Lumber prices going down

[HoosierBuddy]

I thank God I got my garage built 15 years ago.

 

[gagecalman]

The thing with it is they say Covid caused driver shortages. Then they say Covid stopped production. It's always an excuse but never a real reason, they are money hungry and capitalizing on low interest rates and people are still buying it. If everyone stopped buying the overpriced stuff then it might drop but that's not gonna happen.

I feel like this is the new normal. Now it's chlorine and chicken wings. Report there's a shortage and raise prices. I paid $80 for a 40lb bucket of 3" tabs in 2019. I just bought a 35lb bucket for $115. A 60% increase. It's getting harder to find as well.
BTW they're building a lot of houses here in Baltimore County.

 

[Dumber than lumber]

Price increases are the **** thing these days:
Toilet paper? Check
Ammo? Check
Gasoline? Check
Bitcoin? Check
Lumber? Check
What’s next? Feel free to add your observations.

 

[zippyslug31]

How is this affecting homeowner’s insurance rates - with rebuilding costs up

I recently switched homeowner's insurance COs and this was a topic. The agents do take this into consideration these days. My house's replacement value was marked up higher due to the higher cost of construction. Seems safe to assume that these higher replacement costs are reflected in higher premiums.

 

[HPRifleman]

I recently switched homeowner's insurance COs and this was a topic. The agents do take this into consideration these days. My house's replacement value was marked up higher due to the higher cost of construction. Seems safe to assume that these higher replacement costs are reflected in higher premiums.

Trust me, they are.

 

[pl_silverado]

What’s next? Feel free to add your observations.

AMC & GamesStop Stock....soon.

 

[nadogail]

When stores start advertising sales on lumber, I will resume hope of the situation returning to a normal state.

 

[Robbie B]

 

[Hobby_Man22]

I guess they went even higher because now it's like $8 for a 2x4

 

[dirtybrownracing]

If people would quit paying stupid prices the prices would go down. Home building around here has pretty much ground to a halt, you can't spend $400,000 building a $250,000 house, it just doesn't add up.

This is the simplest answer of all. Customers drive prices.....

 

[Bad Habit]

And need (perceived or real) drive customers...

 

[u2slow]

I've bought maybe $250 of dimensional lumber since this gong-show started. I'll wait thanks.

Next week I'm picking up a bunch of free slab/cants (from a local backyard mill operation) to use for fencing.

 

[nadogail]

Anyone with a lumber pile has an appreciating asset; probably better than the Dow.

 

[Bretny]

My garage I pre-purchased the OSB over the winter. Price locally has now increased to more than $25 a sheet more than I paid for it. At least 6 months before there is any relief.

6 months...we will be just on the tail end of hurricane season. The prices will still be high for at least a year.

 

[smackey05]

Still $8.25 per 2x4x8 here in Massachusetts at a big box store.

 

[slowtwitch73]

"Sometimes I think it's all about managing expectations. Let's say OSB is selling for $10 and all of a sudden it's run up to $60 for a while. Now when it drops to $40 people will think that's cheap.

When stuff goes way up in price temporarily it almost never comes back down close to the former level. A new price standard is then established."



Correct. 50 cent gas anyone?

What goes up may come down... but not all the way. Life 101.

 

[andyvh1959]

Lumber prices going down slightly, just as we enter hurricane and tornado season. Prices go with demand.

 

[JunkBonds]

Economics 101 what goes up must come down.

There are a lot of things that have caused the price increase based on my research. The two primary reasons I have found is big lumber greed
and the futures market. Both have driven up the price.

Greed? Hardly since that is the essence of any free market economy.

It is purely supply and demand. You can raise the price to any value you want (greed) but if the demand does not support the price you will not get that price.

 

[reader2580]

Greed? Hardly since that is the essence of any free market economy.

It is purely supply and demand. You can raise the price to any value you want (greed) but if the demand does not support the price you will not get that price.

I don’t know how supplies are at wholesale for the big construction companies, but the big box stores have plenty of stock on hand. I’ve seen stores with lumber stacked to the rafters.

 

[73fxe]

I payed $185. for 2 sheets of 1/2" OSB and 12 2x4s today after checking prices at the 3 big box stores. If I have any extra 2x4s I'll return them. Insane prices but I can't finish the remodel of the Sunroom without it.

 

[welder4956]

7/16 OSB is currently $49.25/sheet here at Lowes. $49.05 at HD. Looks like there is plenty in stock.

 

[ItsNemo]

$10.98 for a standard 2x4x8' here...and still on the rise.

