This story was originally published in ProSales.
Recently released data indicates that producer prices for softwood lumber have retreated sharply from their mid-year highs, according to a report from Zillow Research. Lumber prices are now at their lowest levels since the first month of 2017 – the eve of the U.S.-Canada trade war that sparked the recent surge in lumber prices.
After reaching rising steadily in 2017 and early 2018, lumber prices have fallen dramatically in the latter portion of the year. Data from the Bureau of Labor Statistics indicates after reaching a Producer Price Index (PPI) reading of 273.6 in June, the PPI has fallen 65 points to 208.6 in less than six months.
The lower costs will be welcome news for homebuilders across the nation who have been faced with high material costs over the past years. As a result of high material costs, trade war pressures, and labor costs, new home sales have registered their largest string of declines since 2010.
This story was originally published in ProSales.