Stick Trade Blog

Lumber Prices in 2010

Posted January 5th, 2010

2009 ended with annualized housing starts predicted to be apx. 500,000 units. Another tough year for the lumber and building materials industry. So where will 2010 bring us?  The extended tax credit for homebuyers should spur activity and mop up some of the foreclosure & secondary home inventory. The credit is for $8000 and continues until until April of 2010. However, this will not spur strong growth in new housing in the first half of 2010 but rather clean up some of the existing inventory. For the second half, we forsee slightly higher demand as excess inventory is bought up in the first half and . In summary, we see lumber prices remaining soft in the first half of 2010 and then firming up in the second half and also going into 2011.

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