Lumber prices are falling in 2021 as the bubble surrounding the market pops.
So why are lumber prices falling now? Part of it has to do with homebuilder confidence. That’s at an incredible low as many had to stop building homes due to the rising costs of lumber prices in 2021.
It’s also worth pointing out that lumber prices in 2021 are the result of the pandemic stressing supply chains. That includes a lack of workers to move products, as well as demand increasing due to renovation and other products during the lockdown.
Kyle Little, the COO of Sherwood Lumber, said the following during an interview with Fox Business.
“I think ultimately this decline was very much inevitable. We moved up to extreme hyper highs here over the first half of 2021 after a record move in 2020. This adjustment that we’re going through right now is just that. When you have over a 400% price move in about a 15-month period of time, the volatility involved with that will lead to price adjustments like we are experiencing right now.”
The falling lumber prices in 2021 means customers might see them return to normal levels faster than expected. While the volatility in the market makes it hard to track, previous estimates weren’t expecting those prices to get back to normal levels until a good way into 2022.
If the prices keep dropping, customers might want to consider finishing those renovation projects they’ve been sitting on while prices were high.
Investors that are looking for more hot stock market news on Thursday can keep reading!
We’ve got a lot to discuss today as several parts of the stock market feel the effects of news today. That includes gold stocks taking a beating, Sunrun (NASDAQ:RUN) stock getting a boost, and Mattel (NASDAQ:MAT) making NFT plans. You can check out all of this news at the following links!
More Stock Market News for Thursday
- Gold Price News: Why Is Gold Down Today? GLD, GOLD, GDX, KGC
- RUN Stock: Why Morgan Stanley Thinks Sunrun Is the ‘Most Compelling’ Clean Energy Stock
- MAT Stock: 13 Things for Investors to Know About Mattel’s NFT Hot Wheels Plans
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.