Visitor Counter

Visit Today : 23
Visit Yesterday : 54
This Month : 1287
This Year : 23130
Total Visit : 126365
Hits Today : 39
Total Hits : 418881
Who's Online : 0
Your IP Address:
Server Time: 17-12-16
plugins by Bali Web Design

Lumber Prices Hit 7 Month High

From American Enterprise Institute Blog by Dr Mark Perry

click to enlarge

Carpe Diem
As the housing sector rebounds, lumber prices reached a 7 year high today, while homebuilder stocks hit 5 year high
Mark J. Perry | January 18, 2013, 8:00 pm

The chart above shows weekly framing lumber prices (red line), which closed today at $400 per 1,000 board feet, the highest level since September 2005, more than seven years ago.  Over the last year, lumber prices have increased by 43.4%.
Meanwhile, the S&P Homebuilders ETF (blue line) closed today at 28.21, which is the highest closing price since July 2007, more than five years ago.  Over the last year, the S&P Homebuilders ETF has increased by 52.7%.
Bottom Line: The chart above shows the close historical relationship between framing lumber prices and the S&P Homebuilders ETF.  Now that the housing and construction sectors are rebounding, we’re also seeing that housing boom reflected in rising lumber prices.
Mark J. Perry
Dr. Mark J. Perry is a full professor of economics at the Flint campus of The University of Michigan, where he has taught undergraduate and graduate courses in economics and finance since 1996. Starting in the fall of 2009, Perry has also held a joint appointment as a scholar at The American Enterprise Institute.

Leave a Reply

Your email address will not be published. Required fields are marked *