Lumber futures drop after sustained rise, signalling potential price drop for consumers
Building materials have skyrocketed in cost in recent months.
Lumber futures plunged further this week, seeing a price drop that hit 20% in a sign that the lumber market may finally reverse course from its dizzying price spike that occurred over the last few months.
The reversal was likely driven in part by a drop in homebuilding, which was down nearly 10% last month; general home repair also saw a similar decline.
Lumber manufacturers over the past several months have also been producing record levels of supply in response to the price surge.
Reduced demand may also account for some of the drop: Consumers over the past year fixated heavily on home-repair projects as millions stayed home for fear of SARS-Cov-2. But the lifting of restrictions and the widespread availability of vaccines have mitigated that trend to some degree in recent months
The drop in futures will likely begin to show up at the consumer level at some point soon.