Strength in lumber prices – a come back in real estate or a false hope?
Peter Oberois
Jun. 1, 2007

In recent days, the lumber prices have recovered the lost grounds. It rallied smartly 20% over the last several weeks. The commercial interests prompted the rally, as it was clear that people were eager to buy new homes no matter now much they have to mortgage their life.

The lumber price rally was predicted in India Daily and it happened. There is the possibility of a larger rally after a mild setback in prices. The question is if this rally is real and real estate is on its way up again?

Lumber price rally is real and expect a 100% increase in price over the next two years. But do not be so confident over the price of your home. The rally is in a commodity that is scarce, required to build new homes and does not have an easy alternative yet.

The craze is about new homes. The craze is not on old homes. The value oriented real estate investors and buyers are not in the market. The only people that are throwing in their last dime in the ‘Roulette Table’ are those who have little knowledge of economics and finance, and are eager somehow to own a new home. These people of minimal resource will eventually get wiped out.

The lumber will rally just like orange juice has done in the last two years. New homes will sell fast again. The over all real estate, however, will collapse like never before.

Strength in lumber prices – a come back in real estate or a false hope?
Peter Oberois
The lumber price rally was predicted in India Daily, and it happened. There is a possibility that a larger rally after a mild setback in prices will occur. The question is if this rally is real and real estate is on its way up again?
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