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Blog Post

July 22, 2021

After months of high lumber prices, it's easy to be excited about seeing a decrease in lumber costs. However, while the cost of lumber appears to be dropping, prices remain higher than the headlines are suggesting. From a recent article from NAHB, we can see that lumber prices quoted to builders are still held at record highs. 

Because the supply chain for dimensional lumber occurs in five stages, we have yet to see the results of dropping lumber prices for builders. David Logan of NAHB states,

 "Home builders and remodelers begin to get price relief once mill prices have substantially decreased for an extended period and/or stabilized. Note that large price decreases alone may not be sufficient. Prices must fall for long enough to materially lower a supplier’s average costs after a run-up.  Depending on the rate and consistency of price decreases and whether prices have stabilized at the lower level, it may take a few weeks to a couple of months for builders to see price relief on the order initially reported in the futures or cash markets." 

See the full article in the link below to learn more about the recent pattern of lumber prices.

SOURCE: https://eyeonhousing.org/2021/07/why-builder-lumber-prices-remain-higher-than-headlines-suggest/