Lumber prices continue to show signs of stability. This is certainly a positive sign for the housing market as lumber prices tend to have a very high correlation with housing prices. Although lumber futures have recently come off their highs the trend remains clear – up.
The latest data on lumber demand from Random Lengths also shows stability in demand as total production jumped 4% month over month:
Canadian lumber production in October totaled 1.8 billion board feet, up 4% from September and the highest mark since last November, according to Statistics Canada. The British Columbia Southern Interior gained 20% month-to-month; all of B.C., as well as Nova Scotia, gained 10%. Only Quebec decreased from September. With a second straight monthly increase, year-to-date production reached 15.7 bbf, down 23% from last year. Output in British Columbia reached 8.1 bbf through October, down 22%. Alberta output declined just 10%, to 2.4 bbf.