Behind-the-scenes discussions in recent weeks by NAHB have helped bring the impact of the price spike on home builders to the attention of major producers such as LP, and the association's economists are now hopeful that prices have peaked.
“There was a bubble in the prices of these products that was not sustainable,” said NAHB economist Michael Carliner. “Special short-term factors behind this summer’s price explosion — such as a shift in inventories and panic buying, as well as the hurricane — have started to recede, and that is why we are fairly confident of a gradual return to more sustainable price levels.”
Carliner added that builders should watch the direction of prices carefully and be mindful of falling prices when they are agreeing upon prices with their local dealers. (OSB and plywood prices will continue to be reported regularly in Nation’s Building News Online.)
On another front where prices have been less volatile, home builders received more good news last week: the composite price of framing lumber fell to $337 per 1,000 board feet on Oct. 3, down from $357 during the prior week and the most recent high of $386 on Sept. 12.
Before climbing in late August and September, framing lumber prices this year had been averaging well below $300 per 1,000 board feet.
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