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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Elroy Jetson who wrote (59756)8/11/2006 4:15:44 PM
From: Think4YourselfRead Replies (3) of 306849
 
Do you really think anyone on this thread is crazy enough to think builders buy through Home Depot or Lowes? Contractors, flippers, and homeowners do, which was my point. I buy a lot of my material off the cull cart, and have a large stock of 5' and shorter lumber of all types. Most of it is virtually free, and it cuts my total materials cost to about what the builders pay, at least for projects that can utilize it.

As you surely know, builders get lower prices because they buy/sign contracts that guarantee volume. That may help explain why they are still overbuilding. They are stuck with the materials whether they use them or not, unless they want to sell the contracts at a big loss. That also helps explain why lumber futures are down now. No one is buying and the builders want out.
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