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To: DanZ who wrote (42696)	8/10/2002 3:27:30 PM
From: Joe Stocks	Read Replies (1) \| Respond to of 53068

>> I don't know if there is a correlation between lumber prices and the demand for homes, but logic says that the demand for homes could increase if lumber prices go down. This assumes that builders pass the savings on to consumers.<< Dan, Home building causes more demand for lumber. I don't see lower lumber causing a higher demand for housing. The more the demand usually the higher the prices. That's true unless you have tariff war going on with Canadian Lumber and the supply is hurt. I don't see any other way that more homebuilding would cause lumber prices to go down. I owned a full service lumber yard from 1986 to 1990. The recession an many small builders going belly up put a strong financial strain on my business and I ended up shutting it down in 1990. I didn't like the business anyway as it was too cyclical and had small margins. I doubt if many builders pass on the savings on the lumber package. At one time I could have quoted you the percentage of the total cost of the home but as I recall any savings there were some what insignificant in the big picture. I don't sell lumber at my current business. Use to a "convenience" selection, but took it out in 1997 to expand my garden center and gift shop. Much higher margins and most importantly, more female shoppers and those pretty, low cut summer dresses. wink! wink! Joe