When Will The Cost Of Wood Go Down?

hi jeff here from home running vision diy today we are going to answer the question when is the price of lumber going down right like it's been a little bit crazy this year we did a video a few weeks back talking about the crazy price of lumber and what's going on in the industry and we talked about some of the factors in the marketplace that were driving that price and you know i wanted to say thank you to everybody who commented and liked that video and put information there about the region you live in because the truth is the price of lumber is a regional issue okay so i want to just have a quick discussion we're going to answer the question when is the price of lumber going down at the end of the video but i've got a quick warning for you as well today all right so let's just get into this i live in canada just for a little bit of information and we supply the united states with a lot of softwood lumber and we also produce our own pressure treated lumber in our own regions for our regions okay we don't we don't ship it back and forth across the border treated already because the truth is is the pressure treated lumber in the united states has a different formula because you guys have you know to deal with the termite issue generally speaking in canada because we have freeze thaw we don't have termite issues here so we have different formulations so our wood up here isn't any good to be used in the united states and and so as a result we produce our own the supply chain issue in canada i think is a little bit different the united states and part of the reason the video today is to get you to engage and let me know as a tool for other homeowners okay let's just go right into this again if you're in california or texas or florida or the midwest or out east i want you to put in comments and let us know because the prices have gone through the roof and we know that they're huge and we know that the supply is stabilized now but part of that could be because less people are willing to purchase the price the product at that price point okay we've reached that threshold of dissuasion okay now all the homeowners are out there who are out of the market because the price are now going when is it coming back down so that i can buy again i'm going to talk about canada because i got on a two-hour zoom call the other day with the folks who purchased the wood from the mills and are in charge of the supply and the treatment of pressure treated lumber and then they supply the guys that put it on the shelf for you okay and they gave me all the insider baseball and what's going on in the marketplace and what i'm going to share today might be different in different regions this is definitely an ontario issue so i'm going to share what's going on here in canada and if you've got a different experience then please let us know in the comment section what's going on in canada is really simple we have a different approach to dealing with the covet virus and we have all kinds of rules in place so if we have too many cases of covet in a workplace they actually shut it down and everybody has to take a few weeks off can you imagine what that does to a supply chain because these factories are massive making pressure treated lumber and they can do millions of board feet every day it's unbelievable what they can produce so when you take two weeks out of the equation you're taking like 10 or 15 million board feet of product off the shelf and that has a severe consequence because like i said before we can't just buy the lumber from the united states and bring it across the border right this is the problem we supply our own pressure treated lumber up here so part of the problem that we're seeing up here is when uh when a company just goes to the mill says hey give me 10 container fulls or 10 railway car fulls of lumber they say thank you for the order we're going to give you two and they're under supplying even when they make the order because there's just not enough product going around okay and that's one of the reasons why our price has gone through the roof when it comes to our pressure treated lumber it's a very unique situation up here and i'm curious to see if you have the same thing going on down in the states or if you have other supply issues in the united states that are causing your lumber price to go nuts but here's the deal while we were having that phone call i found out and here's the warning i found out that the price of lumber is actually going to go up again we have another major price increase coming and here's the background on it april 1st retailers raise the price again on lumber okay and the way that it works at the retail level is they do a rolling history on the price of lumber and every 13 weeks which is a quarter of a year they'll do an adjustment on that commodity whether it's up or down and they'll change the price it's a lot of work to change it on a daily or weekly basis so they do it every quarter all right and since april 1st and we're only like what may the 11th here since that time the wood price has had four major increases at the mill to the suppliers okay so there's guaranteed another price hike coming because let's say i'm a box store and i'm bringing in a bunch of wood and i'm buying at this price and i'm selling it at this price and then two weeks later i'm buying at the same price that i'm selling it at and then a week after that i'm selling it for more for i'm losing money on the sale i'm telling you right now they're gonna get that back they're gonna claw that profit back by raising the price july 1st if you're going to be doing a project this summer do not wait till the middle or late summer for the price to go down if you live in canada it's going up again okay just the word of the warning you get to decide if you want to bite the bullet and do your project at the current prices but it's not going down it's going up now as far as when the price is going down i got some good news but before i get into it i just wanted to share if you haven't heard we have a brand new home renovation