Lumber prices have remained strong in 2018, and log prices, stronger, setting a record for sustained pricing. Moreover, mortgage rate also remained low throughout the year as the market maintained its strength, according to Natural Resource Report.
Unprecedented log prices held at a record high through the winter and remained steady at US$890 per thousand board feet. While the log price, according to Natural Resource Report, did hit US$909, it was only a spike that lasted a month.
A number of statistics are pointing to strong long prices in the future including tight home inventories and housing starts that are up 11 per cent as compared to 2017. And while the weather may not be as extreme as the events seen last year, wood products are still in demand as efforts to rebuild continue in the wake of the numerous weather events that occurred in 2017 as insurance payouts remain slow.
Moreover, the strong economy is also absorbing the effects of a higher mortgage rate, which are remaining low.
Source: Natural Resource Report