The price of lumber has exploded over the last year and is considered by many as a bubble even with the increased demand for housing. It is expensive and new housing prices will reflect this cost.
Lumber prices have fallen from market highs in May, but now there is the report that the Biden Administration's Commerce Department will raise tariffs on Canadian lumber imports as an anti-dumping response. This should help consumers? The tariff would move to 18.29 percent for 2019 and would apply retroactively. Granted prices were lower in 2019 but the cost will apply to the market today. The anti-dumping tariffs decisions are not supposed to take into account the impact on consumers, yet we already see the impact on housing prices.
The increase in housing prices and shortages of lumber is having an impact on housing permits and starts. The feedbacks are not always clear, but high price will turn-away some buyers and builder activity will reflect declining consumer behavior.
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