High lumber prices are back, even as the industry steps into what is normally a seasonal lull.

Prices are climbing amid tight supplies and a pickup in homebuilding. Western Canada is seeing reduced output and the U.S. south is grappling with labor shortages. The U.S. is also expected to double duties on a common Canadian wood next month, adding to costs.

The rise signals that homebuyers will face elevated prices for longer. On Tuesday, lumber futures were trading around US$735.70 per 1,000 board feet in Chicago, more than double the pre-pandemic five-year average around US$356.

Wood prices have been volatile, whipsawing since the pandemic began. They touched record highs amid a COVID-19 inspired home-building boom, then collapsed because sawmills ramped up production and the high prices stifled retail demand. Now, the market is shooting up again…read more.