The major news today is that existing home sales were down 27 percent. So the moral of the story is that , as housing remains flat, lumber supply and lumber demand will continue to reach an equilibrium. Lumber mills remain cautious as potential as potential homebuyers remain on the sidelines. This is impacting wholesale lumber prices. According to the CME Random Lengths lumber futures, September lumber futures closed at $209.40 per 1,000 board feet.
In looking at the hardwood side, maple lumber, oak lumber, and other solid hardwoods are high end products. The key for the high end is to target affluent consumers that are less impacted by the economy than the middle class. High end consumers are more likely to buy high end cedar lumber fencing or furniture made from quality hardwoods.