December 23, 2020, by The Canadian Press
RBC analyst Paul Quinn said in a report that the prices for lumber and wood panels are up due to strong housing markets and limited capacity to increase North American production.
Kevin Lee, CEO of the Canadian Home Builders’ Association, says the price volatility and shortage of supply of some wood products means builders are having difficulty taking advantage of the current strong market for new houses that is expected to continue in 2021.
He says escalating lumber and panel prices this year have added as much as $30,000 to the construction cost of a typical 2,500-square-foot (232-square-metre) house in Canada.
“With demand likely to get stronger as dealers get ready for what should be a very strong spring building season, we expect that prices will remain at a high level during the first half of the year,” said Quinn in the report.
Lumber boom great news for industry, but expect higher construction prices in 2021
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