Shipping Container Costs and the Direct Impact on Real Estate Prices.
Just when you thought there would be some relief in home prices with lumber costs coming down from the record 52 week high of $1711 to a current cost of $622. Buyers were feeling hopeful that they would see home prices balance and gain some control back in the rapid seller’s market. Well unfortunately this is not the case, if only it were that easy. With the extreme supply shortages the Building Industry has been facing and with the labour cost increases we are far from out of the woods on this one.
The last thing anyone was probably anticipating was the unbelievable costs increases in shipping. Companies are reporting historically a shipping container cost averaging from $3000-$8000, depending on location, to an astonishing $18,000-$30,000 today. This is one more hyperinflation contributor that will continue to keep pressure on home pricing.
Companies are doing their best to get creative and find ways to get around these costs, some reverting to none shipping container shipments and dry box packing however with these costs it is impossible for the suppliers to absorb the bill and in turn will be passing it on down to the consumer.
This again is bringing some much-needed price growth to the Calgary Real Estate resale market, bringing a larger gap in pricing between the resale and New Home market that has previously been marginally different.
Posted by Erin Reeves on
Leave A Comment