Did anyone expect this pace of correction?
Over the years, we have shared the physics of the lumber market in simplistic terms, what goes up must come down and the higher the climb, the harder the fall.
What was a historic run up in prices has now shifted to
a historic downward dive.
Prices are finally reverting back to pre-pandemic means. Here’s a few conditions that have lead to the recent shift in lumber market conditions and prices:
- The DIY market has declined. Consumers are choosing other options than work at home projects, such as travel. Current lumber prices also served as a deterrent to DIYer’s.
- Demand from homebuilders fell. New home construction in May was down 8.8 percent from the 14 year high in March.
- Enough is simply enough! Those that stood on the sidelines pausing projects until lumber market corrections were made had an impact on lowering demand.
- As prices hit all time highs, mills increased production. With prices now falling, they are left with more supply on hand, therefore driving down prices.
In a nutshell, as the market continues to search for the bottom and
return to pre-pandemic levels, expect Trio to do everything possible to
educate and service you.