What Do Falling Lumber Prices Tell Us?
Welcome to the Real Estate Espresso podcast, your morning shot of what’s new in the world of real estate investing. I’m your host, Victor Menasce.
On today’s show, we’re going to connect the dots between new home construction, demand for lumber, and home sales. We’ll also answer the question: Is this a possible boom for rental properties?
Lumber prices peaked at $695 per thousand board foot back in early August. Only four weeks later, they were down to $525 by Labor Day weekend. They have since rebounded to $576 per 1,000 square foot. But that’s a huge swing in a matter of days. It’s like the bottom fell out of the market.
At the same time, the White House imposed new tariffs on Canadian lumber. Now, we’re seeing a drop in lumber prices, a fall in demand for lumber that is outweighing the addition of tariffs to the imported lumber.
If you’re thinking about starting a construction project, you might want to get on it. Get it in the ground. Get started in the fourth quarter or first quarter. As you think about that, have an awesome rest of your day. Go make some great things happen. We’ll talk to you again tomorrow.
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