US Housing Demand Driving Record-Level Lumber Prices
Posted on February 3, 2021
- Benchmark lumber prices increased by over 8% over week (as of January 29, 2021) to around US$925/Mbf FOB BC mill (~euro 500/m3 – net).
- Four of the larger U.S. homebuilders reported a 35% growth in sales on quarterly basis
- Record-low mortgage rates and the desire to work from home is driving the housing market
- Scarcity of rural and suburban homes for sale is driving the overall housing supply shortage
- The total number of homes for sale fell a record 34% year-over-year in the four weeks ending January 17, and new listings were down 10%, the biggest drop in seven months.
- HMI index gauging current sales conditions dropped two points to 90,
- Component measuring sales expectations in the next six months fell two points to 83
- Gauge charting traffic of prospective buyers decreased five points to 68.
- However, all these trends are all above normal when compared to previous year
