These days, our home is our hassle
Recent articles in the Wall Street Journal, New York Times and The Washington Post have discussed the changing relationship between housing and climate. In the past 20 years, many people, especially seniors, have seen fit to move to warmer climates. Florida, the Southeast and the Southwest have become popular locales for avoiding harsh winters.
However, these warm weather havens are seeing a number of climate issues disrupt peaceful home ownership. Droughts, heavy rains and, of course, fierce hurricanes, have caused suffering, destruction, damage and increased insurance costs.
In Florida, especially, home prices have begun to show noticeable decreases in coastal areas where ocean depths have risen and hurricanes have become commonplace. It seems that northern winters might not be the worst choice as seemingly unabated climate change advances.
Zillow, the real estate listing website, will soon add climate risk along with square footage, school district and walkability score to the descriptions they publish to help buyers and sellers make decisions. Floods, wildfires, heat and high winds are expected to be rated.
Lumber prices, which directly impact the cost of both new homes and rehabbing damaged property, have been especially volatile during the past few years as interest rates have had huge swings downward, then upward. During COVID, major stay-at-home remodeling efforts caused shortages and drove prices sharply higher for most building materials. Copper used for construction in electrical, plumbing and appliances had futures prices explode from $2.04 per pound in March of 2020 to more than $5 in May of this year.
Corn falls as harvest picks-up
With roughly 47% of our nation’s corn crop now in the bin, most farmers are pleased with their yields but unhappy with prices. The large size of the crop has some wondering if they’ll have room to store the new crop while others are concerned that threats to transportation, such as low river levels, could hurt their ability to market their products. The recent strength of the U.S. dollar decreases demand from our foreign buyers, so farmers are troubled by that factor as well.
Friday’s markets
CME midday prices: Gold for December delivery — $2,730 per troy ounce, silver $32.75 per ounce, copper at $4.37 per pound. November crude oil at $69.00 per barrel. November soybeans were at $9.85 per bushel, December corn at $4.04 with December wheat at $5.72. December cattle $186.50 per hundred pounds, December hogs, $77.35.
Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com.
Futures and options trading involves substantial risk of loss and is not suitable for all investors. Clients may lose more than their initial investment. Past performance is not indicative of future results. This is not a solicitation of any order to buy or sell, nor does it provide any recommendations in regard to the market. Information contained herein is obtained from sources believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.