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Lumber prices rising quickly

27K views 232 replies 62 participants last post by  Treefarmer 
Strange times we are in. Seems we have a record number of people on unemployment that claim they can’t find work. Yet every store I walk into has a help wanted sign posted. ...
It sure is a strange time. Record unemployment, political parties playing 'hot potato' with stimulus packages, yet every store I go to is bustling with shoppers - especially HD and Lowes which never shut down in the first place. I guess people are too busy spending money to worry about earning it. My fear is all this stuff is being bought on credit.....and we are headed for an avalanche of credit defaults soon that will be yet another black eye for the economy.
 
One news tidbit I saw stated that the lumber 'shortage' has added $35K-$40K to the price of an average home build. IDK what 'average' means but if a $200k home is now going to cost $240k, that's $170 a month more on a 3% 30 yr mortgage just to cover this lumber bubble. What happens when lumber prices collapse? IMO people will be stuck paying a $240k mortgage on a $200k house. Cue the next housing market collapse.
 
If unemployment is really 3.8%, we can't blame the prices on everyone deciding to do home improvement projects while stuck at home. If anything, at these prices, I would expect a negative effect on starting any projects. So, why the insane prices on this stuff?
 
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