Here is another monthly update on framing lumber prices. Early in 2013 lumber prices came close to the housing bubble highs – and now prices are above the bubble highs.
This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through February 2018 (via NAHB), and 2) CME framing futures.
Right now Random Lengths prices are up 25% from a year ago, and CME futures are up about 45% 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.
Rising costs – both material and labor – will be headwinds for the building industry this year.