It is inevitable that as the housing market improves and demand increases, material prices will be on the rise.  But wait….the market has only shown a very small level of improvement however materials are skyrocketing! Anyone following the lumber or panel markets has seen some incredible numbers as of late.   For example; The Framing Lumber Composite price, as reported by Random Lengths, one year ago was at $210, on January 8 of this year $241 and this week a whopping $367!  Similar numbers are being reported for Structural Panel Composite prices; one year ago $244, on January 8 of this year $272 and this week $474!

Yes, these numbers are staggering, but why? Neither the housing market nor the economy as a whole is showing any real signs of rapid expansion. So where’s the demand? Turns out the industry is creating its own demand by closing down plants and slowing production thus reducing the availability of materials. It is frustrating for all of us, especially given the fact that even the smallest increase in price knocks many people out of the market.

Here at Signature Building Systems we have been able to work through much of these price spikes by prudent planning and buying.  Unfortunately, if this trend continues through the summer we will need to initiate an adjustment. I would like to think this trend will reverse itself, but at this time, it looks doubtful.   We will continue to monitor and report.

Information on composite pricing can be found at: www.randomlengths.com