buyers club going on we have sourced out the opportunity to get you contractor pricing i want you to head over to homerenovationdiy.com and check that out take a look at those links you can download some quote forms we're going to have videos on our website and all that information we'll put a link up here and in the video description so you can check out that announcement video we're very excited to share that with you because what we're doing is we're making it possible for you to get contractor pricing and get the highest quality product at the lowest quality price in the marketplace it's going to be a game changer now let's jump right back into this video now listen if you guys like getting information that's going to affect your wallet before it changes then give this video a thumbs up because we are in conversation with the people who are setting the price and so we're always going to be bringing you information before you find it in the shelf okay that's our goal here to be your advocate and get that information to you so you can make informed decisions now as far as what's going to go on as far as the price coming down here's the good news a lot of the factors that were in play that were causing the price to go up have been corrected okay resins are being produced again supply chains are corrected the shipping is a little bit back to normal we still have a lot of supply and demand issues because of the low interest rates and the housing booms so it's not going to come down real fast but overall this the feeling is is that when we get past the summer and into the fall that's when the price of lumber is going to hit that peak and start to curve back down again now what you're probably going to find is that the one year increase is going to take two years to come back down to what we're going to call the new normal okay because just to set the record it's going to be 20 to 25 dollars for osb moving forward after we get it correction is no longer going to see 8 10 or 12 okay it's going to be 20 to 25 that's just the way it's going to be generally the feeling in the marketplace is that lumber has been undervalued for the last five years leading up to this point all right and so as a result there's a lot of corrections that are happening in the marketplace and we're just going to have to deal with it all right the governments are not going to intervene and do anything to help us out with the price of lumber they're all broke and they are loving the fact that the price is three times as much and they're getting three times as much taxes from you as you renovate your house and are motivated to do so with the interest rates in the housing market boom so they're off the table there's no help coming from them all right they're they're just absolutely loving this okay so we're on our own it's going to go back down to normal it's going to be a supply and demand issue so we really got to take into account can i wait two years until it gets affordable the affordability question is really nominal it all comes down to am i planning on selling right now if you're going to go in out in this marketplace today and buy wood you're going to be surprised because we don't just have high prices we've got a quality issue as well because what's happening at the retail level is they are milking every single 2x4 back in the old days if it had a bit of a twist they'd throw it on a skid they'd have it call lumber they'd ship out 100 pieces of wood for 50 bucks and lots of guys would use that kind of stuff for shoring and framing and making retaining walls and ditches and stuff but nowadays every piece of lumber is being restacked and re-piled and trying to sell it to the next consumer now what we're going to do right now in this video real quick as a bonus feature today is i'm going to show you how to straighten out a crooked stud okay because it's really quick and easy and if you know how to do this maybe you won't have to spend an hour picking through all the wood at the lumber yard and being that guy tossing them all on the floor so that they start the twisting process and screwing it up for the next person okay let's all be good to each other lumber generally speaking in that skid is all good lumber one out of 50 to 100 sticks is not usable but i'm telling you right now it's not worth your energy to pick through it looking for the love of your life kind of stick you know stop doing that and just learn how to straighten it on site let's get into that so when you put in a stud you attach the top and the bottom and if you have a bit of a rock like this one okay really it's as simple as this cut the stud drive a screw in here now you've got the ability to pull it pull it out if you need to or push it in if you need to if the if the stud is bowed this way you want to sink it in then all you do is you cut it and you take your screw [Music] push and you drive the screw [Music] okay and that area that you cut gets compressed and the stud straightens up if you got to go the other way you pull the stud forward until it's straight throw in a shim even if it has to be on the side that'll measure it and then you can drive it in that's how you fix this dead now listen guys if you're going to be buying framing and doing that sort of thing you might be building a shed you know it's a crazy time here but if you are you can click the link up here and you can follow the build as we built this shed 16 by 20. great deal it's gonna cost an extra 1500 bucks this year but it's worth it

Channel: Home RenoVision DIY

Views: 415,203

Keywords: cost of wood, homerenovision, renovision, jeff thorman, Homerenovisiondiy, pressure treated wood, global supply chain issues, shipping wood, retail prices, commodity market, lumber mill, wood supplier, why is the cost of wood so high, when will the cost of wood go down, should i buy wood, big box store, resin, framing wood, osb, two by four, wood supply chain, should i renovate, how do i save money on wood, home improvement, hrbc, home renovation buyers club

Id: fUSVl0GZckU

Length: 10min 37sec (637 seconds)

Published: Sat May 22 2021