Lumber prices decrease as the supply of materials increase, speculative trading action cooled and homebuilding demand eased. Lumber futures have tanked 42% in June, the worst month on record since 1978. The building commodity is down more than 13% in 2021, headed for the first negative first half since 2015.
Lumber prices hit an all-time high of $1,670.50 per thousand board feet, which was over six times higher than its pandemic low in April 2020 as of 6th May.
Lumber prices hiked up because of reduced supply amid mills shutdowns and surging demand for new and improved homes. At one point, the lumber shortage led to the average price of a new single-family home to increase by nearly $36,000, according to the National Association of Home Builders.
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