Lumber up 35%. Could that cool off the housing revival?

Lumber prices have dropped slightly since a January high of $400 per 1,000 board feet. But the price has surged over 35% since February 2012. I imagine mills shut down during the recession haven’t been able to ramp up production fast enough. The Canadian forests have been hit by the same pine beetle that has devastated much of the Colorado Rockies. I would suspect the stronger Canadian Dollar has also impacted import prices.

Source: NAHB

It made pricing our project at Shadow Lake much more difficult than anticipated.

Could high lumber prices slow the housing construction revival? What do you think?

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