The Building Materials Market: Summer Pricing

UPDATED: July 2024

The lumber market is becoming more and more recognizable in seasonal trends compared to the past four or five years with the pandemic and material shortages. We saw slow market growth during March, April, and May when building started up again for the year. However, we are seeing an overall seasonal decline moving into the summer with the heat making it too hot to work in some cases. The big news from this past spring was the stormy weather experienced by homes in our region where many structures were damaged from hail, high winds, flooding, and tornados.

While there was a decrease in both lumber and panels from the start of March compared to June, that doesn’t tell the whole story. At the end of April, lumber had increased 4.7% compared to March and a slight increase of 1.9% year over year. The biggest gain was in the panel market where it was up 15% at the end of April compared to the month previous and up a whopping 35.7% year over year at the time. Just when buyers started ramping up for spring, one of the largest OSB-producing mills (one of only five for our region) experienced a fire and halted production.

Going into May, costs trended downward as mill production lowered and supply caught up with demand. The beginning of June saw lumber pricing rise 3% compared to the month previous and a panel decrease of 11%. By mid-June, all gains had been given back and we have settled at levels not seen in many years. OSB dramatically decreased as production has finally been restored.

Forms and steel along with all doors, trim, and hardware have not changed much since February.

Framing lumber and panel costs are now far lower than when they were at their highest during the spring and summer of 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 yellow pine lumber, and western species lumber prices overall continue to set new lows. With over production out of the mills, markets are not looking to improve. Supply continues to outpace demand.
• OSB and Plywood:
  OSB saw a rollercoaster of pricing this spring, but against a year ago June, all panels are back to the low levels set last year.
• Rebar:
  With the extended wet weather we experienced this spring, demand has decreased which has created a soft and saturated market. Steel pricing looks to remain soft from both domestic and import sources.
• T-Posts:
  Pricing has remained stable over the past six months and supply has been plentiful. With fence building season in full swing, we expect demand to remain firm throughout the summer.
• Windows, Doors, and Siding:
  Lead times on doors & windows have improved and product is readily available while pricing remains steady.

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.