More Good News for Home Builders, This Time on Supply Costs
As of the month of June building supply costs are finally at a steady price after months of increase due to supply and demand.
According to National Mortage News, the price of residential construction products and services, excluding energy, was unchanged from May, with the last monthly increase occurring in March this year, according to analysis from the National Association of Home Builders. In the previous two months, the price of supplies and other construction inputs had inched downward by 0.1% and 0.2%, respectively. Data, which comes from the Bureau of Labor Statistics Producer Price Index, was not seasonally adjusted.
Year to date, the price of building materials has headed up marginally by 0.5%, in contrast to the rise reported in the first half of 2022 when supply costs accelerated 4.8%.
When volatile energy expenses are included, the cost of residential construction goods also flattened from May. But compared to a year ago, prices declined 3.6%, the largest annual drop since 2009.
Among individual supply components that make up the PPI, costs of softwood lumber and ready-mix concrete increased month to month but were offset by falling prices of other materials, NAHB said.
Lumber prices climbed up for the second time in three months, rising 3.9% between May and June. The cost of lumber is now up by 7.2% since April. Despite the recent upswing, softwood lumber prices are still down 20.9% compared to a year ago and at less than half their levels during pandemic-impacted 2021.
