Lumber Prices Drop for 9th Consecutive Day

Lumber prices recently reached an 8 day streak of decline. Lumber futures have fallen 25% since June 2nd trading around $1,000 per thousand board feet for the first time since March. Rising lumber prices in 2021 has affected the home industry, with the cost of an average single-family home increasing in some accounts by $36,000 according to the National Association of Homebuilders. CEO of Weyerhaeuser, Devin Stockfish, said he doesn’t see prices sustaining over $1,000 however he does believe the renovation boom could lead to a strong demand for wood for another decade. Helping to Maintain this supply will be the amount of homes needing to be built in the next 3-5 years. Some analyst predict lumber prices to fall back into the $600 range. This being due to the investment Timber companies are making into expanded their sawmill capabilities which is where the current bottleneck lies.