U.S. lumber prices continue to fall, as interest rates from the Federal Reserve Bank have climbed to their highest level this year, and rising borrowing costs have cooled the temperature in the U.S. housing market
U.S. lumber prices continued to fall, as the Federal Reserve Bank's interest rate has climbed to the highest level this year, and the increase in borrowing costs has cooled the temperature in the U.S. housing market. Home prices in the U.S. have been at record levels, while sales of both new and new homes have slumped. The new home sales figures released by the U.S. Department of Commerce on May 24 fell 16.6% from the same period last year, down 16.6% from the 750,000 new home sales in the same period last year, the lowest since April 2020.
As a result, my country's timber market has experienced an oversupply situation. Sawmills and builders are seeing a growing backlog as residential sales fall. In the future, if the demand for housing does not increase significantly, the supply of wood will continue to decline.
For the lumber industry, lumber buyers have delayed orders as inventories have risen and sawmills have begun to slash prices. Three-digit lumber purchase prices have become commonplace.