3 Homebuilders to Buy as Lumber Prices Fall

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However, according to industry trade publication Random Lengths, the cash price per thousand board feet of lumber fell 27% last week from its $1,515 all-time high, which it hit on May 28.This can be attributed primarily to increasing production at sawmills as major economies continue to reopen and mill workers return to their jobs. Consequently, several homebuilding projects that were put on hold due to high lumber prices are expected to resume in the near term.

So, based on these factors, we think it could now be wise to bet on the shares of established homebuilding companies Skanska AB (SKBSY), Tri Pointe Homes, Inc. (TPH), and Hovnanian Enterprises, Inc. (NYSE:HOV). They are expected to generate significant returns in the coming months.

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