- Lumber prices see first price decline in 18 weeks
- This drop comes on top of -30% drop in lumber futures
Months-Long Lumber Demand May Be Ebbing
Itâ€™s summer time.Â Vaccinated Americans are beginning to take vacations again instead of focusing on their dreams of a newly built home or adding a new room to their existing homes.
The result? Â Sawmills are beginning to catch up with ravenous home building demand
All of that boils down to Americans shifting their spending priorities away from home renovations and home building projects that have been driving sky-high lumber price increases and stark material shortages in the home building industry.
According to Josh Goodman, vice president of purchasing for Sherwood Lumber Co.in New York, â€œWeâ€™re seeing demand slow down and more supply coming to the marketplaceâ€¦weâ€™re definitely buying less.â€
Lumber Prices Decreasing
Random Lengths,Â a trade publication, quoted CIBCÂ (a commercial, wealth management, personal and small business banking service) analyst Hamir Patelâ€™s article titled â€œLumber Pricing Decline Now Clearly Underway.”
The price of Western spruce-pine dropped -1.8% to $1,600/1,000 board feet.
Southern yellow pine 2 X 4s dropped -5.8%.
Random Lengths Composite dropped -1% below a record high.
Lumber futures on the Chicago Mercantile ExchangeÂ are set for a monthly decline in June after lumber prices hit record highs in May.
Wholesalers Reducing Lumber Amounts
For now anyway, lumber wholesalers who supply lumberyards with lumber are buying less of high-priced lumber in hopes that lumber demand will continue declining.
Sherwood Lumberâ€™s Goodman said, â€œThereâ€™s no more crazy panic (for lumber) in the streets.Â But, this could all change very quickly.
Thanks to Bloomberg, CIDC, and Random Lengths.
URGENT: 2021 Results Released. New FREE On-Line Web Event Reveals 17 Surprising Secrets Of The Top 100 Millionaire Agents. Get Your FREE Spot For The On-Line Webinar Now. When You Attend This Event You Will Have A Sense Of Relief Knowing You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money NOW Who Never Thought They Could.
P.S. Limited Space Available. 235 Spots Left.