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Skyrocketing Lumber. According to AGGRECOST’s analysts suggest that home sales and price in the United States have no indication of subsiding. Tremendous backlog demand of project in the “hold” position have to be built and waiting for prices to subdue as an option is fading quickly.
Construction Lumber Material Snapshot
The United States and Canada’s demand for housing construction allowed the industry to end on a high note in 2020. It appears evident that 2021 will be a year bustling with prosperity within the real estate market and the unprecedented demand for multi-family housing. But of course with this amount of triumph, softwood lumber prices are set to rise again in North America.
According to AGGRECOST’s analysts suggest that home sales and price in the United States have no indication of subsiding. Tremendous backlog demand of project in the “hold” position have to be built and waiting for prices to subdue as an option is fading quickly.
Last week, Western S-P-F in America saw customers desperate to get their hands on wood. Businesses and producers sold out of material almost immediately. Western S-P-F in Canada noticed an increased inquiry for nearly every North American region. They have allowed their order files to be extended into the week of February 22.
The price of a quintessential 2×4 softwood lumber plank rose 5% or $46 within the month of January to February. Today, the end user item held a price tag on average depending on length of over $1200.00 per board foot delivered to most construction projects in the North East States.
In 2020, the 2×4 plank was selling for $402. Within the year, the cost rose to the of $940.
The lumber industry is appearing to have underestimated the backlog of multi-family projects and podium construction mix use building types. The demand for affordable housing is at a high not seen in years with no sign of subsiding. Canada tariffs have lightened in the end of 2020 did not seem to relieve any pressures or decrease in costs.
As additional sources of raw materials and mills going online to meet demand come to fruition its very difficult to anticipate a flooding of materials that will over supply the markets causing a price drop coming in to the busy starts season.