Real estate and many commodities have fallen in value in recent months
For much of the last few years, watching the price of lumber has been painful for anyone working on their home.
Lately though, the cost has come sliding down alongside many other commodities — yet another sign that rampant inflation could be coming to an end or at the very least, offer some reprieve for those struggling with the soaring cost of living. |
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Lumber and framing account for about 10 to 15 per cent of the total cost to build a new home, said Mace Mortimer, co-owner of Alloy Homes, a Calgary custom homebuilder.
"Lumber prices at their worst were about 300 per cent higher than normal. Now, that was back in March and April of this year. They've softened a little bit and have come back down," he said. 'It's peaked' Many other construction products are still higher than normal and the shortage of skilled labour is noticeable. Still, Mortimer thinks the worst of inflation is behind the industry. "I think it's peaked," he said. "And I think it should hold." In the United States, new figures released Wednesday show inflation could be peaking as the rate fell from 9.1 per cent in June to 8.5 per cent last month. |
Besides lumber, many other commodities are on the decline such as oil, which is one of the biggest drivers of inflation. A barrel of crude is down about 20 per cent since June.
Copper has fallen about 25 per cent since March, while many crops are also tumbling in value. Canola and corn have both lost 25 per cent of their value since May, while wheat has tumbled 40 per cent. "Two or three months ago, we had crop prices either at all-time highs or very close to all-time highs, depending on the crop. Almost across the board we've now seen a pretty substantial pullback [in prices]," said Jonathon Driedger, a Manitoba-based analyst with LeftField Commodity Research. --------ADVERTISEMENT--------
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