NORFOLK, Va. — Lumber prices are finally coming back down to earth after a spring where they doubled, then doubled again.
In the past month, futures have fallen 45%.
Still, it’s not enough to offset the 300% price hikes caused by a nationwide lumber shortage.
According to the National Association of Home Builders, that spike pushed the cost of construction for a single-family home up by $36,000, on average.
The reason for this recent drop in prices comes down to basic economics. Due to prices being so high, people were cutting back on costly home projects involving lumber. At the same time, sawmills increased production, incentivized by the higher sale prices.
Here in Hampton Roads, we’re getting varying feedback from people in the industry.
Joe Stuck with Hardwood Specialties in Hampton said he hasn't seen that sharp drop in prices - he called it more of a plateau – but it’s still something he’s optimistic about.
“I try to keep the glass half full,” said Stuck. “It seems as though it’s showing signs that when the price starts to decrease it’ll stimulate the industry because more people will buy product at a lower price.”
It could still take weeks, even months, to see any price reductions in the big box stores like Lowe’s and Home Depot.
And even then, it’ll likely be much longer until we see pre-pandemic prices again.