Lumber prices are skyrocketing again; even though in the second half of 2021 they stabilized to pre-pandemic pricing.
Why is this happening again?
Climate change, heavy rain and flooding in Canada has disrupted the supply chain. This has a massive repercussion in the US market since 25% of the lumber comes from Canada. Then there is the environmental reason for the beetle infestation. Also the US has doubled the tariffs on imports from Canada on the softwoods.
What does this mean to us in Real Estate?
It’s been said that lumber has gone up 200%.
This puts enormous pressure on the builders building new homes, making housing more expensive.
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