Originally Posted by macdaddy
My parents live around that area and were quoted around $200 sq ft by Hammond but this was a couple years ago.* What do you think will happen to building costs over the next couple years PJ?* For existing homes, what do you think will happen to the 1.5-2 waterfront market segment?
Hey Macdaddy, was that Hammond the builder or Hammond the Architect ?
In the last few months framing materials have slowed from their upward movement, most other materials are still increasing, this year alone I have had 5 letters from one supplier telling me to adjust my costing upward as their costs are going up.
Almost all trucking to my job-sites have a fuel surcharge added including the onsite potty cleaner.
Existing homes, I see a lot of reductions in existing listings, esp. on the waterfronts, some that have been listed for 1.5- 2mil have reductions of 300-500K. I was looking at a WF priced at 1.9mil, it finally went under contract for 1.5mil.
I have a spec home thats been sitting on the market since last Nov, it was first listed for 1.1mil. its now at 869K.
My hope is that this slowdown will bring down subcontractor pricing, thats been my biggest increase because when they are busy and can't get to your job unless you pay a premium.
Now as far as the contract work goes, I'm swamped, for the past 6 years I've been doing nothing but tear downs and rebuilds for high end customers, we finished one in May and I'm mid way through another one at the moment and will start another in late Aug. We also are planning a 1.6 mill WF for a customer, thats the cost after we tear down their near perfect 5,000 home that they bought last year for 2.4mil.
I don't just tear down the existing home and dump it, I've been talking the owners into spending more to "deconstruct" their homes and to give it to a charity and they can claim a huge deduction from their taxable income.
I bring in a crew from the baltimore inner city area to do the work and I send all of the usable materials to a place in baltimore where it is sold, the money goes to the needy and a soup kitchen, the inner city guys that would otherwise not have a job get well paid and the homeowner gets a hugh deduction and off course I make a little more. most of the old home is re used.
Items that can't be re used would be the roof shingles and sheet-rock, everything else is deconstructed, de nailed, all the block and or brick is cleaned and sent up to Baltimore.