It's good news for the lumber and housing industries. Everything related to the housing sector performed well in 2012 from materials to the home improvement and remodeling big box retailers. But are lumber prices getting ahead of themselves?
The all-time high for lumber prices established in 1993 was just shy of $500 (per mbf) on a spike, with additional spikes of $440 in 1997, and $420 in 2005. So we are now basically sitting at $400 and in spike territory.
The US economy is looking for all the good news it can get, and housing has definitely improved but lumber prices are pricing towards the best ever levels in the housing market from a comparison standpoint.