Raymond Henson, eXp Realty, Realtor (eXp Realty of California, Inc. (lic. #01878277))

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Diana Zaccaro
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

It's not just new construction here but also remodeling since during the shutdown a lot of people used that time to remodel either their home or business. That caused prices to skyrocket a few months ago and things like appliances are in short supply unless you can be flexible about what you want.  My understanding is that it is not really a shortage of materials so much as a lack of people who want to work and that is disrupting the supply chain. From the time the extended unemployment comp benefits ends and people have to go back to work, best case is predicted to be a year but that could change depending on what happens with hurricane season this year. We are seeing a run on people buying shutters since the price of plywood is outrageous if you can even find it.

 

Jun 03, 2021 12:12 PM
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I do a lot of new construction and it's the same here. Thankfully, all my new construction projects have and will close on time.

Jun 03, 2021 09:32 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Same here for remodeling.  Reduced supply due to restrictions on businesses imposed by the government, increased demand as people spend more time at home.  Fewer people working due to making more on unemployment.  Most estimates I hear say if we went back to full production tomorrow, it would be 1-2 years before we got back up to normal production.

Jun 03, 2021 10:28 AM
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I have seen that here in Charlotte as well but, I do believe this will be short-lived. Too many folks are ramping up businesses that were shut down for 15 months. It's going to take them awhile to catch-up but, I do believe it will happen.

Hey, on an even brighter note, this opens the door to creative entrepreneurship. Those who lost their businesses can step-up to the plate and start new ones to help fulfill these needs, much like the distilleries did with hand sanitizer!

Jun 03, 2021 10:10 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I waited 6 months to get a refrigerator. Three months for a washer and dryer.

The impact will be short-term. Things will catch up.  When?  Only time will tell. 

Let's hope when the incentive to not work ends that will be the beginning of filling the supply chain. 

Jun 03, 2021 10:31 AM
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Steve Higgins
RE/MAX Kelowna - Kelowna, BC

It's bad up here in Canada too. There is a shortage of resin so anything made with resin is on back order for months. So it should prove interesting for home builders and all trades.

Jun 03, 2021 06:31 PM
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Long term.  Our way of life is changing for the worse, thanks to Washington, D.C.

Jun 03, 2021 03:15 PM
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Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

It's been going on here for 4+ months. It's not getting better, and many builders are saying it will be a long slow recovery. Some builders have held off on new home starts, and are only doing the concrete basements and will let them sit until materials become available and prices come down.

Jun 03, 2021 11:04 AM
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Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

The builders in our area are quoting a 22 month delivery time +/- . Maryland's Governor Hogan just announced he is ending the expanded federal unemployment to get people to go back to work, but of course the Md Dems are having a fit and trying to stop him from doing this.

Jun 03, 2021 10:53 AM
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

It's the trailing effect of the pandemic putting people in better paying unemployment than actually returning to work. It will be short-term as unemployment runs out. 

Jun 03, 2021 10:10 AM
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

The raw materials are in short supply. Companies make them can not find enough workers. Some chose not to work until they stopped getting help. Thanks to our new adminstration incentives.

Jun 03, 2021 09:32 AM
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Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have heard of appliances being on backorder and thought that was odd since it has always seemed like you can get those right away.

Jun 04, 2021 04:05 AM
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Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

2x4 up 120% in cost 1X6 up 180%  Try and source plumbing parts- spend days searching only to find out website lies, it's on back order. Many appliances have electronics that they can't complete, so no delivery.

 

Jun 03, 2021 12:43 PM
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Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

They are in short supply.  A client's home is being built but it's taking long because they are out of materials.  

Some builders in my area are now allowing bidding on their properties to ensure maximum profit. 

Jun 04, 2021 07:30 AM
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Appliances, especially high-end are hard to get but needed for a C of O on new construction! Hopefully, manufacturing will catch up once those getting paid to sit on their butts get back to work!

Jun 03, 2021 06:23 PM
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Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Let's hope this is a short lived supply and demand issue.  Going on it appears across the country, certainly here in Phoenix.  Costs have gone sky high.

