At a time of year when housing construction across North America is usually slowing down to very limited activity, thus softwood lumber prices are usually quite soft, in the past couple of weeks there has been a resurgence of strong demand for solid wood products. Prices of dimension lumber commodities have responded upward accordingly, as Madison’s Lumber Reporter reported.
Underpinning the hot lumber sales and rising prices is continued extremely rosy US home sales and house price data. Lumber manufacturers in Canada and the US are experiencing such strong demand that sawmill order files are pushing out into the start of next year. Forest industry veterans and home builders with 40 years experience alike have never seen this situation toward year-end. All agree, however, that home sales, house prices, and home building will not reverse direction any time soon. Madison’s expects a hot US housing market to last at least to the end of 2021.