The wholesale price for lumber and panels used in a typical new home has dropped 34% between April 30 and June 25, according to the latest Crow's Construction Materials Cost Index (CMCI), the research group RISI reported today. The index, based on construction of a 2,116-square-foot home, stood at $4,951.44 on June 25, down sharply from $7,511.80 on April 30.

The CMCI's sharp drop follows a steep, supply-driven run-up in prices during the first quarter. "Once buyers filled up inventory needs and production volumes became more in line with demand, prices began a continuous decline to the point we are at today," said Ken Tennefoss, Executive Editor of Crow's Weekly Market Report.