Has the cost of Lumber decreased?

Question

Hi everyone!

Seeing lots of news about the future market dropping for the price if wood. Are you seeing this reflected at retail? Has the cost of wood/material decreased? If so how much? Im rehabbing something in Hudson Valley - trying to decide if I should hold off on the extension for awhile.

Thanks!

Patricia Steiner · Answer

It may be where you're buying it.  A MarketWatch report posted the following after an earnings update from Home Depot:

"The company said the reason it was able to pass the big increase in prices on to customers was because demand has kept pace: “When we bring the product into the store, it sells.”

Our lumber suppliers have dropped prices and we're buying from those sources versus the big boxes.

Aaron McGinnis · Answer

Lumber *futures* have declined. Shelf prices have not caught up to futures.

Patricia Steiner · Answer

Lumber prices have dramatically declined since reaching an all-time high in May - as much as 50%.  And, as the price continues to drop so does the risk of uncontrolled inflation.  Here's an update less than a day old:  https://fortune.com/2021/07/07...

In my market, the cost of construction/rehab is continuing to increase due to labor; we simply don't have general contractors and trades to meet demand.  Appliances and furniture inventories are still low and back orders commonplace.  Windows and doors are finally being delivered!

At this point, economists are pointing to escalating gasoline prices as the greatest challenge to our economy.

We're moving ahead with our projects that we had on hold...hope this helps.

Aaron McGinnis · Answer

Futures are down, shelf prices are actually up from last month. The word I have from my suppliers is that we shouldn't expect shelf prices to drop considerably for a few months, at least.