Is Lumber Going BACK Up? Here's What We Know
As if construction projects haven't been plagued with enough problems this year, it seems that lumber prices are headed skyward yet again. According to the Bureau of Labor Statistics Producer Price Index (PPI) report, softwood lumber prices have increased 9.1% in October alone, representing the first monthly increase since May.
According to the National Association of Home Builders (NAHB), climbing lumber prices are responsible for an approximately $30,000 gain in the average price of a new home, further compounding the dramatic increase in home prices this year.
Something has to give -- the market is showing signs of being unwilling or unable to bear much more in the form of construction slow-downs and 152,000 single-family homes that have been permitted but not started (a 43.4% increase year over year).
Source Fool.com
