Construction costs are currently skyrocketing

ECB raises the key interest rate by 0.5 percentage points. That is more than the initially expected 0.25 percentage points. It is often said here that the interest rate increase is already anticipated and priced into the current rates. However, I fear that the additional 0.25 percentage points will give mortgage rates an additional, strong boost.

Let's see what the German federal bonds do this and next week. Currently, the yield is at 2%.

Let's see what the federal bonds do this and next week. Currently, the yield is at 2%.

1.21% for 10-year federal bonds. Yesterday there was a brief hiccup upwards, but two hours later that was forgotten again.

Wait and see, he himself said in March/April that the cost development regarding our offer would "be within limits" because he had calculated well and maintains long-term supplier relationships.

If it "only" ends up being 40k € in additional costs, I'll open a bottle of champagne :)

Of course there are price increases, but 40k€ additional costs within 6 months require a good explanation from him.
For example, the steel price has been dropping for weeks and is currently back at the level of the end of 2021. (About 1,000€/t. It was already at 1,600€ in April.)

Of course there are price increases, but an additional cost of €40k within 6 months requires a good explanation.
For example, the steel price has been declining for weeks and is currently back at the level of late 2021. (About €1,000/t. It was already at €1,600 in April)

Where are these prices?
I see prices here (current daily invoices) from €1550 to €1650 net equity (we buy directly from the steel trade) in the NRW area, a bit less further south – but nowhere near €1,000 net :oops:

Of course there are price increases, but an additional €40k within 6 months, he owes a good explanation for that. Steel prices, for example, have been falling for weeks and are currently back at the level of the end of 2021. (About €1,000/t. In April it was already at €1,600)

I can confirm that. Our general contractor says that prices have been stable for several months. Small changes of course also occur, but not explaining +€40k.

Of course there are price increases, but an additional cost of 40k€ within 6 months, he owes a good explanation for that. Steel prices, for example, have been falling for weeks and are currently back at the level of the end of 2021. (About 1,000€/t. In April it was once at 1,600€)

Where do those prices exist? I see prices here (daily current invoices) from 1550 to 1650 net equity (we purchase directly from the steel trade) in the NRW area, a bit less further south - but far from 1,000 net :oops:

I have a possibly somewhat naive question: these price increases for construction steel sound pretty threatening at first. But how much steel does one actually need for a normal single-family house? Roughly? I simply have no idea. If it were, for example, 5 tons, the additional costs compared to the total price would be ridiculous. Or is it 200 tons? or 30? Recently I read an interview with the managing director of a large Hamburg builder/project developer that the costs for steel only account for 2% of the total volume. In that case (scaled down to a single-family house), that wouldn’t be a reason to panic...?!