What is lumber? Lumber is a wood that has been processed into beams and planks. The biggest producers of lumber are concentrated in the Baltic Sea region and North America.
Why such a huge increase? Rising demand from the renovation and home markets. Plus economist believe that the rush for lumber caught sawmills and wholesalers by surprise and at a time when COVID-19 restrained production, pushing prices up to record levels.
Do you think the price will go down? Per tradingeconomics.com analyst, they are projecting at the end of the 2nd quarter of 2021 the price to be $1,241.19 per thousand board foot. They are also projecting currently that 12 months from now the price could be $1,021.45 per thousand board feet.
Looks like we won’t see the price of lumber decrease anytime soon, and with the housing inventory so low over the entire United States people are depending on the home builders create the inventory. With rising prices in lumber and ALL building materials, that may be a tougher task than people realize, unless they are willing to pay out of pocket the difference between appraised value and the cost to build.
Data courtesy of tradingeconomics.com.