In the largest decline since May 2011, softwood lumber prices decreased by 10.3 percent in October 2018, per the latest index data by the Bureau of Labor Statistics.
The producer price index for softwood lumber dropped 21.2 percent since June's all-time and cycle high, though the index is 4.7 percent lower than the last cycle high in 2004, writes David Logan, director of tax and trade policy analysis at the National Association of Home Builders. OSB prices were down 16.6 percent in October, after rising 38.1 percent in the first seven months of 2018, and now sits 15.2 percent higher than at the start of the year.
Residential construction goods input prices increased 0.4 percent in October and have now risen 7.5 percent over the last twelve months. The index decreased only twice during that period, by 0.1 percent and 0.5 percent in December 2017 and August 2018, respectively. Year-to-date residential construction goods input price increases in 2018 (+5.6) continue to outpace the increase during the same period in 2017 (+2.9 percent).
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