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Lumber prices could see massive 40% drop after setting record highs

Lumber prices
Posted at 5:38 AM, Jul 12, 2021
and last updated 2021-07-12 05:38:34-04

(WXYZ) — The bubble has burst! Lumber prices are finally coming back down to earth after setting an all-time record in May.

Lumber futures dove more than 40% in the past month as demand dried up for $50 and $60 sheets of plywood.

Homebuilders like Brad Olinger had to tell customers the price of their new home was going up by $30,000 or more just because of wood prices.

"It was $400 a year ago, and now it’s up to $1,200, so it is 3 times the cost," Olinger said.

While lumber is a bit more affordable again, don't expect a dramatic drop in the price of a new home.

Other prices on things like drywall, copper and steel remain near all-time highs, meaning the cost of constructing a new home is still higher than a year ago.

But with Americans now traveling again and not just working on their homes, builders are hopeful that decreased demand will finally mean lower construction prices.

While this won't reduce existing home prices, it should finally offer new homebuyers a bit of a break.

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