Softwood Lumber Prices Increase 12.5% in December to Cap Volatile 2020

The NAHB said softwood lumber prices in 2020 were roughly four times as volatile as during the recessionary years of 2008 and 2009.

Prices paid for softwood lumber increased 12.5% during December 2020, following a 23.9% decline of the prior two months, according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. According to the National Association of Home Builders' (NAHB) Eye on Housing, Random Lengths data suggests that the PPI for softwood lumber will increase more in January as rising prices in late December and the first half of January are accounted for. The NAHB said the full year of 2020 was the most volatile for softwood lumber prices since 2001 and prices in 2020 were roughly four times as volatile as they were during the recessionary years of 2008 and 2009.