Before lumber's precipitous rise, supply conditions tended to be relatively stable.
"We're out of the panic buying. We're out of the massive industry shortages. We're out of the extremes," said Mace McCain of Frost Investment Advisors.
Ed Egilinsky of Direxion pointed to the tightening labor market, the raging wildfires, and the emerging delta variant as possible factors that will push lumber prices higher.
Stinson Dean expects lumber to trade above $1000 for potentially the next three to five years. The historical average is around $400, he said.