Jun 03, 2021 10:58 AM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Raymond,

We had heard that from Ron's sister. She has furniture manufactured in South-East Asia, for her store.  A

Jun 03, 2021 10:05 AM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Hearing the same thing including builders limiting sales at devekpments to as low as one a month. Can't get help and can't get materials. These same builders were selling up to 10 homes or more per site prepandemic.

Jun 04, 2021 04:17 AM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

No personal experience but that's what I have been hearing. Not sure it's going to change soon but time will tell.

Jun 03, 2021 08:40 PM
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Did some interstate traveling and the highways are flooded with giant trucks since covid restrictions have been eased and pent-up demand crying out. Yes there were shortages, lag times, out of stock etc. issues but all coming back on track. Of course subjective as to special order items and locations

Jun 03, 2021 03:50 PM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It's an issue right now and prices are indeed very high. One of the problems that is being discussed is maintaining low inventory levels in the past, leading to current shortages. Prices are already declining slightly and are expected to go down further by the fall when demand is generally lower, but NOT to pre-pandemic levels. Right now it's definitely an impediment to new home-ownership.

Jun 03, 2021 01:04 PM
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Ken Jones
Toms River, NJ

Raymond Henson, eXp Realty The declining U.S. economy as measured in terms of inflation and the lack of materials availability is the result of many causes all of which directly stem from our ties with Communist China.

However, as I see it, the 3 primary causes are:

1. Out-sourcing essential manufacturing capacity, including the manufacture of pharmaceuticals.

2. U.S. federal politicians who are virtually owned by Communist China and exchange their loyalty to the best interests of the United States for Chinese money; and

3. Americans who support Communist China through their gluttonous purchases of cheap goods, much of which is made by enslaved Chinese citizens.

In the end, what we are seeing is only the beginning of an ever-deepening negative spiral of higher prices and growing shortages which will negatively impact the entire U.S. economy, including the real estate industry (which is happening as we sit here on ActiveRain).

Jun 03, 2021 12:21 PM
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Wow Raymond!   I know some of my clients are talking about appliances and furniture that have been delayed for months, but have not heard from builders on this.   

Jun 04, 2021 06:41 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Just what the economists predicted when someone thought it would be a good idea to lock down the borders and get into a tariff fight with China.

Jun 03, 2021 01:33 PM
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Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I think it's going to be short term, but it's definitely a problem. Materials are much more expensive, if available at all.

Jun 04, 2021 06:25 AM
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Takes a long time for a tree to grow.

 

Jun 04, 2021 11:23 AM
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Peter Mohylsky. Broker
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY

Thanks for sharing these facts.

Jun 04, 2021 04:21 AM
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Dick Stoner
Reist Corporation - Rockville, MD
Land Use specialist

I think it's short term, Raymond.   Clearly, manufacturers of all sorts of materials scaled back, or closed up production during Covid-19 and many have had trouble re-hiring staff now that restrictions are being lifted.  I think it's caused by thin margins and my only real knowledge is with lumber mills which did not wants loads and loads of wood sitting in inventory last year, so they cut back production. Now, it will take six months to a year before they catch up, but higher prices are luring them back so the ones able to produce supplies right now are getting the benefit and presumably will have a banner year of profitability

Jun 07, 2021 08:48 AM
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Lumber is up over 30% this year 

Jun 04, 2021 06:43 AM
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Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This has been going on for awhile and I believe it will take several years to get back to "normal" (what is normal anymore?). Factories shut down during the recession, production was reduced and of course, lumber prices shot up as demand for new construction and remodeling went through the roof during the pandemic.  There is a severe shortage of contractors to work, but also supplies.

Jun 18, 2021 02:24 PM
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Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I went to purchase paint yesterday for a rental I need to paint.  It was the same thing.  There was very limited supply.  We had to go to two stores and were lucky to find the paint.  The Sherwin Williams employees said they would be luckt to be back to normal production by September.

Jun 08, 2021 06:21 AM