Since mid-April 2020, the average lumber prices have surged an amazing 80%. Moving from a low of $348 per thousand board feet (MBM) to $ 627 MBM as of July 31st. The National Association of Home Builders (NAHB) chief economist Robert Dietz said in prepared remarks that Average lumber prices have surged 80% since mid-April 2020, moving from a low of $348 per thousand board feet to $627 per thousand board feet as of July 31. According to NAHB chief economist Robert Dietz, this meteoric rise in lumber prices will add “thousands” to the cost of a newly built home, constrain new housing supply, and reduce affordability for new home buyers. At the same time, demand for single-family homes has risen, the result of the COVID-19 pandemic. New single-family home sales increased 14% in June to an annualized pace of 776,000 per year. New-home sales are up 3% in the first half of 2020, compared with the first half of 2019, while inventory sits at only a 4.7-month supply.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.