While the increase of lumber prices since mid-April have added thousands of dollars to the cost of new residential construction, rising to an all-time high in September at an estimated $950 per thousand board feet, prices began to drop last month. By mid-November, prices per thousand board feet were down to $550 but since then lumber prices have increased and continue rising at a high historical level.

 
The National Association of Home Builders (NAHB) states the cause may be lumber producers reducing production as the slower winter building season starts, although new residential construction has been strong with a steady climb.

However, determined in an administrative review by the U.S. Commerce Department on December 1 and expected to go into effect in mid-December, lumber tariffs on Canadian softwood lumber will be reduced by more than half - from 20% to about 9%.

NAHB Chairman Chuck Fowke stated the tariff reductions were a positive development and a step in the right direction but that more needs to be done.

"The United States needs to work with Canadian officials to end the tariffs and achieve a long-term, stable solution in lumber trade that provides for a consistent and fairly priced lumber supply," Fowke said.