Monday, July 02, 2018

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

by Bill McBride on 7/02/2018 01:21:00 PM

Here is another monthly update on framing lumber prices.   Current prices are well above the bubble highs.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through June 15, 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 44% from a year ago, and CME futures are up about 52% 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.

Tariffs on lumber, steel and aluminum are impacting housing costs.   And rising costs - both material and labor - will be headwinds for the building industry this year.