Good News for Louisiana Home Buyers – Lumber Prices Plummet
If you are contemplating a construction project that involves the use of wood then there is good news for you. The price of lumber has dropped significantly from its record high price of just a few weeks ago. Okay, the price is still in the stratosphere when you compare how much pre-pandemic lumber costs, but at least you won't have to hire an armed guard to watch your lumber pile on your construction projects anymore.
Back in March of 2020, the price of lumber was noted to be $303 per thousand feet. As the pandemic strained the supply chain, naturally the price of wood began to rise. By the first few weeks in May of this year, the price for that same amount of lumber had jumped to $ 1,686 per one thousand feet.
As of yesterday, it was noted that the price of lumber had dropped to below $900 per thousand feet. That's almost a price drop of 50% compared to the record high prices in May but still three times the price of lumber in our pre-pandemic world.
Experts in the lumber industry say that as COVID restrictions have eased the supply chain is beginning to recover. Statements like that seem to suggest that lumber prices will continue to normalize as the summer months go on. This is certainly welcome news for anyone involved in construction and for anyone who might be contemplating a construction project.
Now if you're familiar with the old saying "what goes up must come down" you might think that lower lumber prices would lead to lower housing prices. According to Tommy Pinion, the President of the Louisiana Homebuilders Association that might not be the case.
Pinion was quoted in an article published by the Louisiana Radio Network saying the uptick in lumber prices added an extra $36,000 on average to the price of a new home. However, Pinion doesn't expect the drop in lumber prices to be reflected by a drop in the price for a new house. That's because the housing market is absolutely red-hot.
But at least, if you were going to build a small project, like a treehouse you wouldn't have to take out a second mortgage just to build a place for your kids to play.