David in D

Lumber's Decline Likely Means Predictions of Housing Bottom Were Premature

I'm not convinced that the presupposition that lumber prices will be a forward looking indicator for home price stability is accurate. It is possible that you could have declining inventories of existing and already constructed new houses, which in turn produces possible price-stability, while still having major homebuilders on the sidelines.

In other words, I think its possible that lumber prices will not preceed house price stability but possible occur simultaneously with stability.

Thoughts?