Monday, March 05, 2018

Update: Framing Lumber Prices Up Sharply Year-over-year, At Record Prices

by Bill McBride on 3/05/2018 12:58:00 PM

Here is another monthly update on framing lumber prices. Early in 2013 lumber prices came close to the housing bubble highs - and now prices are above the bubble highs.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through February 2018 (via NAHB), and 2) CME framing futures.

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.

Rising costs - both material and labor - will be headwinds for the building industry this year.