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.
"The losses we are seeing over recent months could soon enough bring another major buying opportunity for the bulls to come back into dominance," Joshua Mahony of IG said.
Lumber prices will be volatile, but movements will vary by location in the US, according to Stuart Katz, CIO at Robert Stephens.
By end of August and into September, the price of lumber could settle in a range between $350-$450 per thousand board feet, an analyst told Insider.
Commercial construction may be fueling demand this time around as the US economy makes its way to a full recovery, an analyst said.
Stinson Dean expects lumber to trade above $1000 for potentially the next three to five years. The historical average is around $400, he said.