| What has really changed in the housing market | | | | written over the new housing market. This is |
| with regards to timber dumping from Canada, | | | | significant and in 2000, 34% of all the |
| lumber costs since the Professional Building | | | | lumber for the new housing starts came from |
| Magazine issue in Sept. 2001. How is this | | | | Canada, in 2001 37% and it is expected to be |
| affecting the housing market or the predicted | | | | 30% even in 2002 with the newest tariff in |
| housing bubble burst which was suppose to | | | | place for anti-dumping duty of nearly |
| cripple the economy. We have seen the Federal | | | | 40%.These tariffs are too high and are |
| Reserve raise rates, lumber prices go up, | | | | anti-competitive. Canada should have policed |
| still America was buying up new homes and | | | | them selves a little better and not taken |
| joining the ownership society faster than at | | | | such advantage of the situation, but today we |
| any other time in the history of our | | | | are all to blame. What I think is the |
| nation.Unfortunately the ease to buy a house | | | | funniest thing as I read the old articles in |
| was truly too easy judging by the current | | | | the building industry is that Enron was |
| foreclosure rates and one might wish to ask | | | | selling lumber futures during this time and |
| why should young couples with only two to | | | | they would have been the ones who took the |
| five percent down be buying a home anyway? | | | | bath as companies like US Homes, Pulte Homes |
| That is not fiscally responsible. These | | | | and other major players had their prices |
| buyers will be upside down in these homes in | | | | locked in earlier. You want to hear |
| some markets almost as before the ink is dry. | | | | something else? The Canadians now wish to |
| In other markets they will be growing equity | | | | retaliate with less cooperation of the |
| extremely fast as long as their local market | | | | pipeline for natural gas from Alaska, after |
| holds out, but when things change; there will | | | | all they sell us natural gas and oil (1 |
| be more over all foreclosures. And they | | | | billion barrels) and any pipeline easement |
| cannot realize their equity because they will | | | | situation cuts into their perceived right to |
| not be able to sell their homes. If they use | | | | further offset our already 85 Billion Dollar |
| the equity to pay off credit cards by | | | | per period trade deficit. In British |
| re-financing before the prices stabilize they | | | | Columbia there are many towns out of work |
| will alleviate high interest rates but have | | | | where the mills are located. Oh really and |
| also committed themselves to more over all | | | | what do you think happened to our towns in |
| debt?With increased costs of interest rates, | | | | WA, OR, ID and other places. If the free |
| building materials; if the houses cost an | | | | market system could be evenly placed with |
| estimated $1000-2000 more, and I am talking | | | | proper cooperation then we would not have had |
| about you basic starter home of modest size | | | | to take the hit in our towns and now they had |
| 1400-2000 square feet; then fewer will | | | | to take the hit in their towns. With the big |
| qualify to buy a home and chances are those | | | | builders locked in and the US Lumber and |
| who have not yet bought a home may not be | | | | Truss companies forced to honor these |
| able to secure financing anyway; if they do, | | | | contracts by companies like Enron (ha ha), |
| they pose a higher risk of loan fall out | | | | Pulte, etc. it will be the little lumber |
| rates being thrust upon the mortgage arena. | | | | companies and builders who get hurt the most. |
| Our Commerce Department Imposed a 19.3% | | | | So who wins? No one, see the problem? I |
| countervailing duty on timber from Canada. | | | | do.Will builders try to shave prices by not |
| It should have been 10-14% max and only for 9 | | | | pressure washing finished homes, yes the |
| months, so US companies could get back on | | | | smaller ones will. Will they withhold |
| their feet without pissing off the | | | | payments to sub contractors too? Yes, will |
| envi-moron-mental-lists (someday I will | | | | they cut corners to further cut their losses |
| explain exactly how we came up with that | | | | due to increased prices, yes. So what |
| term). Our gross national product has 5% | | | | happened? |