Rising Commodities Prices Hurting New Home Sale Revenues

Rising Commodities Prices Hurting New Home Sale Revenues

The housing market can’t catch a break.  But now, as the prices of commodities is on the rise, it’s the homebuilders who are deeper in loss.  Around the world,  commodities like oil, copper, and lumber, are seeing a rapid price inflation.  Of course, this means builders are having to spend more on materials in the construction of new houses., thus, losing more money on the final sale.

Commodities like the ones listed above, are regularly used in new home construction.  Commodities are used as material in framing, sheathing, siding, and wiring.  And they’re used to build doors, windows, decks, driveways, etc.  As the prices of these commodities rises, the price of construction rises, and so the home builders have less area for profit. 

 The trends in rising commodities prices doesn’t look like it will be reversing anytime soon, so, hang on home builders, you’re headache of a roller coaster ride might continue a bit longer.  Nevertheless, the housing market has to get better some day, right?


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Housing Assist Coldwellbanker