Hill Street Studios is a location.
It was the first time since June that lumber prices went over $1,000.
The commodity is 42% below its all time high and up 127% from its recent low.
Steady demand for homes combined with dwindling supply is driving the volatile lumber prices.
The price of lumber jumped 5% on Thursday to $1,000 per thousand board feet for the first time since June as the commodity experiences heightened volatility amid supply chain issues and steady demand for home builders.
A wild 2021. After peaking at $1,700 in May, prices fell as much as 74% before bottoming out at $450 and then bouncing back to its current level. The commodity is up 12% year-to-date, but it is down 41% from its recent high.
There have been floods in Canada, sustained demand for homes in the US, and a shortage of single family homes.
Since 2015, the total inventory of single family homes for sale in the US has been decreasing. According to data from Altos Research, there are only 350,483 single family homes for sale in the US. On April 30 the figure fell to 307,000.
The demand for homes is being driven by record low interest rates, low mortgage rates, and an aging population that is graduating from student debt to mortgage debt.
David Russell of TradeStation expects the volatility to normalized going forward.
Russell told Insider that this was the aftershock of the huge earthquake. "After this, we will see the volatility decrease and things will start to calm down."
Markets Insider.
Business Insider has an original article.
