Sask. retailer encouraged by falling lumber prices

Wyatt Zacharias with Zak’s Building Group in Hague is knocking on wood that the latest lumber trend is here to stay.

On Tuesday, lumber futures were down 40 per cent compared to peak levels in May.

“I’m just hoping that we start seeing some consistency in pricing so we can find a new normal,” said Zacharias, the company’s chief retail officer.

“It’s just been an incredible challenge to keep up and explain to consumers how this is possible.”

Zacharias is referring to the volatility in prices since the start of the COVID-19 pandemic. The market has seen prices for some materials like oriented strand board (OSB) go up by more than 300 per cent.

For building centres, the price swings have made it difficult to quote customers on simple projects like sheds and decks.

“We’re all trying to figure out when to buy and what to sell at,” Zacharias said. “I’m giving a quote out today and it might not be good tomorrow.”

Zacharias is hopeful those days will soon be over.

Last week, he saw the price for two-by-four studs drop for the first time in over a year, and this week he’s seeing decreases across the board.

“I’m hoping we’ll be able to see anywhere from a five to 15 per cent decrease on the retail numbers in the upcoming week and maybe more significant in the coming months,” he said.

Zacharias has noticed demand slow a bit at the company’s Warman and Hague locations, something he attributes to home builders and DIYers alike no longer able to stomach high prices.

He believes we’re on the verge of a new normal for the industry, but he said we won’t see prices return to what they were before the pandemic.