Spring is here and the
rain has arrived with it. After a wet and muddy start to the month, business
continues to strengthen. We appreciate all of our customers and want to keep
them informed of what is happening in our industry. As you may be aware, many manufacturers
have been raising prices within the building material category. This is
different from the price increases we have seen in the commodity markets. As
such, we will share any of the price increases announced by our major
suppliers. Since the first of the year we have seen price increases from
CertainTeed Roofing and Siding, GAF Roofing, Atlas Roofing, Guardian Insulation,
and most recently, James Hardie Siding. Please discuss any impact this may have
on your projects with your sales person. We will add any new announcements to
our blog section on our website as they occur. As always, thank you for your
business.
Increased Buying Builds Confidence
Housing starts and
permits in the Midwest have shown growth through the month of May according to
Random Lengths reports. This upward trend is confirmed with other incoming
reports of market improvement. According the National Association of Home Builders (NAHB) Housing Market Index (HMI) scale, newly built single-family
homes gained five points in May from a downwardly revised reading in the
previous month. Barry Rutenberg, chairman of the NAHB, says that builders in
many markets are reporting sales traffic has picked up after a lull in April. “It
seems we have resumed the gradual upward trend in the confidence that started
at the beginning of this year, as stabilizing prices and excellent
affordability encourage more people to pursue a new-home purchase.” While
Rutenberg admits there is still much room for growth, the fact that the HMI has
returned to an upward trend is a good sign of what’s to come. Read more.
Random Lengths Lumber
Market reports show that Southern Pine Composite is still making steady progress,
posting its fifth straight weekly increase. Though results are mixed (increases
are less in the Eastern portions of the U.S.), central regions remain strong. A
major contributor to this increase is a major mill fire that has constrained western
supply and, as a result, has boosted both pricing and demand. Westside mills
are increasing quotes to reflect the largest gain since November 2008 and its
highest price level since May 2007.
Cost of Housing Rise Continues
Cost of housing for a
typical two-story home has shown the largest increase of any month this year.
The market experienced a dip in April, down 1.05% from a very promising month
of March, which had increased 3.27% from the month prior. May has bounced back with
a 6.21% increase compared to April. This steady growth is also confirmed when
comparing last year’s prices. In the first quarter of 2012 prices have hovered
approximately around a +/-1% increase each month, but have experienced a
significant 13.09% increase from May 2011 to May 2012. These increases can most
likely be attributed to augmented prices within the stud market, along with
normal seasonal changes.
