It won't be long before we'll see Honduras mahogany or walnut offered as siding. 
Construction lumber prices
- Thread starter Willemjm
- Start date
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My experience is that once the rush is over, prices will probably no longer go up, but they never really come down much.
As an aside, one might do well learning to work with plexiglass or lexan. There's going to be a ton of it available after a few years.
2 items: 1 my next door neighbor is a rep for construction suppliers. He told me not to expect price drops for at least 2 years.
2 Just watched a YouTube short on who's getting rich on this price increase. The land owners, timber cutters, truck drivers, aren't seeing a pay increase. Likewise the retail folks use a margin to price products. Their profits only reflect their cost. SO....... What's happing here? The profits are being scraped in by the large lumber suppliers. This is Georgia Pacific, Weyehaeuser, and their likes. This YouTube guy did a lot of research on this post. It looks like he's RIGHT! ! !
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2 Just watched a YouTube short on who's getting rich on this price increase. The land owners, timber cutters, truck drivers, aren't seeing a pay increase. Likewise the retail folks use a margin to price products. Their profits only reflect their cost. SO....... What's happing here? The profits are being scraped in by the large lumber suppliers. This is Georgia Pacific, Weyehaeuser, and their likes. This YouTube guy did a lot of research on this post. It looks like he's RIGHT! ! !
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I own a fairly substantial amount of Weyerhaeuser stock WY. My basis is $22.58 a share (1/4/2019) and it's $38.78 as of a few minutes ago. I bought it because it was paying a near 5% dividend, not because I expected it to jump this much.
Another company I've been tracking is West Fraser Timber WFG. Their stock has been climbing steadily in the past year. It's a sawmill company and they're doing well in this environment too.
Here’s an article I read recently that helps explain part of the reason for the price increases (along with the increase in demand, of course) Bloomberg - Are you a robot?
So this is my question......how can the construction market be overheated? I have a pile of masks laying around and reminding me that we are in a pandemic. I vaguely recall, many news articles, just last fall that companies were seeing the value of "Work from Home". It would be highly unlikely that we would ever go fully back to the office setup. And the fallout from this would be a glut of buildings that are no longer needed. And did I not just see several news stories about businesses are starting to re-open but can't find workers, who would rather stay home on unemployment. So if a business does not want to build new buildings, people do not want the jobs that would include building, then can somebody please explain to me how the construction market can be overheated?
People who used to live in cramped quarters in large cities because they had to be close to work have effectively been liberated of their geographic constraints, and are moving to larger dwellings, either in their existing city, or often, in other cities. A lot of people are moving to be closer to family, now that their job doesn’t hold them captive to their location any longer.
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The construction market is overheated due to residential building being affordable as a result of extremely low interest rates.
I can confirm the residential real estate market being on fire. I had a listing over the weekend get 82 showings and 38 offers. This was 40 minutes north of Raleigh.
My wife and I were going to get a bigger home but the market is too crazy. We want to add on but lumber prices are insane. Just waiting and hoping lumber will come back down. Or we will frame the house with maple.
My wife and I were going to get a bigger home but the market is too crazy. We want to add on but lumber prices are insane. Just waiting and hoping lumber will come back down. Or we will frame the house with maple.
speaking of prices, I thought this was funny.
Hi woodworker200, Don't feel like the Lone Ranger. I bought a 2X4 at Lowes. After dealer prep & options I dropped $7.00. Thank God I only needed one. This really is high-way robbery.
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