When we read the news, watch detective stories, terrorist activity and just about everything that happens in the world.....to separate fact from fiction we are told in so many ways "Follow the Money".
"Experts" tell us conflicting stories in very convincing prognostications such as the residential real estate market has bottomed out OR that we are in a "dead cat bounce" on real estate prices. Who to believe? We already know that "news is not news'....it is a point of view.
Residential constructions uses 45% of lumber produced.....this is not opinion.
Building supplies prices crashed from 2005-2009.....by 65%!
Since 2009 lumber prices have been bottoming and advancing......they are now at an eight year high and climbing fast.....45% in 2012 alone!
Demand is booming.....i.e. housing construction is booming. In the Tampa Bay area much of this new housing is no longer of the 1500 sq ft houses that builders were touting during the crash.....but NOW they seem to be back up to the 2500 sq ft levels.....not the "3/2" houses that dominated during the crash but, rather, the 4+ bedroom homes that we thought were history.
Follow the money!
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