Someone yell timber.
June was the worst month on record for the lumber futures as prices for the homebuilding commodity are falling fast after an unprecedented run-up.
The lumber bubble has finally popped because demand eased and supply grew, CNBC reported.
Lumber futures tanked by more than 40 percent in June, the biggest monthly drop in data kept since 1978, according to the publication.
This comes after prices hit an all-time high closing price of $1,670.50 per thousand board feet on May 7, the publication reported. That’s more than six times its pandemic low last April.
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The price explosion stemmed from a combination of factors, notably reduced supply as mills dialed back production and surging demand by locked-down Americans for new and improved homes.
The lumber price spike alone drove up the cost of a new, single-family home by nearly $36,000, the publication reported, citing the National Association of Home Builders.
As the country reopens, Americans have pulled back on renovation and building projects and are instead planning vacations, the publication reported.
Lumber futures have fallen for six straight weeks, with the price down another 6 percent on Wednesday to about $710 per thousand board feet, according to CNBC.
[CNBC] — Cordilia James