As the price of lumber stabilizes, more volatility lies ahead, and three factors will keep the red-hot commodity in high demand.
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.
Lumber prices are now down roughly 40% from their May 7 peak, but are still up over 175% over the past year.
Lumber futures fell to $1,327 per thousand board feet on Monday in the sixth day of reprieve for home builders and renovators.
Lumber futures are now trading more than $200 below recent highs of over $1670 per thousand board feet.