Home Depot Changes As Lumber Prices Keep Falling

I’ll hit on the first one and it’s out of The Motley Fool. It says lumber prices are crashing, what does that mean for Home Depot stock investors? Now, a couple of years ago, the channel actually exploded. I think 30,000 of you actually came onto the channel when lumber prices were exploding higher and I said, don’t worry, they’re about to crash. Why? Because of other factors that are going to affect the consumer, like food inflation and more, and it was going to hurt them. And so they were going to scale back on their spending of lumber.

And it actually did happen, but then it creeped up a little bit more. And now, lumber futures are collapsing and you’re actually seeing it at the store, okay? So Motley Fool weighed in and they even talked about how one of their analysts came out and said, look, the prices of lumber could influence Home Depot’s profits. And it’s not just lumber. Remember when people are buying lumber, they’re buying screws and nails and all kinds of things because they’re building something, right? Well, he says, hey, we’ve got 10 stock picks and guess what? Home Depot isn’t one of them.

And this exact same scenario played out in 2006, 2007, and it got worse in 2009, 2010 because people had stopped building. So now I’m going to dive into this next story. It’s out of Wall Street Journal, but real quick, I’m going to throw out a shout out to my sponsor, which is me. And I want to help people and educate people. And my goal is to help a million people nationwide get ready for this real estate crash. And so we’ve got a new course. It’s pre-filming discount. It’s investor mortgage pro and it’s 87% off.

Once the course is finished, there’s six lessons left. They’re at the editor. It will never be this price again. So check this out. All you got to do is check the link or right there, bam, just scan it. Try it. I promise it’s not going to be some weird photo. Anyway, the price of lumber. So people are freaking out, right? Well, it’s not just investors that are investing in Home Depot stock. It’s Wall Street Journal talking about home builders. And this is really cool. Out of the Wall Street Journal, it’s home building season, but no one is buying lumber.

Sawmill foreclosures haven’t stopped wood prices from falling to post pandemic lows. So before the pandemic, we had lumber at a certain price. We had so many certain amount of lumber mills online. And now those are closing because they’re losing on profits. Why would they, they might as well cease operations. Why would they sell timber and then sawn cut lumber at a low price when they’re used to charging this much? And some of those places actually opened up and ramped up production based on much higher lumber prices. So it’s just like the commercial mortgage back security fiasco, which is taking down the banks right now.

They’re actually going, hey, we started this business based off of a certain amount of profit. We’re no longer making that. We’ve got to cease operations. And even though sawmills are closing down right now, it doesn’t matter. The price of lumber is still falling. Traders on Wall Street are controlling this and they are seeing up ahead massive downturn in building, which is already happening because we’ve already reported on the lack of buyers to go and buy new homes. New home sales are being destroyed right now. I brought you information from one of my housing insiders.

One of the largest buyers of homes in the country and it is absolutely being decimated. So this is where you want to take advantage of this situation. And if you want to take advantage, you want to learn how to use other people’s money to make lots of money and you want to save thousands of dollars and not deal with crappy, you know, private lenders and I can’t even imagine how much people just spend on fees and points. Check out the course. The links down below. All right, here we go.

Out of Wall Street Journal, lumber prices have tumbled into building season, a sign that residential construction and home improvement markets are buckling under high borrowing costs. The price of two by fours, which skyrocketed during the pandemic, is a reliable lending indicator of the housing market. Lately, it is flashing caution. Let me know down below what the price of a two by four is in your local Home Depot. They vary all around the country or your local your local Lowe’s or any of your home improvement stores because it is a great indicator.

Are they falling in your area? Are they staying the same price? Since your lumber futures shed 3% Friday. This is last Friday to end at $452 per thousand board feet, which is down 27% since mid March. 27%. Oh my gosh, look here. It’s very professional. Look, can you even see that? You probably can’t see it. The chart is absolutely amazing. Wood has piled up in the market and pushed cash prices even lower. Yes, this is what we’ve been waiting for. And it’s not time to dive into the market and buy a house right now, unless you want to buy a house and your fixed payment is cheaper than rent.

Yes, if you’re going to live there for a long time, yes. Buy and large, go for it, right? But to take advantage of the rental market and this epic downturn, and I’m going to be diving in myself buying large commercial multifamily properties and actually some straight commercial properties. I’m very excited. The time is coming up, and so you’ve got to get ready for that. Trade publication and pricing service random links said it’s framing lumber composite price, which tracks on the spot sales fell this past week to 366 bucks. This is the lowest since May of 2020.

Okay, remember what happened to May of 2020. Everything went right. The economy closed down. Everybody was forced inside their houses. Everyone was freaking out what is going to happen. The stock market collapsed. It was gnarly, right? So we haven’t seen prices this low since it was that bad. So that’s really exciting. I mean, are you getting pumped about this economic crash? I mean, I am type one if you agree if you’re getting pumped. Southern yellow pine favored for fences and decks has also dropped to its lowest prices since the depths of the COVID market crash.

How many of you wanted to go and build a deck and a fence and you remember how pissed off you were type two down below or let us know, because you go to places, home do it centers and you were so pissed at how much it costs and you were like, this is insane. And even to the point where you couldn’t even go inside of a home do it center and actually find fence boards. It was absolutely insane. Now, you can find tons of them. It’s abundant. It says here random links.

Southern pine composite price declined to 335 dollars this past week. The spring rally never happened said Russ Taylor, a Vancouver wood market consultant. No one is making much money at these prices from labor to logs. Sawyer’s expenses have risen a lot since 2020. Many mills are losing money at today’s prices. Executives and traders say mills afraid of losing skilled workers are in standoffs with competition who see to see who will shut down or cut shifts first. There is blood in the streets for us as real estate investors. We sit back.

We take in this data. We watch and then we we jump. But that’s the whole part of the game. Many people don’t know when to jump. I know when to jump. That’s when the Fed actually starts lowering rates really meaningfully. That’s not coming this fall. Trust me, you’re going to see some fireworks this fall. They’re going to lower a little bit, but it’s going to get better. Point being is this lumber mills are in trouble, which is going to ultimately hurt companies like this and their stock price. I hope you’re ready for it.

If you want the course, it’s 87% off right now. Here, check it out. All you gotta do. There, just watch this. Scan it. I dare you. Price will never be the same again. Here, I’ll do it again. Just hit pause. Hit pause. There you go. All right. That being said, the economic ninja is out. [tr:trw].

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