Unfortunately, it had to happen sooner or later. Going many years without a price increase has left us with no responsible option other than catch up just a little.
You can lock in current pricing by making a commitment before January 1. Just call and we’ll work on getting your pricing set for deliveries prior to June 1, 2013.
Three things are driving our need for a price increase:
- It is to the benefit of our customers, past-present-future, that we maintain the financial integrity of Hearthstone. As much as we want to keep prices low, the only thing that comes out of selling too low is a financially unstable company. That’s not good for anyone.
- Even a small amount of inflation adds up. Nobody is better than we are at
controlling costs of huge specialty timbers, but they are not easy to come by.
Of course they aren't the only part of our cost structure that has crept up.
Other building industry prices are starting to move very quickly and we expect that to continue through next year. More about that below, but things like framing lumber and gypsum board prices are running at 20-30% higher this year. - Our new prices reflect not only what has already happened, but what is going to happen next year, and in particular, what is going to happen in the middle and end of next year. Higher prices in building and building materials are almost a certainty next year. Unfortunately, we are not at all certain that this price increase will be the last one for 2013.
Here’s the worst danger of waiting: the number of good artisan-builders available is drastically lower than 5 years ago. The number of quality craftsmen and tradesmen that these builders employ has been severely decimated.
The worst thing that can happen to someone who wants to build a truly unique, custom home is to get tangled in the chaos that will result after those few remaining quality, artisan craftsmen get booked up. More below, but it is a near certainty that they will get booked up by mid 2013 at the latest.
If you’re too busy to read more, you’ve read the key points. To lock in current pricing, call us at (740) 453-6542 or call your favorite project manager or Hearthstone Distributor: (click on name to send email)
Chris Wood, VP Sales, 865-368-5165
Ron White, Project Manager, 865-654-0928
Jobe Leonard, Project Manager, 865-809-4419
John Ricketson, Project Manager - Georgia Office, 478-747-4076
Scott Walker, Project Manager - Pennsylvania Office, 570-2951083
Terry Reneau, Project Manager, 423-608-5195
Carmen Caprio, President, 865-368-5163
If you're interested in an expanded discussion of these issues, please read on. Also, there are some links at the end to some beautiful and interesting projects.
The media is full of stories about a housing rebound. The Dow Jones U.S. Home Construction Index stood at below 200 last October and is above 450 this October. That index tracks the stock values of publicly traded home building companies. That index rise is absolutely astonishing. As we all know, people buy stocks based on what they are expecting them to do in the future, rather than what they've done in the past. And everybody from journalists, to Main Street, to Wall Street, to the Federal Reserve, recognizes, and is betting on, a big jump in homebuilding next year.
Our honest recommendation to anyone who is even considering building in the next 3 years is that they should build as soon as possible. And, that is because of not only price inflation, but a problem far worse:
Here's the true danger of waiting: the number of good artisan-builders available is drastically lower than 5 years ago. Worse, the number of quality craftsmen and tradesmen that these builders employ has been severely decimated.
The worst thing that can happen to someone who wants to build a truly unique, custom home is to get tangled in the chaos that will result after those few remaining quality, artisan craftsmen get booked up. More below, but it is a near certainty that they will get booked up by mid 2013 at the latest.
Material prices, especially some of the key ones like lumber, gypsum, and insulation are all rising dramatically. For example, the Random Lengths framing lumber index (an industry standard) is up about 24% this year.
Gypsum board (sheet rock; wall board) prices are set to rise 25+% in January 2013, which follows a 24% increase in Jan 2012.
Stuff like this can only get worse.
Hearthstone exists because, for over 40 years and over thousands of customers, we pride ourselves on a creative culture of jaw-dropping products at reasonable prices. We also provide sound, honest advice.
This advice to avoid a maddening rush towards the few really good creative builders is perhaps the most important advice we've given anyone in 40 years. That rush will happen at Hearthstone too. Just a small increase in our backlog, which is bound to happen, will quickly result in long lead times. It pays to get started, at least with design, a year before you plan to move in. Obviously, it's now time to get started so you can benefit from the best of times (ever) to build.
Don't forget: it's going to take 6-18 months to construct your home, and
that's AFTER somebody actually starts moving dirt, digging footers, etc.
There's a lot that has to happen before that point, including getting design
work done, and getting to the top of the list with builders and at Hearthstone.
Getting to the point of moving dirt usually takes a lot longer than people
realize. If you want to move into your home in 2013 or the first half of 2014,
you should get your design work started right away, and you should be trying to
lock down whatever prices you can.
That the current mortgage rates should be taken advantage of is understood by all. But, incredibly low mortgage rates might be with us for a few more years. A crucial thing that won't be with us much longer is extremely depressed prices for unusual, extraordinary land. If you don't have that unique piece of land you've always wanted, you should really consider buying it now. And, if you're going to buy it, you might as well build on it so you and your family can enjoy it now.
This isn't a football game. None of us gets to put time back on the clock.
We could be wrong. But, the risk of betting with us on this forecast is far less than the risk of waiting to find out. That's what we do believe: The risk of building now is minimal and the reward is huge. The risk of waiting to build in late 2013 or in 2014 is huge, and the reward small. The cost of getting started now is small.
Quite a few of you have followed Hearthstone for many years. Thanks for your continued confidence. Many of you have known us for only a few months or a few years. Thanks for your continued interest also. We're here to serve you with outstanding products and honest advice.
Call us and let's see what we can do to lock in prices.
To repeat myself: This isn't a football game. None of us get to put time back on the clock. Let us help you get moving.
Thanks again for thinking of Hearthstone!
(740) 453-6542
www.hearthstoneohio.com
GREAT LINKS TO CHECK OUT:
Projects with the backstories of the family and the process:
2012 Log Home Living Log Home of the Year in Tennessee:
http://www.hearthstoneohio.com/hand_hewn_projects_pfendler.html
Extraordinary log lodge in South Carolina for a customer from Chicago: http://www.hearthstoneohio.com/hand_hewn_projects_covert.html
Intimately personal log home in North Carolina: http://www.hearthstoneohio.com/hand_hewn_projects_green.html
Cozy log cabin in Tennessee:
http://www.hearthstoneohio.com/hand_hewn_projects_merrill.html
Timber Frame in in tidewater South Carolina for a New York artist: http://www.hearthstoneohio.com/timber_frame_projects_selengut.html
Timber Frame mountain retreat for some Florida folks: http://www.hearthstoneohio.com/timber_frame_projects_jackson.html
Timber Frame family home near Boone, North Carolina: http://www.hearthstoneohio.com/timber_frame_projects_halford.html
Timber Frame commercial project for the Ritz Carlton: http://www.hearthstoneohio.com/commercial_structures.html
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