Monday, November 06, 2017

Update: Framing Lumber Prices Up Sharply Year-over-year

by Bill McBride on 11/06/2017 10:55:00 AM

Here is another update on framing lumber prices. Early in 2013 lumber prices came close to the housing bubble highs - and prices are once again near the bubble highs.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through October 2017 (via NAHB), and 2) CME framing futures.

Prices in 2017 are up solidly year-over-year and might exceed the housing bubble highs in the Spring of 2018.

Lumcber PricesClick on graph for larger image in graph gallery.

Right now Random Lengths prices are up 25% from a year ago, and CME futures are up about 45% year-over-year.

There is a seasonal pattern for lumber prices. Prices frequently peak around May, and bottom around October or November - although there is quite a bit of seasonal variability.

It looks like we will see record prices in 2018.