- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Lumber pricing and Canadian tariff issue
Posted on 6/18/18 at 8:38 am
Posted on 6/18/18 at 8:38 am
LINK
quote:
Since the beginning of last year, rising lumber prices — made worse by tariffs on imported Canadian softwood lumber — have increased the price of an average single-family home by nearly $9,000.
Not only is this harming housing affordability, it has also knocked close to 1.4 million potential home buyers out of the housing market.
6
Posted on 6/18/18 at 8:42 am to ApexTiger
quote:
Not only is this harming housing affordability, it has also knocked close to 1.4 million potential home buyers out of the housing market.
Because they can’t afford a new house they are knocked out of the market?
I couldn’t afford a new BMW, guess I’ll have to take the bus!
Posted on 6/18/18 at 8:44 am to ApexTiger
You do know why we buy so much lumber from Canada don't you?
Posted on 6/18/18 at 8:47 am to Homesick Tiger
why?
Posted on 6/18/18 at 8:49 am to ApexTiger
quote:
it has also knocked close to 1.4 million potential home buyers out of the housing market.
Poor people will have to buy rather than build.
Oh the humanity!
Posted on 6/18/18 at 8:50 am to Homesick Tiger
quote:
You do know why we buy so much lumber from Canada don't you?
Because they have more wilderness?
Posted on 6/18/18 at 8:53 am to tigernchicago
quote:
why?
It beats cutting down our own trees. The "tree huggers" got what they were after over the years - less cutting of our trees.
Would you rather cut down trees in your yard for firewood or the neighbor's if he allowed you to do it for a competitive price?
Posted on 6/18/18 at 8:55 am to tigernchicago
quote:
why?
The government owns most of the timber in Canada and they allow lumber companies to cut the timber at well below market value. These unfair subsidies allow the Canadian companies to undercut their American competitors on price.
Posted on 6/18/18 at 10:56 am to Bear-O-Dactyl
After 100 years of development, America enjoys more trees than we had started with...
our replenishing of cut forest has been very effective...
our replenishing of cut forest has been very effective...
Posted on 6/18/18 at 11:04 am to ApexTiger
quote:too much logic and fact for the alt right PT members
After 100 years of development, America enjoys more trees than we had started with... our replenishing of cut forest has been very effective...
Posted on 6/18/18 at 11:21 am to ApexTiger
We are up 17% this year alone. Up 50% over past 2 years. The tariffs on lumber are painful.
Posted on 6/18/18 at 11:22 am to ApexTiger
It's a bit disingenuous to imply that these are standard "tariffs" put in place by the current administration.
This all started when the Softwood Lumber Agreement expired in 2015. During the 12 month period following, US producers filed for countervailing duties and anti-dumping activity against Canadian mills.
Basically, US mills said that Canadian mills gained an unfair advantage from the Canadian government in regards to logging fees and transportation subsidies.
They were found to be correct, and in roughly April of last year they became subject to an average countervailing duty of roughly 19.5%. (It was higher for some mills and lowers for others, depending on how much they benefited from the Canadian government's actions).
tl;dr: The Canadian government unfairly subsidized their lumber mills and now have to pay the price.
This all started when the Softwood Lumber Agreement expired in 2015. During the 12 month period following, US producers filed for countervailing duties and anti-dumping activity against Canadian mills.
Basically, US mills said that Canadian mills gained an unfair advantage from the Canadian government in regards to logging fees and transportation subsidies.
They were found to be correct, and in roughly April of last year they became subject to an average countervailing duty of roughly 19.5%. (It was higher for some mills and lowers for others, depending on how much they benefited from the Canadian government's actions).
tl;dr: The Canadian government unfairly subsidized their lumber mills and now have to pay the price.
Posted on 6/18/18 at 11:26 am to ApexTiger
quote:
our replenishing of cut forest has been very effective...
How much of those forests are farmable though? My in-laws are getting paid money by the government not to cut their trees and that's for only 12 acres. That's ludicrous imo.
Posted on 6/18/18 at 11:28 am to ItNeverRains
quote:
We are up 17% this year alone. Up 50% over past 2 years. The tariffs on lumber are painful.
Meh, do they impact the sell price? Sure.
But, framing lumber only represents about 15% of the total cost to build a home. So a 20% increase in the materials that represent 15% of the total cost of a home, doesn't translate to a significant increase in home prices.
A quarter point rise in mortgage rates will have a much bigger impact in home loan qualification than a 40% rise in lumber costs.
This post was edited on 6/18/18 at 11:35 am
Posted on 6/18/18 at 11:30 am to Eli Goldfinger
quote:
Poor people will have to buy rather than build. Oh the humanity!
lol wut?
You don't think existing construction home prices are not affected by new construction? The market prices inflate across the board.
I mean holy forest through the trees (Pun intended)
Posted on 6/18/18 at 11:34 am to Green Chili Tiger
quote:
But, framing lumber only represents about 15% of the total cost to build a home. So a 20% increase in the materials that represent 15% of the total cost of a home, doesn't translate to a significant increase in home prices.
That's why we call it fake news. Home values have been steadily increasing since the housing crisis of 2008-2009. There are other factors involved in home prices, but the media has an agenda.
Posted on 6/18/18 at 11:43 am to jrodLSUke
quote:
That's why we call it fake news. Home values have been steadily increasing since the housing crisis of 2008-2009. There are other factors involved in home prices, but the media has an agenda.
A house that cost 50k to frame 2 years ago now costs 75k because thats what the lumber yard charges us. I do not go through any network affiliate for that pricing.
And yes materials across the board have gone up, nothing had increased the way lumber has. It's the biggest overall cost in the process of home construction and its not just framing lumber that has exploded, cabinet makers, trim carpenters,etc.. are paying more and passing that cost along to us, and we to the customer
This post was edited on 6/18/18 at 11:44 am
Posted on 6/18/18 at 11:46 am to jrodLSUke
quote:
Home values have been steadily increasing since the housing crisis of 2008-2009.
To be fair, they had nowhere to go but up.
quote:
There are other factors involved in home prices
Absolutely. Enviromental impact fees, permit fees, transportation costs, and labor costs are all rising.
Also, the lumber "tariffs" by themselves don't have a huge impact, but coupled with the steel tariffs (which impacts the foundation, electrical, and HVAC materials) it does move the needle on home prices.
Posted on 6/18/18 at 11:49 am to ItNeverRains
quote:
It's the biggest overall cost in the process of home construction
You're paying more for lumber than you're paying for land?
Your lumber yard is raping you if that's true.
Posted on 6/18/18 at 11:49 am to Bear-O-Dactyl
The Canadian govt doesn't worry about the environment as much as we do. They'll log or put a mine anywhere the companies choose.
We're having some trans boundary issues with them.
We're having some trans boundary issues with them.
Page 1 of 2
Back to top
Follow TigerDroppings for LSU Football News