Sunday, June 15, 2008
The shoot up in oil prices are driving up the cost of construction materials which are also further eroding the confidence of homebuyers. Costs of goods like copper, steel, aluminum, concrete, bricks, asphalt and plumbing fixtures gone up and homebuilders are able to feeling the pressure from suppliers to foot the bill. In total, the wholesale price of construction materials for new house has gone up by 3.4% overall in April from a year earlier, according to the Labor Department.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like asphalt roof shingles, insulation and carpet. For now higher oil prices are affecting consumers more than homebuilders, but this still affects homebuilders.
"Any material which is petroleum-based or transportation-intensive will have pricing pressure during periods of rising oil prices," according to a Purchasing, Planning & Design Atlanta based company. Manufacturers are trying to push cost increases through for materials like asphalt roof shingles, insulation and carpet. For now higher oil prices are affecting consumers more than homebuilders, but this still affects homebuilders.
posted by Real Estate Agent @ 9:47 PM permanent link | Post a Comment | 
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