The calgary raspberry season has now peaked, so how is the market doing? Like the spring weather, the market was off to a slow start, to put it mildly. However it appears, anecdotally to me, that it has really warmed up into August. Reports from multiple sources, usually other builders I am in contact with, indicate inventory is moving. And the builders are continuing to start plenty of new basements throughout the areas I am familiar with. I am preparing a couple upscale detached homes and they’d be dug right now If I was able to convince the city to issue me a permit. This is a business that always has some crisis just around the corner. The latest speed bump is absurdly high lumber prices created by a combination of American economic activity and what I call ‘mill manipulation’ to raise prices. Well, they’ve raised the price and now the lumber companies need to work furiously to remobilize idle plants or whatever they do to resupply the industry.
As far as the calgary market, I think a little pent up demand was noticed once the lockdown phase started to really ease up. Perhaps we burn through the enhanced demand and then the market slows in the winter to below seasonal norms. Or low rates spur some buying. Or government assistance programs dry up and the economy enters another recessionary phase. Or … something else crazy happens.