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Lumber vs. US housing market - intermarket view

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RichKid

RichKid

PlanYourTrade > TradeYourPlan
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Just posting this chart of lumber, saw in a John Murphy article about how a fall in lumber prices heralded a downturn in housing. This chart suggests it's already on its way down. I assume lumber is used for construction of houses and hence less demand means lower prices? Wish I had the housing figures (not sure which lot) to compare it to. Will check the Murphy article again to confirm. Monthly chart btw.
 

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Re: Lumber v US housing market- intermarket view

RichKid said:
Just posting this chart of lumber, saw in a John Murphy article about how a fall in lumber prices heralded a downturn in housing. This chart suggests it's already on its way down. I assume lumber is used for construction of houses and hence less demand means lower prices? Wish I had the housing figures (not sure which lot) to compare it to. Will check the Murphy article again to confirm. Monthly chart btw.
Click to expand...

WASHINGTON (MarketWatch) - New construction of U.S. homes fell 5.6% in October to a seasonally adjusted annual rate of 2.014 million, the Commerce Department said Thursday.

Building permits - which foreshadow future activity - dropped 6.7% to 2.071 million annual units. Read the full report.
 
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