Crow's Weekly Market Report (Crow's) today reported that the total cost of lumber and panels for construction of a 2,116 sq ft home has decreased by 35% since April of this year.
Based on the Crow's Construction Materials Cost Index (CMCI), the wholesale cost of lumber and panels for framing an average home has dropped from $7,511.80 on April 30, 2010 to $4,951.44 today. This dramatic drop is the result of a steep, supply-driven run-up in prices during the first quarter of the year.
Ken Tennefoss, Executive Editor of Crow's Weekly Market Report, commented, "Once buyers filled up inventory needs and production volumes became more in line with demand, prices began a continuous decline to the point we are at today." He continued, "The market dynamic can change in a very short period of time. That's why it is imperative that lumber and panel users and producers have the most accurate and up-to-date market intelligence available."
Crow's CMCI is published each Friday in Crow's Weekly Market Report.