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Re: Lumber price prediction


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Posted by jimg.allentown on January 20, 2021 at 13:28:01 from (70.15.135.123):

In Reply to: Lumber price prediction posted by John in La on January 20, 2021 at 06:55:58:

There are a lot of factors at work here. First thing is inflation. If the government keeps printing and handing out money by the billions, inflation will inevitably follow. To what degree is open for discussion.

Next thing is economics 101. Supply versus demand. As prices rise, demand falls off. As demand falls off, prices tend to fall off as well. At some point, they stabilize. Here in this economic climate, demand rose because of the travel/work/stay home restrictions. Supply fell of because of illness and restrictions. These two factors led to higher prices and scarce supplies. Same with paper products and sanitizing products.

When folks return to work in more normal numbers and demand falls off due to high prices or return to normal routines, prices will stabilize.

This is my observation and opinion.


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