Get Ahead of the Game: What You Need to Know About Lumber Prices for April 2023
At Peninsular Lumber, we appreciate and recognize that our esteemed clients who build custom homes and those seeking to complete lumber work projects are eager to know the expected prices.
In this article, we will provide a thorough, informative, and instructive update on what is anticipated in terms of the lumber price forecast for 2023. To offer the most precise information, we help our customers plan their projects accordingly. We know construction materials are significantly invested in custom home building and facelift projects.
Lumber Price Forecast for 2023 and the COVID-19 Pandemic
Like many other industries, the lumber market has experienced a massive drop in production for the past three years and has yet to fully recover. The production was largely due to the COVID-19 pandemic. The effects of the pandemic are still being felt even today in the lumber market.
Lumber supply decreased in 2020 and 2021 due to many lumber mills closing down after the pandemic. Lumber buyers stayed mostly at home doing DIY projects, and thus lumber demand remained high, forcing a decrease in supply. Even though many timber mills have since resumed production, the lumber market has yet to gain footing, keeping lumber prices high.
Even recently, the lumber market is still unstable. We expect the early months of 2023, including April, to be the same. We expect the lumber price forecast for 2023 to remain at pre-pandemic levels as April approaches. Nevertheless, a few small changes might be witnessed because of variables like the housing market, lumber demand, and interest rates.
Housing Market
One of the reasons why lumber prices will remain high or are expected to increase slightly further in April 2023 is the robust housing market. Generally, lumber prices are greatly determined by the housing market’s interplays of demand and supply. Many lumber buyers engage in custom house building and home repair projects, so the demand for lumber is expected to be higher.
Interest Rates
It is highly expected that interest rates will remain unchanged in the lumber price forecast for 2023, as has been the case in most of the early months of 2023. Interest rates remain steadily low, implying that more and more lumber buyers will be able to obtain mortgages to put into home improvement investments, boosting demand for lumber.
High Fuel Prices
The increasing fuel prices have greatly impacted the cost of shipping lumber, resulting in higher and higher prices for lumber generally. The price of raw materials that make logs has consequently increased, making timber prices remain unchanged for the past month or so, a scenario expected to repeat itself in April 2023. If changes regarding the pricing are witnessed, they will be minor.
Demand for Lumber
Although rising slowly over time, the past few years have recorded increasing demand for lumber. It is highly anticipated that this trend will continue throughout April 2023. Insignificant changes will be anticipated, though.
Demand for lumber will rise as more people spend money remodeling homes and getting facelifts. What that means is minor upward changes in lumber prices.
Pressure Treated Wood
We have keenly observed increased buyer interest in pressure treated wood in the past few months. Outdoor constructions, such as fencing and decks, have increased, and pressure treated wood, especially pressure treated lumber, is always a suitable option for that purpose. It is anticipated that the cost of pressure treated wood will generally stay the same or slightly increase as demand increases.
Thousand Board Feet
Normally, the price of lumber is expressed in board feet. In December of last year, the price of lumber was at its lowest level, going down to about $400 for one thousand board feet. The price has steadily gone up since then, and it is expected that April 2023 will record a price range of about $800 to $1,000 for a thousand board feet.
Finally, insignificant changes are expected in the lumber price forecast for 2023. We advise lumber buyers preparing themselves for custom home construction and our clients who like DIY on their construction projects to do appropriate planning.
Making lumber purchases in advance might save you a few dollars as future prices increase, even though we expect prices in April to remain largely unchanged.
Peninsular Lumber is always committed to offering you premium lumber at reasonable prices, despite external factors. We sincerely appreciate that our customers have made us one of their go-to lumber suppliers for their construction needs.
Visit our lumber store in Tampa Bay for all your lumber needs.
