Lumber Prices: Drama Galore

Real Estate News TV

Does anyone know if they’re up or they’re down? Yeah. Chat in now what you think lumber prices currently are. So here we are in June of 2022. Yeah. And we’ll see how this age is. And what we’re going to actually do is show you an article right here and have you take a look at it and discuss this real quick. I like the article name you do. Prices soared in half. All right. And what I’m going to have happen in the background, we’re going to all talk about this and we’re going to take a super quick poll. So we’re gonna do some stuff live and we’re going to push Omaha just a little bit. So who thinks that lumber prices are up or down or way up or way down? So we’ll give you four choices way up or just up, down or way down compared to what it was before the pandemic started. The answers on the screen. Well, we’re going to have we’re going to take a look to see exactly what’s going on. Right. So we’re going to see what people think. And then I’m going to have Omkar. Give me a quick Google, not live on the screen, but he’s going to maybe take a Google and put it up and put lumber prices in a chart and show what’s going on with the chart so you can see and we’re going to look from the past to now and see where it’s where it’s been trending at. All right. And so we’ll get all those things done. But for just a moment, we’re going to sit here and discuss why this is a problem. The lumber prices, it’s one input and lumber is a commodity and there’s a commodity price associated with it and they sell it by like the board foot. And so this there’s an index that tracks the lumber, the lumber prices. And with this, you can see and it compares a relative basket of linear footage, a board feet. And it’s some of this and some of that and some of this. Now, it’s it’s not exactly correlated. And I’ve had builders tell me that there’s not a direct correlation between the lumber index and how much you actually pay for lumber when you build a house. But it’s really close because you buy different things. Yeah, exactly. Right. So but they’re like, no, it doesn’t really do that. I’m like, Oh, okay. Kind of really just think about it. It has to. Be supply and demand driven. Yeah. So what we have here is we’re going to zoom over and we’ll show the screen. Now, you very well pulled up the lumber price. Index, although the lumber and everything is relative. So what he has here is this six month price of lumber. And if we’re going to go to a maybe slightly larger time frame, let’s go to five years and let’s see what we got for a year in five years and see what’s happened here. So and maybe go to Max and see if they show us even more. One over. Perfect. All right. So now what we’re looking at here on the max price for lumber is if we look back in the past historically and we were to draw a line, I’m going to grab the mouse for just a second and control this here and look across. So if you were to look at historically over a period of time, I would say that the average lumber price was, you know, for 2016 run. So if we look 2016 till 20 like 2019 when we had this this thing here, the number was about 400 was the average number for 2016 to 2018 range. We were at about 404 hundred for for this unit. Okay. And then the prices did go way out of control. We got up to nearly four times per unit. Well, it’s this it’s a composition of so many board feet. And again, it’s a super detailed question and I don’t know the exact answer, but it it’s like a basket of goods for lumber and somebody might know the exact definition or maybe omkar even charts that one in for us. So I know the exact definition, but you can see that it plunged because people thought nothing was going to go on right during the pandemic. So we got as low as 322 for that same basket. That was before. No, well, this is the pandemic and then the prices skyrocketed, then they whiplashed. Back then they went up and now they’re coming back down. And if you look way over here, it’s just a super --- Send in a voice message: https://podcasters.spotify.com/pod/show/realestatenewstv/message