Everyone is eagerly awaiting the arrival of spring. We’re looking forward to more building projects getting started and hoping for new growth in the building industry.
The cost of lumber materials for a typical two-story house is holding fairly steady. According to Random Lengths, the Framing Lumber Composite Price has been slipping, and is about 12 percent lower than one year ago, although these lower prices could be affected by a spring surge in business due to low inventories in the field.
Sales of 7/16” OSB are holding steady, in contrast to last spring where we saw a dramatic increase in prices. The Random Lengths Panel Market Report also said earlier this month, “prices drifted sideways or adjusted modestly in either direction.” The report reinforces that dealers and secondaries are hopeful that spring weather will increase sales – although the weather has been anything but “spring-like” here in Wisconsin.
In housing news, the National Association of Home Builders reports builder confidence has slipped a small amount, according to the NAHB/Wells Fargo Housing Market Index. The NAHB’s chief economist noted restrictive lending requirements, concerns about home values and the slow pace of economic recovery are leading to a slow start for the spring home buying season. There may be some more activity among first-time buyers who don’t have to worry about selling their current home, although this will usually involve lower price ranges.
As the spring thaw continues, we hope you’ll visit your local Wisconsin Building Supply. We have a number of store events coming up. Visit our Facebook page or talk to your salesperson to stay up-to-date on the building industry.
