Comments on: Soft Demand For New Housing Crashed Lumber Prices Over 40% In Just 38 Days: BMO https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/ Canada’s Fastest Growing Real Estate News Source Wed, 16 Jun 2021 03:03:30 +0000 hourly 1 By: Rene Albert https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72694 Wed, 16 Jun 2021 00:14:03 +0000 https://betterdwelling.com/?p=17034#comment-72694 A 40% drop in the price of lumber is certainly a big one…but current prices are still almost 4 times what they were a year ago. As a commodity, lumber will likely remain expensive for the long term because of a dire need for more homes across North America. In Canada logging is necessarily reduced due to over cutting in the past, plus poor forest management by our governments who own and regulate some 90% of Canadian forests by the way…. And if that ticks you off, call your MPP and MP!

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By: GTA Landlord https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72676 Tue, 15 Jun 2021 18:03:16 +0000 https://betterdwelling.com/?p=17034#comment-72676 In reply to Kate Wright.

They’re definitely right, but not how people think they are. They doubled up on inflation to make sure capital expands sufficiently to absorb any excess savings through a higher temporary cost of living. m

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By: Charlie Lee https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72674 Tue, 15 Jun 2021 18:00:21 +0000 https://betterdwelling.com/?p=17034#comment-72674 Any word on developers offering to give some of the money back they’re asking for? Didn’t think so.

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By: David Leham https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72662 Tue, 15 Jun 2021 17:36:39 +0000 https://betterdwelling.com/?p=17034#comment-72662 A lot of people in the comments appear to have heads made of wood. Lumber prices are extremely volatile, as you can see in the frickin’ chart. I don’t even know what’s to argue about.

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By: MC https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72660 Tue, 15 Jun 2021 17:32:01 +0000 https://betterdwelling.com/?p=17034#comment-72660 In reply to Bkl.

Slow bus over here must have a hard time reading, since he inferred things they didn’t say.

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By: Bkl https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72654 Tue, 15 Jun 2021 16:55:31 +0000 https://betterdwelling.com/?p=17034#comment-72654 In reply to Marc.

Its takes exception amount of ignorance to not understand what he said. You made no logical argument or any reasoning. I assume you are having a hissy fit because he made you feel bad by exposing your wishful thinking on asset prices? LOL

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By: D https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72652 Tue, 15 Jun 2021 15:06:27 +0000 https://betterdwelling.com/?p=17034#comment-72652 In reply to Marc.

The past 1 year, lumber firms were hoarding there supply, loads of proof including pictures on the internet. Regardless of what’s happening today, price of lumber has inflated the past couple of years via expansionary (inflation) policy.

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By: Jimmy https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72647 Tue, 15 Jun 2021 14:12:04 +0000 https://betterdwelling.com/?p=17034#comment-72647 In reply to Marc.

Fair enough.

I my mind governments can create money by buying debt and assets. But, if it does not result in other actors borrowing and creating more money then the government buying debt doesn’t work.

The government is essentially the only actor left at the party. (Negative rates could mean actors willing to borrow is not keeping up with gov’t purchases) Other actors are taking gov’t support and paying off debt decreasing money available in the system? Or inflated stock prices (AMC)….. And negative rates become a issue for lenders impeding the ability to lend money…..

No more lambs left to slaughter?

Does this make sense? (You do not get this information from a text book)

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By: Marc https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72646 Tue, 15 Jun 2021 12:19:44 +0000 https://betterdwelling.com/?p=17034#comment-72646 In reply to Honli.

Has to be an exceptional amount of ignorance to make the argument prices only rise due to money printing, while reading an article about a commodity falling 40% in one month.

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By: Marc https://betterdwelling.com/soft-demand-for-new-housing-crashed-lumber-prices-over-40-in-just-38-days-bmo/#comment-72645 Tue, 15 Jun 2021 12:17:42 +0000 https://betterdwelling.com/?p=17034#comment-72645 In reply to Jimmy.

I think you’re confused about how the money supply is created. Money is created when people take out loans. High nflation is caused by excess money supply growth, which occurs when there is a mismatch between low interest rates and the strength of the borrower.

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