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| Wholesale Lumber Prices 1985 to Present |
Lumber Prices Collapse As Homebuilder Sentiment Falters
Lumber peaked at $1,336 per thousand board feet in late February but has settled at around $380 this week, representing a dramatic 72% decline in prices, primarily due to elevated mortgage rates, slowing housing activity, waning builder confidence, and overall mounting macroeconomic headwinds.
The plunge in lumber prices is no surprise as builder confidence for newly-built single-family homes posted its 12th consecutive month of declines in December, according to the National Association of Home Builders. Confidence is at its lowest reading since mid-2012.
The drop in lumber prices is pretty dramatic.
I got a bill yesterday for home heating oil delivered Dec 7th. It was 52¢ a gallon CHEAPER than on October 1st.
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