Lumber numbers: Prices dipping even amid high demand

Lumber prices fall as housing market cools Maritimers working on a home renovation project might be able to score a deal on lumber as prices continue to drop.

If you're among the scores of Maritimers working on a home improvement project these days, you might be able to score a deal on lumber at your local hardware store, but it's unclear how long it will last.

Overall prices continue to drop, partly because of a cooling housing market, but there are other factors at play as well.

In the sprawling lumberyard of the flagship store in the biggest locally-owned hardware chain in Atlantic Canada, Payzant, there's always a lot of action, especially in the summer season.

Managers note most of the inventory lasts barely a week before it's gone and replaced again.

They gave up making pricing signs because the prices change too often since the COVID-19 pandemic began.

At its worst, lumber prices soared to unprecedented levels, making headlines around the world.

They eventually fell again before levelling off. Now with the housing market cooling, there are suggestions they could be headed for the bottom – at least in the United States.

"We haven't seen any impact on that yet," said Vince Gauthier, Chief Operating Officer at Payzant. "The average consumer may not do as many projects as they were doing before, but they're still doing projects.”

Contractor Ken Wilson generally doesn't worry about that side of things, but Monday was little different.

"I don't normally buy the product myself," said Wilson. "I'm just here buying for my garage. But, yeah, [prices are] down, apparently. I just happened to be showing up at a good time."

Analysts say COVID-19, flooding in BC and inflation can be blamed for the volatility. Prices peaked in May of 2021 at nearly $1,700 per 1,000 board feet with hopes they would stabilize.

As of last month, the price of lumber dropped about 62 per cent. They're still falling, but there's more than housing starts behind it.

"The Canadian market and even the U.S. market has a huge increase on what the prices are," said Matthew Payzant, general manager of the chain from a store in Sackville, New Brunswick.

"And that demand in other parts of the country that have gone down has certainly caused the prices to go down here," he said.

With prices trending the right way for consumers, expect to see plenty of traffic in lumberyards for the foreseeable future.