Keta Kosman: Lumber prices reach the top, increasing U.S. home price by $40,000

The increase in the lumber price over this year put the value of the U.S. home higher by $40,000, says Keta Kosman, the publisher of Vancouver based Madison’s Lumber Reporter. She forecasts a very strong lumber market and U.S. housing all the way to the end of 2020.

Lesprom Network: The decline in prices for lumber and COVID-19 have negatively impacted the demand for lumber resulting in a reduction in manufacturing capacity in Canada. Has production reached the minimum level and can we expect a return to capacity growth in the near future?

Keta Kosman: The COVID-19 affected Canadian production a lot more powerfully than it did in America. Last year, 2019, was not very good for forestry. At the end of 2019 U.S. housing started to improve and at the beginning of 2020 lumber demand really looked good. When the pandemic came, the Canadian government made restrictions on manufacturing, and everything was closed for approximately 6 weeks.