Content Key Takeaways Summary:

-Lumber prices are currently at an all-time low, making it a great time for builders and homeowners to take advantage of the low prices.

-The price of lumber is expected to continue to fluctuate in the coming years, but will eventually rebound as the economy improves and the demand for new homes increases.

- builders are utilizing cheaper wood to offer incentives to buyers and lowering prices without affecting their profits. In order to make a return on their investment, home buyers need to be aware of this and factor in the long-term value of their purchase.

-Lumber stocks in North America are anticipated to grow in the next year as builders attempt to catch up with high demands. With more construction projects underway, lumber prices are forecast to rise again.

-Keep up with the latest trends in the lumber market to make smart decisions about when to buy and sell lumber. This way, you can maximize your profits.

-Consider purchasing now at the lowest prices and refinance later with lower rates. It's a win-win plan.

The Current state of the lumber market.

The lumber market has been extremely volatile since the pandemic started, with prices constantly fluctuating due to changing supply and demand. In April 2021, we saw prices reach an all-time high of $1,500 per 1,000 board feet as more people stayed home and began renovating or constructing their homes. However, as interest rates have increased throughout the economy in May 2021, we are now seeing prices begin to fall.

The early days of 2020's lockdown brought a drastic decrease in wood prices, but they soared that summer when suburban home sales surged and Americans stuck at home decided to remodel their living spaces. In an early sign of the inflation and broken supply chains that would hamper the economic reopening, according to the WSJ two-by-four prices nearly tripled the pre-pandemic record. Lumber prices have since fallen 70%, making a huge opportunity for builders and reconstruction to take advantage of the low prices before the next lumber boom.

As noted on Yahoo Finance, the Forest Economic Advisors (FEA), it is expected that lumber prices will continue to fall into next year, however, this price fall will not last long! Crystal Gauvin, an economist from the FEA implied they don't expect a future recession as we have recently.

"Housing starts will continue to trend down for the next few months, but we do not expect a sustained decline in starts. We are still projecting starts to exceed 1.6 million this year and 1.7 million in 2022."

Therefore, if you're considering starting a home project, it would be best to buy lumber soon! But don't worry if you can't, lumber prices are still expected to be lower than they were this past year.

What's next for lumber?

It is anyone's guess where the lumber market will go in the next few years. However, there are a few things that we can predict:

1. The price of lumber will continue to fluctuate. This is due to the volatile nature of the construction market, which is constantly changing in response to a variety of factors, including the economy, consumer confidence, and interest rates.

2. Lumber prices will eventually rebound, predicted for the end of next year. This is because the demand for lumber is still high, despite the current economic slowdown. As the economy improves and more people begin to invest in home improvement projects, the price of lumber will start to rise again.

3. The long-term outlook for the lumber market is positive. This is because the demand for new homes is expected to continue to grow in the coming years, as the population continues to expand and the housing market continues to recover from the recession.

Home builders are utilizing cheaper wood to offer incentives to buyers and lowering prices without affecting their profits. In order to make a return on their investment, home buyers need to be aware of this and factor in the long-term value of their purchase.

When it comes to lumber, it's always a good idea to buy low and sell high. By keeping up with the latest trends in the construction market, you can make wise investments that will pay off in the long run. Right now, lumber prices are at an all-time low, so if you're thinking of starting a remodeling or construction project, now is a great time to buy.

Lumber stocks in North America are anticipated to grow in the next year as builders attempt to catch up with high demands. With more construction projects underway, lumber prices are forecast to rise again. Be sure to stay ahead of the trends by keeping up with the latest news in the lumber market. This way, you can make smart decisions about when to buy and sell lumber, and maximize your profits.

 Conclusion:

Some may fear current interest rates, however, we can always buy the lumber at a 70% discount at current market prices and refinance late next year when lumber prices have risen and interest rates have dropped.