Lumber Prices

[Tbar]

10pc - 1"x8"x16' cypress boards are costing me $600.00

[captainsling]

It’s not just lumber either. I have a friend that is an electrical supplier for Beazer and Perry homes. They are waiting on 250 electrical panels at the moment that are back ordered. He predicts the average 2200sq ft house will cost a builder $300,000 to build by the end of the year.

[captainsling]

Being on an East Tx timber lease right now is like playing Russian roulette.

The mills are not paying anything for lumber right now. They have it sitting on their lots and can’t cut it fast enough. That’s why the prices are so high. They are making a killing because of this.

[Mission408]

Mills shutting down from the virus is what I’ve been told.

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[Deadfall65]

Lumber Prices

at least McDonalds prices have dropped.

Wait until that new minimum wage goes into effect.


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[Russ79]

What do you think they are using to board up all the businesses in this country?

[Mayhem]

My wife works for a builder and between Covid and hurricanes it really hurt the Mills.

Try and get windows for a new build right now. Way back ordered.


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[friscopaint]

Bought 2x6x10 ww boards were $14 each couple yrs ago when built fence was less than $5 and last yr I whined about $10

[TeamAmerica]

Demand is high and add on Trump tariffs to Canadian lumber....tariffs have been reduced but not to zero.

"Commerce Department Cuts Lumber Tariffs from 20% to 9% | NAHB Now | The News Blog of the National Association of Home Builders" http://nahbnow.com/2020/12/commerce-...-from-20-to-9/

[Acameron52]

Man it sucks! I just broke ground on a new house. Luckily I’m building metal so the only lumber I need is for interior framing. But with the way it’s going I might be doing all my frame out in metal!

[RascalArms]

It’s a combination of things. Long term interest rates are at historic lows (and have been low for a while). Which means that people can afford to build bigger houses, thus elevating the demand side. Then you have large corporations controlling the supply side, and they are setting the market price to take advantage of the demand side. And the consumer is caught in the middle taking it up the shorts.

Walk into any lumber yard, and their lumber prices are 30-50% higher than they were a year ago. Then, go find 20-50 landowners and ask them how much they are getting for their timber (saw logs). I guarantee you that you won’t find a raw timber supplier getting 20% more for his trees this year than he was last year. So a reasonable conclusion is that the saw mills and OSB/particle board plants are controlling the price and market. GP is basically a monopoly (in the south at least)

All true...lots of things contributing to this perfect storm. But it’s mostly increase demand IMO. Ridiculously low interest rates and folks staying home during CV’s peak found out just how small their homes really were with everybody IN it.....so they want to move to bigger homes.

It’s not just lumber either. I have a friend that is an electrical supplier for Beazer and Perry homes. They are waiting on 250 electrical panels at the moment that are back ordered. He predicts the average 2200sq ft house will cost a builder $300,000 to build by the end of the year.

And this as well.....it’s SUPPLY and DEMAND!

We are having a house built right now and I am so glad we decided to not go Cost Plus like so many people suggested. We’ve been under a Hard Cost contract with our builder since July. He showed me his invoice on just the lumber package and his cost was more than 35% higher than when he bid it. Lumber and windows are stupid crazy right now. He ordered our windows the first week of November and they aren’t even in production yet.

[Heath]

Man it sucks! I just broke ground on a new house. Luckily I’m building metal so the only lumber I need is for interior framing. But with the way it’s going I might be doing all my frame out in metal!

Metal is 30-40% and rumors of another big jump in a few months.

[warrington]

Has any one built a home with aluminum studs like a wearhouse?

[Pony1971]

PINE has been taking more and more market share. It is stretching further north than ever. The beetle -kill situation for the Canadian producers has limited their production. We have seen numerous Canadian producers build and buy mills in the south.

But it is supply and demand. Demand for multi-family has been strong and now low interest rates allow buyers to ignore the additional cost of material. Supply has been impacted by covid for sure. Also some mills had to spend capital so there were some upgrades Transportation cost are up as well. But I can assure you, mills want to make as much wood as absolutely possible at these prices.

[Matt_C]

Mills shutting down from the virus is what I’ve been told.

That would seem to make sense since since there is usually a 6-month storage of stuff manufactured, then when there is an interruption in the supply chain (like Covid) the "they don't have anything and what is available is outrageous" thing happens.