(WJW) – Lumber prices have plunged from historic highs. But those prices aren’t being seen by consumers just yet.
In May, the price per thousand board feet ran $1,686.
The current price is $667 per thousand board feet. By August, analysts predict that price will be around $350.
“While the recent drop in lumber prices is a positive development, the lumber crisis is far from over,” Jerry Howard, CEO of the National Association of Home Builders, told FOX News.
He says most builders haven’t been able to take advantage of lower prices because the suppliers are still selling the lumber that was purchased when prices were sky-high.
In addition, COVID-19 has caused supply chain issues.
The spike in the price of lumber on its own has added $36,000 to the average price of a new home, according to the National Association of Home Builders.
Troy Merkel, partner and senior real estate analyst at Chicago-based consulting firm RSM, told Business Insider he is optimistic the market will normalize by the end of the year.