The upward trend of lumber prices are taking a different route
When lumber prices reached record highs, construction companies across the nation took a hit. In the Black Hills, an increased housing demand added another twist in both materials and spending. Now, there’s a new trend that’s creating a more optimistic path for residential construction.
RAPID CITY, S.D. (KEVN) -The historic high lumber prices have affected a majority of residential construction but that may soon change.
“Now we are experiencing that people are saying, ‘No, we’re going to hold off just a minute just because the prices are extreme.’ Now we are seeing the prices come down, we’re nowhere near where we were when we started this uptick in the market,” said Daene Boomsma, owner of Boom Construction.
Boomsma says they’ve been seeing the market pricing decrease the last 45 to 60 days, which in turn will eventually influence the retail pricing too.
“Hopefully we’ll continue to see that, get back to that more stabilized market that we had honestly for quite a few years,” said Boomsma.
With the market starting to reach for a more stable trend, it’s hard to predict how prices will continue to look when the cause of the significant price increase is unknown. Boomsma says to strictly credit it all to supply and demand would be naive.
However, lumber prices aren’t the only increase Boomsma and his clients have to worry about, “We have these conversations with clients all the time, ‘When are prices going to come down, we’re going to wait.’ well new construction always increases in price,” Boomsma said.
He says every material’s pricing increases over time, especially around the beginning of each year. Boomsma also says he’s predicting the upcoming 6 to 8 weeks will be the perfect time for clients to start their home construction for a good value.
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