As sawmills have ramped up output and buyers put off purchases, both spot lumber prices and futures contracts have seen a sharp drop since May’s peak of nearly $1,700 per thousand board feet, the unit of measurement for lumber in the United States. …BMO analyst Mark Wilde predicts that “‘nosebleed’ prices won’t last,” according to a note via Bloomberg. He added, however, that lumber costs will remain “above-trend” for the next 1 to 2 years due to “strong demand, a limited supply response, and a rising cost curve.” …“Higher costs and declining availability for softwood lumber and other building materials pushed down builder sentiment in June,” said NAHB Chairman Chuck Fowke. “These higher costs have moved some new homes beyond the budget of prospective buyers, which has slowed the strong pace of home building. Policymakers need to focus on supply-chain issues in order to allow the economic recovery to continue.”
