Price drop increased demand for new construction

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Real Estate

Kyle Little, chief operating officer at New York-based wholesale distributor Sherwood Lumber, told CNBC on Thursday that the recent slide in lumber prices has rekindled demand after a massive runup earlier this year challenged the affordability of building projects.

“Over the last three weeks we’ve seen renewed interest,” the industry veteran and former lumber trader said on “The Exchange.” “Our renewed interest is now turning into actual orders and people placing business here for the second half of this year, most notably in the commercial segment and into the multifamily unit segment.”

Little’s comments Thursday came as lumber hit a low of $480.40 per thousand board feet, its lowest level since July 8, 2020, when lumber traded as low as $465 per thousand board feet. Lumber prices are on track for their 13th consecutive weekly loss after falling by more than 9%.

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