Lumber costs dropping, but supply chain experts advise waiting to buy a home
Those buying a new home or planning a renovation have experienced the price pinch as the cost of lumber increased this year. The good news is costs are coming down.
Last spring, in the midst of a construction boom, the cost of lumber skyrocketed to a 13-year high.
North Carolina State University supply chain management expert Robert Handfield said what goes up, must come down.
"I figured it would come down at some point," he said. "But, no one saw it coming this fast, I think."
Handfield said the price of lumber followed high demand as coronavirus pandemic restrictions faded.
According to Fortune magazine, on May 28, lumber cost $1,515 per 1,000 board feet. By mid-June, the cash price dropped to $1,113 - a 27 percent drop.
"It's still down, but it's still up a lot from what it was," cautioned Handfield.
Handfield added that people in the middle of buying a home should not expect to see a discount due to current lower lumber prices.
"A lot of that lumber was already purchased or was already paid for," he explained.
For others, Handfield said it's a waiting game.
"I would advise people, if you’re building, hold off," said Handfield. "Don’t do it just yet. You’re going to pay peak prices if you do it today."
While lumber costs are headed down, Handfield said that builders are also dealing with higher costs of other building materials, as well as higher costs of labor.
