A rebound in the US housing market, rising housing starts, and increased foreign demand brought framing lumber prices to an eight-year high last week of $423 per 1,000 board feet. That’s the highest price for the lumber used in the construction industry for framing new homes since the first week of March in 2005 (see blue line in chart). Framing lumber prices last week were 42.4% higher than a year ago, following year-over-year gains of more than 40% in each of the three previous weeks.
Prices for lumber futures contracts sold on the Chicago Mercantile Exchange (CME) rose by almost $5 per 1,000 board feet last week to $395, from $380.30 the previous week. Except for a slightly higher price of $390.50 in mid-February, lumber futures prices are at their highest level since the last week of March in 2005 (see red line in chart).
MP: The rebound in lumber prices last week to an eight-year high is more evidence that a robust recovery is underway in the US housing and construction markets.