The cost of residential building materials decreased 1.1% in June after four months of increases, according to the M Report.
The decrease in the PPI, released by the National Association of Home Builders (NAHB), is only the fifth time in the past two years where home prices fell.
Prices for building materials have decreased 1.6% year-over-year, and June 2019’s decline is stark contrast from June 2017 to June 2018 when prices grew 8.8%.
Softwood lumber prices decreased by 1.7% in June, which is the third-consecutive month of declines. Prices for softwood lumber remain at their lowest levels since February 2017.
Also seeing declines in June were prices for lumber and plywood, which fell 2.3%. Prices paid for softwood lumber and lumber, and plywood have decreased 23.1% and 17.6%, respectively, year-over-year.
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