Why the price of lumber doubled during November
Lumber prices are the highest they've been since a record was set this spring, meaning Canadians will be shelling out more for new homes and building supplies.
Jason Zarrillo runs Stand Tall Contracting, a general contracting business in Winnipeg.
Due to price uncertainty, he had to create a rule that quotes are only good for 30 to 60 days.
"It's been really difficult for us and frustrating for us because we want to give the best prices," he said. "With the volatility of lumber going up and down, our prices constantly fluctuate."
In November, lumber futures were trading on the NASDAQ at $606 per thousand board feet.
Fast forward to December, and it's now $949 per thousand board feet—about a 40 per cent increase in the span of a month.
While a large jump, the current price for lumber is still about 45 per cent lower than the record high set in May.
According to the Western Retail Lumber Association, a major factor in the recent cost increase was the B.C. flood.
"A lot of the lumber production that supplies both Canada and other export markets come from B.C. The impact of the weather has put a lot of strain on the transportation and the ability to harvest logs," said Liz Kovach, president of the WRLA.
Another reason for the rise in prices is the booming housing market.
"Manitoba's residential builders are continuing to see strong market conditions and housing starts, and multi-family and apartment construction continues to be very strong," read a statement to CTV News from Lanny McInnes, president and CEO of the Manitoba Home Builders Association.
On top of high demand in Canada, a new 18 per cent tariff on softwood lumber implemented by the U.S. in November prompted American buyers to stockpile.
"In preparation of that, our mills did see some order files increase from the U.S.," said Kovach.
According to Kovach, expensive lumber is here to stay, but the price could drop in the coming days.
"The prediction is, is that the prices will not go back to where they were, and then in 2022, we will start to see them come back down. But our crystal ball got broken a long time ago, so we aren't 100 per cent sure," noted Kovach.
With lumber prices set to remain quite high, it means builders and contractors will be forced to charge more.
"So what happens is we have to pass that on to the consumer, and unfortunately, they are going to have to pay for that," said Zarrillo.
CTVNews.ca Top Stories
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.
Woman, 18, killed by co-worker's vehicle on Highway 1 in Moose Jaw
Moose Jaw police say an 18-year-old woman who was at work has died from injuries she sustained in a collision with a vehicle being driven by her co-worker last Thursday.