PRINCE GEORGE–Lumber prices have finally started to go down recently after the pandemic raised prices by more than half. But now, almost the opposite is happening.
Back in May, the price of softwood lumber peaked at over $1,630 per thousand board feet.
Now that price is about $940.
Experts say the pandemic played a big part in skyrocketing prices due to the rise of DIY projects and hoarding of supplies. But with restrictions loosening, that sector is dying down.
“Repair and remodeling has come off, people are now getting out of their houses, and the priorities around going to visit families, maybe taking a vacation or just basically getting out of Dodge,” said Susan Yurkovich, President of BC Council of Forest Industries.
The construction sector has been steady, with supply and demand for products staying relatively the same. All thanks to the booming housing market.
“You also have a very large demographic group what we call “the household formation” age demographic 25 to 34. It’s bigger than the baby boomers and so those folks are all wanting to get into the housing market,” said Yurkovich.
Over at Capital Building Supplies Rona, General Manager Al Jones says that he hasn’t seen much change in the purchasing habits of customers.
“People are very cost aware and looking at the market and seeing if they need to do it or want to do it and kind of making their choice from there,” said Jones.
But even with prices down, Wood Product Consultant and Analyst Russ Taylor says it may take at least a year before prices stabilized.
“I think getting back to a normal level of $400 to $500 per thousand board of feet is still a year away,” said Taylor.
One of the reasons is because of an issue that’s been around since before the pandemic: transportation.
“There’s a chronic shortage of trucks, even before the pandemic, there was a chronic shortage of trucks and this is not gonna go away this year. This is gonna be an ongoing story,” said Taylor.
Prices are expected to remain near to where they are now, but Taylor says there may be a correction sometime in the fall.
“The market’s too volatile but we’re gonna see trends that’s gonna take us lower generally overtime.” said Taylor.
