The Lull in Sales Continues According to FEA’s Weekly Order Survey Participants

Dealers responding to the FEA Weekly Order Survey continue to report slower, but still steady sales. However, for the third week in a row, and this includes the Labor Day holiday, sales have not been as strong as in the preceding week. Dealers are in the process of following up on previous quotes and are reporting that many of their builder customers are uncomfortable with the current price levels and have decided to postpone or severely cutback an upcoming project. While others have decided to use a home or two already built as models and then build the buyer a new home upon a signed agreement, which will most assuredly include a price acceleration clause. Producers are reporting making inroads on late shipments, but transportation and production issues continue to persist and as a result, they are still shipping 2 – 5+ weeks behind schedule depending on the species or product. The current market run has entered its 22nd week and while inventory levels remain tight, the markets are starting to show some signs of fatigue. Mill offer lists have a selected grouping of additional inventory available for relatively quick shipment. Traditionally home centers slow their replenishment after Labor Day and at these historically high prices pro dealers are looking to keeping their facility inventories lean and mean.