With the inventory crunch we saw earlier this year, more and more interest turned to new construction. With that, however, came soaring lumber costs, which Bankrate notes jumped more than 30 percent from January-May of this year.
The National Association of Home Builders says the price tripled in just 12 months.
Now, as lumber mills ramp up with production and catch up with demand, prices have dropped below $1,000, off 45 percent from their springtime peak.
Will the welcome drop in cost trickle down to homebuyers? Not quite, says the National Association of Home Builders.
Bankrate also notes that while some builders have added on lumber premiums during the price hikes, others postponed construction altogether.
Read more from Bankrate’s take on the lumber price push by clicking here.