Lumber Price Plummets In June, But When Will Lower Cost Reach Builders and Stores?

Lumber Price Plummets In June, But When Will Lower Cost Reach Builders and Stores?

Lumber prices fell off a cliff in June after climbing that mountain at a record pace during the pandemic. The price plummeted 41.8% last month, from $1,267.50 per thousand board feet June 1 to $737.40 on June 30, according to the Nasdaq website. The steep decline happened after a record high of $1,670.50 on May 7. That was an increase of more than 600% since April 2020, according to CNBC.

However, the futures market rate for lumber hasn’t resulted in lower costs for builders and home buyers yet.

“While we are hopeful that lumber prices will begin to stabilize and have a direct impact on home building, we haven’t seen the prices come back down yet on our end,” said Justin Olear, president of the Builders and Remodelers Association of Delaware. Olear is also vice president of operations and construction at Regal Builders, a family-owned company founded over 35 years ago, based in Dover. He said he and his family have never seen lumber prices fluctuate so dramatically.

Rusty Dukes, co-owner of Dukes Lumber in Laurel, said he’s seen prices of some types of lumber fall, like spruce used for framing homes, but others are just leveling off. Meanwhile, many buyers are waiting on the sidelines. “A lot of builders are saying, ‘This is ridiculous. I’m not going to build at this level.’ A lot of projects are on hold,” Dukes said. “Most of the buyers, like us, are staying out of the mix for fear it could fall further.”

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Source: Deleware Online

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