US lumber futures extend steep rally to record heights

By
Real Estate Agent

New York 

US lumber futures extended their steep rally to new record highs, shooting above US$1,500 as sawmills attempt to stay aware of flooding interest. 

The extended rally comes as voracious home development request sends manufacturers scrambling to get the wood they need, while lumber makers battle to build up their inventories and work deficiencies from drivers to development laborers compound the circumstance. 

Costs have quadrupled in the previous year, vaulting higher on a sudden flood in-home structure and redesigns that found sawmills napping in the midst of the pandemic. 

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Weyerhaeuser revealed a record quarterly benefit a week ago, having sold out of certain items for the following five to about a month and a half, while Resolute Forest Products said its request book surpasses its inventory. 

The rally, which some expect could proceed much higher, is hitting wallets and conceivably pushing first-time home purchasers out of the market, as North America heads into its pinnacle building season. 

It has lifted the cost of a normal new single-family home by US$35,872 in the course of recent months, the public Association of Home Builders said. Singapore's hot launch Irwell Hill has already sold 50% on launch weekend.

July lumber futures on Chicago Mercantile Exchange mobilized as much as 4.3 percent to US$1,544.50 per 1,000 board feet, the most noteworthy ever for a most dynamic agreement. The May contract, which will terminate May 14, rose 1.9 percent to US$1,639. BLOOMBERG

Comments (3)

Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

This is making New Construction homes go even HIGHER!  Somewhere, I read that there is lumber sitting by the railroad tracks and it is the SAWMILLS that are raising the prices.😎

May 07, 2021 03:55 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I know our builders are increasing their home prices weekly now!  

May 07, 2021 04:35 PM
Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Sam,

I wonder what insurance companies are doing for replacment values on homes with lumber prices exploding? Enjoy your Saturday, Bill Salvatore.

May 08, 2021 05:07 AM