Monday, August 06, 2018

Update: Framing Lumber Prices Fall from Record Highs, Up 20% Year-over-year

by Bill McBride on 8/06/2018 10:13:00 AM

Here is another monthly update on framing lumber prices.   Lumber prices declined in July from the recent record highs, but are still up sharply year-over-year.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through July 27, 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 15% from a year ago, and CME futures are up about 23% 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 - are headwinds for the building industry this year.