Close to half of U.S. Lumber suppliers now report excess inventory in a survey conducted by John Burns Real Estate Consulting LLC. This is a reversal from earlier in the summer when low supplies drove prices to unprecedented highs.
Last month, 49% of dealers and manufacturers reported excess lumber stores. This is in stark contrast to numbers gleaned in April when 40% said that they were "very tight" with regard to lumber supply.
Record setting prices have declined since May when sawmills were unprepared for a surge in home building and renovations. Producers responded with increased output. This coupled with shortages of other building supplies such as siding and windows that slowed the pace of construction has resulted in the excess wood.
The stock market has reflected a 70% decline in lumber futures since their peak; trading at $500 per board feet.
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