Construction costs are currently skyrocketing

2022-08-14 17:15:24

The mason was here yesterday and will start with the garage on Monday. KS bricks ordered from Bauking, delivered within a week. At BK, they apparently have as little work at the moment as they haven't had in 30 years, the same applies to a local sawmill.
Our mason is involved with the daughter of a roofer, through whom we will do the garage roof. He said we should wait because material prices are falling rapidly. Apparently many customers have dropped out due to the current interest rate development.
A requested custom-sized plywood sheet for the trailer was supposed to cost €750 two months ago, now already under €500.
On a certain homepage, a price adjustment was threatened for August 1st. Yeah, that happened too—but downwards!
The 'you once inquired with us' calls are also increasing.
All a very exciting development.

Pig cycle. As soon as the price reductions break through a critical mark, it will shoot up again.
Interest rates are also coming down again.

We need housing, people want to own their homes, building materials are scarce because construction in Asia is going crazy... I fundamentally don't see how construction projects could become cheaper again. On the contrary, craftsmen will have to lure newcomers with better wages, otherwise no one will do it anymore soon.

2022-08-14 17:19:46

By the way, inflation is really bad for everyone. The belief that it will pay off a house is possibly just wishful thinking - much more, it throws the entire economy into the abyss. And while the government has long since used up its powder, the economy might still have some left this year, meaning - there were still wage increases. How it will look next year when the recession officially hits remains to be seen.

That’s how everyone justifies their chosen path.
If inflation is at 8% and maybe at 2-3% in a few years, the house will definitely partly pay itself off.
Because if wages don’t rise then, it’s game over anyway... not just for homeowners, but for everyone else too.

You always have to consider it like this... if I, with my pretty good income, can no longer finance a house, gas, or electricity... then 30 million others already couldn’t long before that and we’re talking about completely different things...

2022-08-14 18:30:44

Pig cycle. As soon as price reductions break through a critical threshold, it’ll shoot back through the roof.
The interest rates are already coming down again.

We need living space, people want to own their homes, building materials are scarce because construction in Asia is going crazy... fundamentally, I don’t see how construction projects could become cheaper again. On the contrary, craftsmen will have to lure newcomers with better wages, otherwise soon no one will do it anymore.

Yes, but the downturn of the cycle is only just beginning. And interest rates have been rising again for a long time. Building materials are available again, and as soon as trade stabilizes – within the next 2 quarters – substitutions and relocations abroad will be feasible again. Construction in Asia no longer takes place because the real estate crisis there is even worse than here.
Craftsmen’s wages have hardly anything to do with construction prices – these rose long before inflation in the range of 7% and above – thanks to cheap money and gold rush mentality. The subsidy effects did their part – a lot, lot of hot air in the official land value assessments. And – the construction industry finally has to rationalize. So far, almost nothing modern has happened. It will remain exciting..

2022-08-14 20:43:03

Just heard that native hardwoods (e.g. oak), which were spared during the first "wood crisis," are now being bought up unseen from the local market by the Americans at double the price ... So: oak will become scarce and expensive once the often still available stocks are depleted.

2022-08-14 20:53:19

The mason was here yesterday and will start with the garage on Monday. Ordered sand-lime bricks at Bauking, delivered within a week. Apparently, BK currently has as little to do as they haven't had in 30 years, the same applies to a local sawmill.

Can confirm the same.
Dead slow there in terms of sales.
Still getting 60m2 of clinker bricks for the garden shed, they still have remaining quota open with the manufacturer.
After that, there won't be anything again until next year from summer onwards.

2022-08-14 21:17:29

Oak will become scarce and expensive once the often still available supplies are exhausted.

So better quickly sample the staircase ^^

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Construction costs are currently skyrocketing

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