Softwood lumber prices fell 10.3% in the month of October, according to the latest Producer Price Index release from the Bureau of Labor Statistics. The National Association of Home Builders (NAHB) noted that this price decrease is the largest drop for softwood lumber since May of 2011.
The index for softwood lumber has fallen 21.2% since setting an all-time high in June. Despite this decrease, however, the index currently sits just 4.7% lower than the prior-cycle high set in 2004, according to the NAHB.
OSB has followed a similar trend to softwood lumber of the past three months, with the final demand index for the product falling after a gradual increase during the first seven months of 2018. OSB prices have fallen 16.6% since climbing 38.1% from January to July and the price index is now around 15% higher than it was at the start of both 2017 and 2018.
Prices for inputs to residential construction increase 0.4 percentage points in October and have risen cumulatively 7.5% in the past twelve months. Year-to-date residential construction goods input price increase in 2018 outpace the increase during the same period in 2017.
