Eye On Housing
Most analyses of lumber price trends and levels fail to account for inflation because the price data for softwood lumber used in framing applications is generally quoted using the Random Lengths Framing Lumber Composite Price or lumber futures prices–neither of which is inflation-adjusted. Adjusting for inflation shows that, although the historical price differences are smaller in real terms than nominal,… Read More ›
The prices of goods used in residential construction ex-energy climbed 1.5% in December (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The index was driven higher by large price increases for wood products. Building materials prices increased 15.9% in 2021 and have risen 18.6% since December 2020. Since declining 1.8% between July… Read More ›
Led by higher prices for shelter and used vehicles, consumer prices soared by 7.0% in December from a year ago. It was the largest year-over-year gain since June 1982. However, energy prices fell in December, ending a long series of increases. Supply-chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to… Read More ›
Consumer confidence continued to improve in December as inflation concerns eased after hitting a 13-year high last month. Spending intentions for homes, cars, and major appliances all increased. However, consumer spending will continue to face headwinds from higher prices, Omicron surge and reduced fiscal stimulus in 2022. The Consumer Confidence Index, reported by the Conference Board, rose 3.9 points from… Read More ›
The prices of goods used in residential construction ex-energy climbed 1.8% in November (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The monthly increase was driven by price increases in nearly every product category. Building materials prices have increased 14.1% year-to-date, more than tripling the November YTD increase of… Read More ›
Consumer confidence fell for a third consecutive month in September, as concerns about the Delta variant and higher prices continued to dampen optimism. Spending intentions for homes, cars, and major appliances all retreated. However, consumer confidence was still at a high level and the consumer price index has shown signs of easing inflation. The Consumer Confidence Index, reported by the… Read More ›
According to the most recent release of the Bureau of Labor Statistics Producer Price Index (PPI), the prices of goods used as inputs to residential construction including and excluding energy have risen 19.0% and 12.0%, respectively, year-to-date (YTD). In contrast, the index for final demand goods has climbed 7.2% and that for final demand goods less food and energy is… Read More ›
Prices paid for goods used in residential construction ex-energy rose 0.2% in July after climbing 3.0% in June (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Building materials (i.e., inputs to residential construction less food and energy) prices have declined just twice since December 2019 and have increased 19.4% over the… Read More ›
Lumber futures prices have decreased by 52 percent (on a front-month basis) over the past seven weeks as mill prices have fallen 48 percent over the same period.[1] In contrast, prices paid by builders since late May have declined by a fraction of that impact. The disconnect—which has always existed—is inherent to the lumber supply chain and choices that must… Read More ›
Consumer confidence continued its upward trend and approached to pre-pandemic level in May, as consumers became more upbeat about the current and future economic conditions and job market. Though short-term inflation expectations increased, it had little impact on consumer confidence or spending intentions. The share of consumers planning to buy homes, cars, and major appliances all increased, suggesting consumers will… Read More ›