The Building Materials Market: Spring Pricing

UPDATED: February 2024

With a seasonal slow this past winter, pricing dipped slightly around the holidays. The new year was expected to bring a healthy up market in the first quarter of 2024 due to an increase in single home permits, lowering inflation and mortgage rates, coupled with light inventories. However, a week of wet weather in January saw many jobsites in the southern U.S. impassible giving few month-to-month changes into February. We saw continued strength in housing numbers with starts up 8% and interest rates sitting around 6.6%. With Spring on the horizon, we are anticipating trading to strengthen with an increased demand for wood products.

Framing lumber went down by 6% and structural panels went down by 4% from October to February. From a year ago, lumber is down 9.4% and panels had a dramatic increase of 17.3%. Southern Yellow Pine took a sharp down in January due to overstock from lumber mills able to keep up demand in wet weather.

Forms and steel along with all doors, trim, and hardware have not changed much since October.

Framing lumber and panel costs are now far lower than when they were at their highest during the spring and summer of 2021. Here’s what we see now with some of the lumber and other building products in high demand.

• Framing Lumber:
  2x4, 2x6, 2x8, 2x10, 2x12, southern pine lumber, and western species lumber prices overall have been flat but expect increases all on species.
• OSB and Plywood:
  OSB continues to remain flat with increase expectations as building starts up again. Plywood to follow the same pattern.
• Rebar:
  Rebar prices have been flat but are expected to increase.
• T-Posts:
  We’re seeing shorter lead times on T-posts. Lead times have steadily improved but are still slightly extended.
• Windows, Doors, and Siding:
  Supplies are opening up again. While working through the backlog, lead times are still long but getting back to normal.

While the supply chain has opened back up and supplies are flowing more smoothly, McCoy’s merchandising and pricing teams continue to source high-quality products and keep them in stock at the best prices. Our millworks are working as fast as possible to get doors and windows shipped out. If you have any questions about the materials listed above or other products, please let us know by calling our hotline at 1-877-542-8986 or dropping by one of our stores. Let us know how we can help – we’re here to serve you.