The Ro-Mac Lumber & Supply, Inc. Whole House Commodity Index (Index) for October 2014 is just like the housing market—it’s looking for traction. Manufacturers and mills believe they are in control of pricing one month, and the next month they are begging for orders. Although the general trend has improved, uncertainty remains a constant factor in housing.
Without a clear and sustained upward movement in housing, we should continue to expect volatility. The Index rose 0.4% to $30,350.60. This marks the sixth straight data point in which the Index priced out in a very narrow range. The message is clear—housing is still facing headwinds.
The following were the notable price movers in the Index from September to October:
The Ro-Mac Lumber & Supply, Inc. Whole House Commodity Index is based on wholesale costs of the base components to build a 2,200 square foot wood frame home with a concrete stem wall in Central Florida. The Index includes foundation, metal, concrete, block, stucco, cement, wood framing, siding, sheathings, trusses, roofing, drywall, insulation, windows, doors, trim, garage doors, and most building hardware. It does not include décor, electrical, plumbing, mechanical, landscaping, or labor. Because the Index uses current wholesale costs, this should be a strong indicator of the direction of building prices for the next 30-45 days.
Don Magruder is the Chief Executive Officer of Ro-Mac Lumber & Supply, Inc. in Central Florida. Go to www.romaclumber.com to sign-up for the Index and other free market reports. To sign-up for this information via email, contact Rebecca Ballash agt