Pricey Lumber Won't Affect Homebuilders: Analyst
Lumber prices recently hit a new high; just as some homebuilder stocks finally started seeing some relief. So will the pricey lumber stall the recovery in homebuilding stocks? David Goldberg, building and building products analyst and Phil Gotthelf, president and commodities analyst at Equidex shared his insights.
“You haven’t seen the surge in the lumber prices coming through the consumer,” Goldberg told CNBC. “You have seen incentives that are being offered by new homebuilders go down, but that’s because demand has been good, tax credit seems to be working, and you’re seeing decent traffic.”
Goldberg has a “buy” rating on Toll Brothers.
In the meantime, Gotthelf said lumber prices are likely to fall as dollar rises.
“If dollar goes up, perhaps we’ll see lumber prices stall, but I don’t think it’s going to have an adverse effect upon the trend unless we see miserable filings for building permits this spring and lousy building activity over the summer,” he said.
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No immediate information was available for Goldberg or Gotthelf.