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Lumber prices are finally falling

Tim-berrr! The price of lumber is going down after setting an all-time record in May 2021.

HOUSTON — The bubble has burst! Lumber prices are finally coming back down to earth after a spring where they doubled, then doubled again.

Price hikes were being pushed by a nationwide lumber shortage, according to industry experts. Lumber futures dove more than 40% in the past month as demand dried up for $50 and $60 sheets of plywood. 

Homebuilders like Brad Olinger had to tell customers the price of their new home would be going up by $30,000 or more just because of wood prices. 

"It was $400 a year ago, and now it's up to $1,200, so it is three times the cost," Olinger said.

But now he and home rehabbers are getting a break as lumber is now a bit more affordable again.

However, the bad news is you shouldn't expect a dramatic drop in the price of a new home. 

The prices of other materials, such as drywall and copper, remain near all-time highs. Therefore, the cost of construction is still higher than it was a year ago.

More travel, less demand on home builders

Americans are getting back to their travel plans as pandemic restrictions loosen, so instead working on their homes, builders are hopeful that decreased demand will finally mean lower prices for construction.

While this won't reduce existing home prices. It should finally offer new home buyers a bit of a break, so you don't waste your money.

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