– It has been a demanding time. Day-to-day manager at Byggmakker in Førde, Øystein Hope, looks over stacks of different types of timber. The warehouse is now full, but in recent years it has been difficult to get hold of enough goods. With a shortage of goods, the price has skyrocketed. – Lumber is a valuable commodity. If we had goods, we only had to pay what it cost. FULL STOCKS: A year ago, it was much more difficult to obtain wooden products for the chains. Now access is better, which in turn leads to lower prices. Photo: Håvard Heggen / news In 2021, timber prices increased sharply in a troubled market. The background is, among other things, the war in Ukraine, the power price and inflation. Earlier this year, house builders came forward and talked about how the total costs had increased by over NOK 500,000. From February 2021 to February 2022, the price for material for single-family houses made of wood has increased by 30.9 per cent, according to Statistics Norway. But during 2022, the trend has reversed. Several chains are now announcing significant price reductions from 1 October. Also throughout the summer this year, several chains reduced the price. Byggmakker says the price drop is greatest for timber. – The decrease has been greatest for pressure-impregnated decking and we expect further reductions in the future, says director Kjell Vidar Dokken. He believes the price of timber will fall further over the autumn and winter. Maxbo Proff writes on his website that prices for timber continue to fall “as a result of reduced demand in the market – both nationally and internationally”. From 1 October, the further reduction in price will be greatest for planer loads and structural timber, of up to 15 per cent, the chain informs. Optimera wrote to its customers that they lowered the price of timber further on 1 October, and that it is “nice that we can also present a significant price reduction with this price change”. Price rise for other goods The challenge is that the price of goods other than timber continues to rise. – Items for which we expect a price increase are related to products that require energy to produce, such as roof tiles, masonry products and panel products, says Byggmakker director Kjell Vidar Dokken. Maxbo writes that increasing energy and shipping costs and a lack of many raw materials mean that the market for building materials “will remain unstable”. The chain announces price increases on goods such as cement and mortar, cardboard products, insulation and building foil. In several of the product groups, the increase is up to 10 per cent, but the variations are large. THE RECORD OF PRICE: Øystein Hope in Byggmakker in Førde says the customers are particularly keen on price. Some have postponed projects in anticipation of lower prices. Photo: Håvard Heggen / news Decline in the housing market The Norwegian Association of Housing Manufacturers is unsure whether the price drop is enough to speed up the housing market. The latest figures presented last week were disappointing, seen from the industry’s point of view. FEWER NEW RESIDENCES: In the past year, the sale of new residences has fallen sharply. Photo: Audun Braastad / NTB scanpix So far this year, around 13,000 houses have been sold. It is 20 per cent less than the same period in 2021. What can give some optimism is the construction cost index for residential buildings, which is prepared by Statistics Norway. It shows that costs are still increasing, but only by 0.7 per cent from July to August this year. It is far less than at the turn of the year. Managing director, Lars Jacob Hiim, says that the decisive factor in the future will be how much timber prices fall. – The question is whether it continues to go down. Then we can probably get a change in the residential hall. If it stabilizes at a fairly high level, it will take some time before we see any change in the market. He says there are also other factors that come into play in an unfortunate direction. Both rising interest rates and long processing times for new construction projects. – When too few houses are built in relation to the need, it can quickly lead to price pressure in the market again, says Hiim. WAITING: CEO of the Boligproduktorenes Association, Lars Jacob Hiim, is happy about lower prices for lumber, but is unsure whether it is enough to gain momentum in the housing market. Photo: Emily Louisa Millan Eide / news
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Chains warn of falling prices for timber – news Vestland