 

[Jlbc212]

Simple economics - an increase in the supply of money without a corresponding increase in the supply of goods to be purchased will cause increases in prices, aka "inflation." It best to buy any tools on the wish list now as your money will only continue to decrease in value. Actually it would have been better to have bought things last year before all the "free" money in the form of stimulus checks got sent out. I warned my family and friends last year the "free" stimulus money they would be receiving wouldn't be enough to offset the coming price and tax increases.

 

[HoosierB]

Took this picture at my local Lowes this past Saturday (6/5/21). 7 days prior, the price for the very same 2"x4" framing stud was exactly $1 less. 1 year ago that same stud was trending around $1.98. Prices in our area continue to go up........

 

[ddurrett896]

"Sometimes I think it's all about managing expectations. Let's say OSB is selling for $10 and all of a sudden it's run up to $60 for a while. Now when it drops to $40 people will think that's cheap.

Beast can scenario when it drops, people don't know $40 is the bottom and will continue to watch in hopes that the price drops further.

 

[NUTTSGT]

Local Menard's list a 2x4x8' for $11.23.

Looking at the other stores (search other stores) inventory levels, between those 12 stores, they have over 92.5K in stock in total. This doesn't count Lowes, HD, 84 Lumber or any other smaller local yards.

 

[Antoin]

Prices are going crazy over this side of the Atlantic as well.
Covid and Brexit are being blamed.
Everything is going up in price except my wages!

More people not being able to go on holidays has led to them spending their money on upgrading their houses, adding extensions, building extra sheds/ bars so that has pushed the price of materials and the price of the tradesmen up.

 

[Walkers]

Apparently the uber wealthy are now shopping at HoDe. Just yesterday I saw a guy in a brand new pickup loading 20 sheets of OSB into the back.

 

[slowtwitch73]

Cave Creek..... least he didn't load it into his Lambo.

 

[Matt The Hammer]

I just bought a house to use the wood it's made from.

 

[sixty4]

I have someone looking at a house that I am selling. His excuse is price of lumber right now, that's a good reply!

 

[Slednut]

I went to our local lumber store last night, bought eleven 2x6x10s and three sheets of 1/2 inch CD ply wood to install a loft in our shed. Cost just under $600 after tax.

The 2x6x10s were $30.75 each and the ply wood was $69.97 each. This place has really nice lumber but that was ridiculous.

We have another place in our little town where lumber is a lot cheaper but it's crappy.

 

[safnd2021]

I believe this is wrong. I paid $204 for 32' I joists they are now $290 at menards...

 

[Sumboodie]

Going up here. 8ft 2x4 at $10.36. Used to be $2.

1/2" OSB is $70. Used to be low to mid $20 area.

 

[MushCreek]

7/16 OSB is currently $45 here; down from $50 a couple weeks ago.

 

[jeremymayf]

Lumber Prices Post Biggest–Ever Weekly Drop With Buyers Balking

(Bloomberg) -- Lumber futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases.Prices in Chicago fell 18% this week, the biggest decline for most-active futures in records going back to...

finance.yahoo.com

It doesn't look like prices are going to revert to pre-pandemic levels anytime soon, however, this article indicates that lumber futures fell approximately 18% this week--largest decline in a few decades. Supply is catching up, perhaps the beginning of a return to sanity?

 

[Jazz1]

I was shocked when friend told me average garages he was erecting cost owners $50k to $60k
Insurance company informed me replacement cost of my garage is $96K. I built myself from a $8K package 25 years ago.

 

[welder4956]

7/16 OSB is currently $49.25/sheet here at Lowes. $49.05 at HD. Looks like there is plenty in stock.

7/16 OSB at Lowe's has gone up to $50.05 here vs. $49.25 last week. 2 x 4 x 8 studs are $8.79. Not dropping yet here.

 

[Beau Nugget]

Lumber Prices Post Biggest–Ever Weekly Drop With Buyers Balking

(Bloomberg) -- Lumber futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases.Prices in Chicago fell 18% this week, the biggest decline for most-active futures in records going back to...

finance.yahoo.com

It doesn't look like prices are going to revert to pre-pandemic levels anytime soon, however, this article indicates that lumber futures fell approximately 18% this week--largest decline in a few decades. Supply is catching up, perhaps the beginning of a return to sanity?

Just because futures are going down doesn’t mean you will see lower prices in stores right away. For proof of this look no further than the beef industry. Prices paid to producers pale in comparison to the massive profits being generated by the beef packers who put the product in the supermarket.

 

[karoc]

Sorry wrong area