This is a YouTube video titled "🚨 Lumber Price drop hasn’t necessarily slowed down Home Values 🚨" containing a monologue by Derek McGowan from July 22, 2021. In this content, Derek discusses the lumber market dynamics, including price drops, demand shifts, retail inventory issues, and challenges faced by builders, providing insights into how these factors impact home values.
Although the price of lumber is down about 50% from previous highs, the demand for lumber is starting to dwindle a little bit. Consumers are putting more money into travel instead of home improvement projects. And this is just talking about softwood lumber. If you look at manufactured wood used for payables, that's still up 500% from the pre Covid levels. And retailers are still sitting on wood that they bought at a premium, so they're not selling it at a discount. So it hasn't trickled down to the retail side for builders. Builders are also having issues with buildable lots, skilled labor regulations holding them back. So if you find that perfect combo, it's not coming at a discount. So the jury out if the lumber prices are actually going to slow down, the rapid increase in home value.
