(WJW) – The lumber bubble has started to pop.
After skyrocketing to record highs in May, futures for July delivery dropped more than 40%.
The price increased as restaurants created new outdoor spaces and homeowners completed new projects, leading to a shortage and a price hike.
The National Association of Home Builders said the increase was so high, it added about $36,000 to the price of a new home.
Lumber futures traded back below $1,000 per thousand board feet this week for the first time since late March.
Of course, now that prices are falling, people are selling.
Industry leaders say there are still supply chain issues in other areas.