UPDATED: April 2023

After prices declined this past winter, as they typically do, we are seeing a VERY slow return to price increases as the building season gets underway in the south. The northern section of the country is just seeing hints of spring, so prices won’t rise dramatically until builders in those areas can really get going. Plus, with interest rates still high and at least two prominent bank failures, there is significant uncertainty in economic circles.

On the bright side, inflation appears to have slowed to about 5%, down from a June 2022 peak of just over 9%. While much better than it has been, 5% inflation still impacts consumers’ ability to purchase. Furthermore, the Fed raised interest rates again in March making loans even more expensive, but that may be at a halt.

The overall numbers for framing lumber and structural panels show about a 1% decline overall from March. However, when we examine the specifics of different lumber, we see a different story. Western species lumber is down 7-10%, yet southern pine is up 4-18%. This is because most framing material used across the country is western species, and most of the country has been hit hard with extremely stormy weather we mentioned at the top of the article. That weather halts construction, leaving a glut of western species framing lumber.

However, framing in our area, which relies a great deal on southern pine wide dimension, and the coastal area on all dimensions, continues to be strong. Additionally, companies across the country use southern pine for treated lumber, which keeps demand high. Accordingly, 2x12 southern pine has risen 18% since March and continues to rise steadily. West Coast panels have pulled the overall number down, but in our region OSB has risen over 4% and plywood sheathing has held steady.

At some point very soon, spring will break out across the U.S. and builders in the rest of the country will start buying again. Even though housing starts in the rest of the country are expected to be lower than last year, we’re already seeing an increase of about 3.3% in the prices of exterior doors and windows, which have a longer lead time than many other supplies. Prices for interior doors, trim, and hardward are up nearly 3% from March to April. Roofing materials remain steady.

Framing lumber costs are now 67% lower than when they were at their highest during the end of May 2021, and panel costs are now 47% lower than their highest in July 2021. Here’s what we see now with some of the lumber and other building products in high demand.

• Framing Lumber:
  2x4, 2x6, 2x8, 2x10, 2x12, southern pine lumber, and western species lumber prices are increasing slowly due to increased demand and mill slowdowns as they “right size” production.
• Treated Lumber:
  There are no longer shortages of treated lumber because the chemicals used to produce it are more readily available. However, the southern yellow pine it’s made from is in high demand, elevating prices.
• OSB and Plywood:
  Southern plywood has remained flat, but 7/16” OSB is rising in small but steady increments.
• Rebar:
  Rebar prices are low amid weak demand.
• T-Posts:
  We’re seeing shorter lead times on T-posts. Lead times have steadily improved but are still extended.
• Windows, Doors, and Siding:
  Supplies are opening up again. While working through the backlog, lead times are still long but getting back to normal.

While the supply chain has opened up and supplies are flowing more smoothly, McCoy’s merchandising and pricing teams continue to source high-quality products and keep them in stock at the best prices. Our millworks are working as fast as possible to get doors and windows shipped out. If you have any questions about the materials listed above or other products, please let us know by calling our hotline at 1-877-542-8986 or dropping by one of our stores. Let us know how we can help – we’re here to serve you.