Tuesday, August 04, 2020

Update: Framing Lumber Prices Up 81% Year-over-year

by Calculated Risk on 8/04/2020 10:59:00 AM

Here is another monthly update on framing lumber prices.   Lumber prices are up 81% year-over-year.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through July 31, 2020 (via NAHB), and 2) CME framing futures.

Lumcber PricesClick on graph for larger image in graph gallery.

Right now Random Lengths prices are up 81% from a year ago, and CME futures are up 60% year-over-year.

There is a seasonal pattern for lumber prices, and usually prices will increase in the Spring, and peak around May, and then bottom around October or November - although there is quite a bit of seasonal variability.

Prices fell sharply due to COVID-19, however prices have roared back (Note: Construction was considered an essential activity in many areas, so construction didn't decline as much as some other sectors).

This is the highest price for Random Lengths lumber, and futures are just below the previous record set in 2018.