Lumber prices are continuing to descend from last year’s record highs, with the average cost hitting a new low this week.
The price of lumber dropped to $780 per thousand board feet on Monday, the lowest point for lumber seen this year. According to the Real Deal, prices dropped as much as 13 percent in the past week.
That’s good news for the home construction industry, which faced massive supply chain challenges in 2021—including sky-high lumber costs. Year-to-date, lumber prices are down 30 percent.
The pressure on lumber prices can be long lasting if the housing market slows down, according to Markets Insider.
“We expect prices in the long term to be challenged with the affordability and rising interest rate headwinds,” Sherwood Lumber COO Kyle Little told Insider last month.