LITTLE ROCK, Ark – The price of lumber is going down for the first time in months, but builders aren’t opening their wallets just yet.
Experts said the price of lumber could be down 40 percent in July after hitting its all-time high in May.
Mark Sexton is in the process of building a home for his family. He also owns a contracting company in town called Hydrotech.
“They’re probably half of what they were in the beginning of May,” Mark Sexton said.
Sexton said the lot where he plans to build his home has sat empty for two years and part of the reason for the delay was the increase in lumber prices.
“It’s been kind of tough,” Sexton said. “When you look at your construction package and it goes $25,000 to $30,000 over what the original estimate was, that will slow you down quickly.”
The numbers on price tags for lumber are going down but Sexton says he and his customers are still holding off on building.
“I think people are kind of holding out to see if they will level out and then you’ll see a buying surge,” Sexton said.
Sexton said he thinks prices will continue to drop in the coming months, in some places by hundreds of dollars.
“When they level off, we’ll push forward,” Sexton said.
Sexton said that prices originally went up during the pandemic when Americans were getting extra stimulus money and spending it on outdoor or home projects.