Lumber prices fall as home sales slump, industry looks for supply balance

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Lumber prices fall toward multi-year lows as pending home sales slump and industry searches for supply balance

prices fell toward multi-year lows on Thursday, falling 4% to $382 per thousand board feet as the industry continues to seek a balance in supply and demand.

"The lack of housing inventory is a major constraint to rising sales. Multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Limited housing supply is simply not meeting demand nationally," NAR chief economistThat means the housing market needs more supply to come online in the form of new homes, which should boost demand for lumber.

"While there are pockets of hope, the broad industry is still challenged with getting supply in check to meet the new demand curve. The narrow trading range indicates that we are very close to equilibrium," Goodman told Insider on Thursday.

 

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