U.S. lumber prices continue to fall
Higher borrowing costs have cooled the US housing market as Federal Reserve interest rates have soared to year-to-date highs.
Us home prices are hovering at record highs, while new homes and new home sales have both fallen.
New home sales fell for a fourth straight month to 591,000, down 16.6% from a year earlier, well below market expectations of 750,000 and the lowest level since April 2020, Commerce Department data showed on May 24.
As a result, the timber market is experiencing an oversupply.
With fewer housing transactions, sawmills and builders are stocking up on lumber. In the future, if housing demand does not surge and timber supply continues to surge, prices could continue to fall.
For the lumber industry, lumber buyers have delayed orders as inventories have risen, sawmills have begun slashing prices and triple-digit discounts on lumber purchase prices have become common.
