Here we go again: Lumber prices shoot up 40% – Fortune

Home » Here we go again: Lumber prices shoot up 40% – Fortune
For the seventh consecutive week, lumber prices are up. Since bottoming out at $389 per thousand board feet in August, framing lumber is up 40% to $545. While that “cash” market price is still well below the lumber bubble’s peak of $1,515 in May, it does put lumber prices back in the expensive territory: Prior to the pandemic, the price usually swung between $350 to $500. But there’s worse news for homebuilders and do-it-yourselfers: This upswing might just be the early innings of another run. “We expect prices to climb back into the $700s as demand continues [to return],” Scott Reaves, director of forest operations at Domain Timber Advisors, tells Fortune. Wall Street is even more bullish: As of Friday, the futures price for delivery of a thousand board feet in November is up to $772. If the cash market reaches that level, it would mark a 98% uptick from the August bottom. Why are lumber prices rising again?Simple economics popped the lumber bubble: Once wood prices got up 300% above their pre-pandemic levels, buyers refused to buy. But as prices started to plummet this summer, buyers didn’t rush back in. After all, why would they when outlets like Fortune said the correction would continue? However, once prices bottomed out this summer, buyers finally returned. That pent-up demand coming back into the market, Reaves says, is helping to drive up the price.But that’s not the only reason. On the supply side, things quickly went from a historic lumber shortage to a…

Here we go again: Lumber prices shoot up 40% – Fortune

Leave a Reply

Your email address will not be published.