have decided to postpone the project for at least one year and hope that our feet will not hit the rotten wood while enjoying the deck this summer.

In Gibson’s view, this is a wise choice, not only because of the shortage of wood, but also the worrying shortage of electrical appliances and rising steel prices, coupled with the high labor costs of demanding contractors.

He said: “The homeowner has done a good job in deferring the one-year refurbishment work if possible, which will also help increase the price of home appliances.” A better position, because the impact of stimulus funds will subside.”

Gibson’s suggestion seems to reflect how many homeowners feel. According to a recent poll in the journal “International Wealth Research”, nearly four in ten prospective DIYers have postponed the project due to soaring costs.

But this does not mean that DIY has completely stopped. In May, Ted Decker, President and CEO of Home Depot, said in a revenue call about DIY customers: “The strong demand we saw in the second half of last year continued in the first quarter. From gardening and organization to the present, new and old customers are engaged in home improvement.”

When asked about the specific situation of the wood shortage in the Q&A session, Decker said: “The price of a piece of OSB (engineered wood) has tripled, and since the end of the fiscal season, the increase has been even greater. But at the same time, demand is demanding. Keep up with the pace.”

It’s worth mentioning that Jepsen did it Is not Proposal to postpone the construction of new houses: “We have seen that the rapid rise in house prices has had an impact on the market, and they will certainly rise. Building houses are still investing in assets that are bound to appreciate over time.”

6 reasons to wait for renovation

Still not sure whether to renovate this year or wait? According to the following six reasons that experts told us, you should step on the brakes when doing home renovation:

1. The price may fall

The jury may not be there When, But the prices of wood and home appliances will fall again. Although they are unlikely to return to the pre-COVID era, they should at least be reduced to more affordable prices than today’s high costs.

2. You will have more time to save

If you postpone the renovation for a year, you can invest wisely. Put into a high-yield savings account To increase interest, or if you can wait a few more years, please consider Take the bond road.If you are a high-risk, high-return gambler, you can even Invest funds in the stock market. Despite its inherent risks, the average annual return on the stock market is often about 10%.

If you plan to pay for some renovation projects and raise funds for the rest, then this might be a way Reduce the amount you have to borrow from the lender When the time is right.

3. The contractor is now arranging a long time

We are putting windshields on our historic wooden windows to help insulate them (and provide us with easy-to-use screens in the warmer months). We paid the deposit in early May, and the company has promised to start work in mid-August.

That was not an isolated experience. Due to the high demand, the contractor is planning for a few months. If your renovation involves multiple contractors (masons, plumber, Electricians, carpenters, etc.), coordinating their schedules may be impossible and may leave your house out of the construction area for several months.

4. The threat of COVID-19 will decline

As the number of Americans getting vaccinated every day increases, it makes sense to postpone renovations. By next year, if all goes well, we will gain immunity to the herd and you will feel more comfortable with contractors working in your home without a mask.

5. Consider the quality of work

New houses were flashy when they were first built. However, because some developers use cheaper materials and contractors are eager to develop as many houses as possible within a tight time frame, buyers often find that the honeymoon period for their newly built houses will not last long.

After the real estate boom in the early 2000s, ten years later, Reinventors are beginning to see an increase in defects In a house that was quickly built during that time.

I want to believe that most contractors will recommend high-quality materials and do thorough work. However, when the supply is insufficient and the contractor’s demand is strong, there is an inherent risk that workers may take shortcuts on your renovation project and cause work. Quality is reduced.

6. You may avoid buying on impulse

Decoration is thing immediately. As you scroll endlessly, seeing everyone’s Instagram posts about their new kitchen and bathroom will arouse your cravings. However, by giving yourself a year to consider refurbishment, you can decide whether you want to spend the money.

If after a year, you are still willing to spend $20,000 on a new kitchen, then you will be more confident in spending the money.

Timothy Moore is the executive editor of WDW Magazine and a freelance writer and editor. His topics involve personal finance, travel, career, education, pet care, and automobiles. He has been working in this field since 2012 and his books include The Penny Hoarder, Debt.com, Ladders, WDW Magazine, Glassdoor, Aol and The News Wheel.




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