High lumber futures mean investors are serious about recovery

So the price of lumber futures has hit a six-year high. So what? It’s a great indicator of Wall Street’s confidence in the home-building market.

Anyone can say that housing is recovering (including us), but that lumber futures number tells us that investors honestly believe that homebuilding is going to be increasing in the near future. They’re betting money on it.

Prices have surged 37 percent this year, more than any of the 24 commodities tracked by the Standard & Poor’s GSCI Spot Index. Lumber has more than doubled since January 2009, when the recession and a collapse in the U.S. housing market left a glut of wood. (Emphasis mine.)

More from Bloomberg.

Oh, and homebuilders are more confident about their businesses.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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