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
BREAKING Trudeau promises $1B in loans for child-care providers to expand care centres
The federal government is launching a new loan program to help child-care providers in Canada expand their spaces, and will be extending further student loan forgiveness and training options for early childhood educators, Prime Minister Justin Trudeau announced Thursday.
Spring allergy season has begun. Where is it worse in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
N.B. man wins $64 million from Lotto 6/49
A New Brunswicker will go to bed Thursday night much richer than he was Wednesday after collecting on a winning lottery ticket he let sit on his bedroom dresser for nearly a year.
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
Multiple bridges in Calgary shut down for police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
King Charles calls for acts of friendship in first public remarks since Kate's cancer diagnosis
King Charles III gave public remarks for Maundy Thursday, addressing the importance of acts of friendship, following his and Catherine, Princess of Wales’ cancer diagnoses.