The change in the price of wood suggests a ‘bubble that has burst’ – –

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The change in the price of wood suggests a ‘bubble that has burst’ – –


(News)
– Chris Skidmore’s fence is finally being built. According to KTVB, the owner of Boise, Idaho had one planned for his garden in March, but due to a shortage of wood and the resulting higher prices, he was quickly informed that the company he had hired ran out of wood. Now his project is back on the July calendar as “timber prices come down to earth”, reports the le journal Wall Street. After falling for two weeks, futures for July delivery ended Tuesday at $ 1,009.90 per thousand board feet, down 41% from a record high of $ 1,711.20 in early May. Spot lumber prices are also falling. (Floor Daily notes that these prices apply to softwoods, not harder woods used for flooring.) Journal notes that it now appears that “a bubble … has burst”, perhaps indicating that the records were only “temporary shocks”, not the start of a “period of soaring inflation”.

The rebound in supply and accompanying low prices may signal a return to normal in the residential construction industry, where chaos has had an effect on homebuilder confidence: Fox Business notes that, According to a new report from the National Association of Home Builders and Wells Fargo The housing market index, high costs and shortages in the supply chain pushed that confidence in June to its lowest level since August of l ‘last year, although there are still signs of “strong demand” in the housing market. Kyle Little, COO of New York-based Sherwood Lumber, notes that the recent price drop is not very surprising. “When you have a price change of more than 400% over a period of about 15 months, the volatility involved will cause price adjustments as we currently know it,” he said. (Read more stories about wood.)

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