You said the US was their number one importer. We don’t how much wood is being imported, we know we import more than others. That could mean diddley.
After reading the article, it is an Anti-Dumping measure. That is a good thing.
If the Canadians are selling 4.5-7% less and we use the AD tarriff of UP TO 30%, then wood buyers would buy from US suppliers, that would increase the cost of wood by about 5%.
Let’s suppose (I don’t know the actual numbers) wood is 15% of the cost of a home built, the rest going to land, labor, drywall, elec, plumbing, roofing…
Now, let us look at some math for a $300,000 house
$45,000 = 15% of the $300,000
$45,000 x 5% = $2,250
$2,250 / $300,000 = .75%
So that is less than 1% increase of some house houses.
You guys are taken lessons from political writers, the headline says one thing the reporting says another.
Rob Aubrey nailed it (pun intended). Even the American Wood Council estimates the increase in home prices would be less than 1%. Canadian wood is not subsidized directly. Lumber in Canada is cut from federal lands with minimal royalties paid to Canada. US lumber is mostly on private land with all the extra associated costs. Wood, like steel, is an international commodity. Sellers buy from wherever it is cheapest. Home builders, even the huge publicly traded ones, do not buy wood from other countries. They buy from various lumber distribution entities (lumber yard, Big box commercial divisions, etc.) albeit often with national contracts.
It’s funny to hear all the pushback on this tariff given the #MAGA bent on this site. Seems everyone wants American jobs, but aren’t willing to pay for it if it impacts their little corner of the economy.
Okay, so Capitalism always finds ways to solve problems. Canadian soft wood getting more expensive? Use less of it. Substitute steel studs for 2 x 4’s. Here in southwestern Florida almost all homes are built out of concrete block outer walls and steel studding. Just saying, there’s always another way…
MBS Highway is a communication tool that will help you improve your batting average and turn more conversations into applications. Every morning, you’ll receive a coaching video from Barry Habib which will help you beat your competition and be a true advisor in this rapidly changing environment.
The National Association of Mortgage Brokers is the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973.
In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage professionals with education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.
Ryan Hills and his team over at the RESource are great friends of ours. Tune-in their latest weekly episode right here on the home page of the National Real Estate Post. Ryan delivers fantastic content beneficial for both mortgage and real estate professionals.
Andrew Berman is a wonderful friend of the NREP Daily. His MNN shows are always insightful with great guests. Be sure to tune-in to MNN right her on the National Real Estate Post to see what Andrew has in store for you. Great content for mortgage and real estate pros alike!
Shred Media is the first professional development agency for the real estate & mortgage industry. Shred Media was created for industry professionals by industry professionals. We understand that you have to stand out to stay relevant to today’s consumer. That is why we are hustling daily to build a community where today’s top influencers and thought leaders come together to collaborate.
Two of our favorite guys over here at the NREP Daily. Ray and Dan are true leaders within the real estate industry and their weekly shows prove it. They bring great content and amazing guests to you in a fun and interactive way. Be sure to visit them by clicking the button below so you get notified when they go "live" on Facebook. Trust us, these guys are great!
Let’s look at your numbers and statements.
You said the US was their number one importer. We don’t how much wood is being imported, we know we import more than others. That could mean diddley.
After reading the article, it is an Anti-Dumping measure. That is a good thing.
If the Canadians are selling 4.5-7% less and we use the AD tarriff of UP TO 30%, then wood buyers would buy from US suppliers, that would increase the cost of wood by about 5%.
Let’s suppose (I don’t know the actual numbers) wood is 15% of the cost of a home built, the rest going to land, labor, drywall, elec, plumbing, roofing…
Now, let us look at some math for a $300,000 house
$45,000 = 15% of the $300,000
$45,000 x 5% = $2,250
$2,250 / $300,000 = .75%
So that is less than 1% increase of some house houses.
You guys are taken lessons from political writers, the headline says one thing the reporting says another.
Rob Aubrey nailed it (pun intended). Even the American Wood Council estimates the increase in home prices would be less than 1%. Canadian wood is not subsidized directly. Lumber in Canada is cut from federal lands with minimal royalties paid to Canada. US lumber is mostly on private land with all the extra associated costs. Wood, like steel, is an international commodity. Sellers buy from wherever it is cheapest. Home builders, even the huge publicly traded ones, do not buy wood from other countries. They buy from various lumber distribution entities (lumber yard, Big box commercial divisions, etc.) albeit often with national contracts.
It’s funny to hear all the pushback on this tariff given the #MAGA bent on this site. Seems everyone wants American jobs, but aren’t willing to pay for it if it impacts their little corner of the economy.
Okay, so Capitalism always finds ways to solve problems. Canadian soft wood getting more expensive? Use less of it. Substitute steel studs for 2 x 4’s. Here in southwestern Florida almost all homes are built out of concrete block outer walls and steel studding. Just saying, there’s always another way…