Calculated Risk's Bill McBride reports via an update that framing lumber prices remain up year-over-year, after a steady decrease since early 2013 when prices came close to housing bubble highs.

Increases in 2013 were attributed to a surge in demand with more housing starts, and supply constraints as framing lumber suppliers worked to bring more capacity online. Prices didn't increase much in early 2014, as supply grew with a smaller "surge" in demand.

In 2015, even with the pickup in U.S. housing starts, prices were down year-over-year. Note: Multifamily starts do not use as much lumber as single family starts, and there was a surge in multi-family starts. This decline in 2015 was also probably related to weakness in China. Prices are now up year-over-year.

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