Lumber Prices on the Rise

The National Association of Home Builders (NAHB) says that the building industry may be looking at lumber prices increasing this spring as high as 30% due to a low domestic supply and high tariffs on Canadian lumber. Negotiations on a new softwood lumber agreement between the United States and Canada came to a halt at the end of 2016 and are likely to be stalled pending the outcome of an investigation requested by the U.S. Lumber Coalition regarding unfair import practices. It is expected that further negotiations on a resolution between the U.S. and Canada are on hold until a new Secretary of Commerce and U.S. Trade Representative can be confirmed.
NAHBNow reports that “NAHB is urging domestic lumber companies to increase production and make it available for U.S. home builders. At the same time, the association leadership is in contact with lumber producers in other countries in an effort to open up new sources of supply.”