Lumber prices are crashing. Are you seeing this in your market? Put some comments below and let us know what the lumber prices you’re seeing as a contractor are. According to the Wall Street Journal, lumber prices fall back to pre-COVID levels. Rising interest rates have taken an ax to one of the pandemics’ hottest commodities. That’s a good pun right there. Lumber prices have fallen to their lowest level and more than two years. And it’s now at $410.80 per thousand board feet. This is well below $500. It’s still above what it was in 2017 or 18 in the threes. But it’s pretty far down.
Is this showing up in your area at the retail level? At the contractor level, are two-by-fours, sheet goods, and millwork coming down in price? And now there’s availability as well as a builder? Is this affecting your bid quotes or your lumber packages? One of the problems is home prices are still high, but nobody’s buying them because of interest rates and inflation. But there may be an opportunity for remodels and additions. Even new construction might be a hedge right now because you could build a new house cheaper and then put it on the market below the price of a resale home that’s still priced too high. It’ll take a year to turn around a spec house anyways. So is this an opportunity for a builder to build a house? That’s assuming you don’t have rehab or addition jobs lined up. What are your thoughts Is this a time to jump in and try to build a house when lumber prices are back down waiting for the next bump? Or is this the beginning of a longer-term crash?