Gold Supporting Member
- Sep 3, 2011
- Professional Status
- Certified General Appraiser
Canadian softwood lumber used to build U.S. homes currently carry tariffs of about 20%. That adds $9,000 to the price of a typical new home and more than $3,000 to the cost of a multifamily unit, NAHB said. At a time when all eyes are on U.S. housing affordability issues, the trade dispute with...
The four-month increase is almost exclusively due to the dramatic rise in softwood lumber prices, which advanced 14.9% in August. Prices have increased nearly 50% since April, the largest four-month gain in the history of the unadjusted data series which dates back to 1949.
It is the second-largest increase since seasonally adjusted data has been available since 1975. The index has decreased 1.3% year-to-date (YTD), a larger decline than the prior record for a July YTD decrease (-0.9% in 2000). Prices paid for goods used in residential construction have only fallen five times between January and June since 2000.
In addition to nominal price increases and tariffs on Canadian lumber, cross-border purchasers have been hurt by a weakening U.S. dollar (USD) in recent months. Since late-March, the USD has depreciated nearly 10%.