Lumber Prices Down as Available Homes Go Up

Lumber Prices have continued to drop here at the end of August. Most recent prices concerning Lumber Futures show a low of $477/1000ft board. Mills across the U.S. & Canada have begun to curb production as demand steadies to a more reliable pace. This new low comes after Lumber Futures saw all time highs in May of $1,733/1000ft board. June saw the largest drop in history at just over 40% as the economy began to reestablish itself into new norms due to volatility caused by the pandemic. The housing market also receives a healthy report as, for the 2nd month in a row, recorded sales of homes has increased. While the market appears to be cooling it still presents as competitive. On average homes are spending 17 days on the market with First-time buyers representing 30% of the market rather than the usual 40% historically shown. Current inventory of homes is estimated at 1.3m, down 12% from a year ago, representing a 2.6 month supply. Economists say a 6 month supply is considered to be a balanced market between both the buyer and the seller. Speculation from economists with the National Association of Realtors put the housing market continuing to gradually cool off throughout the remainder of this year.