Cost of some building materials drops in wake of housing slump

The much-discussed slowdown in the housing market hasn't been all bad news for local builders, as the cost of building materials has dropped back to more reasonable levels.

During the housing boom and in the aftermath of major hurricanes along the Gulf Coast, the price of concrete, lumber, copper and other staples rose to record levels, resulting in higher costs for contractors, home builders and consumers.

With the residential market slowing down, that has led some vendors and suppliers to lower their prices.

For contractors specializing in commercial construction, such as Jim Cooper, president of Jim Cooper Construction Co. Inc., that is a welcome sign.

"That really helps drive down prices a little bit and bring the commercial market back to a decent level," Cooper said.

He said some materials, such as copper, are at their lowest levels in years, while others have adjusted to more manageable levels.

While Cooper said the local commercial market is still providing plenty of work, the price breaks are also good news for homebuilders, even if they don't have as many starts now as they did during the housing boom.

Barry DeLozier, senior vice president of Signature Homes, said vendors have also felt the pinch of the slowdown and have made price reductions to help their own business.

"We are finding people wanting to be even more competitive than normal and what they are doing is recognizing that their customers who are buying materials need their help," DeLozier said. "They'd much rather be selling some lumber at a lower price than no lumber. It's a typical trickle-down effect."

DeLozier said Signature Homes began planning for a slowdown in the market back in 2005, which he said has helped the company end 2007 well above its 2006 pace.

source: bizjournals.com