Black Knight is reporting in their December 5th mortgage monitor report that the ongoing home price correction is exposing a growing pocket of equity risk concentrated among purchases mortgage originating in 2022. Of all homes purchased with a mortgage in 2022, 8% are not at least marginally underwater.
Wood Markets News
UC San Diego to Test 10-Story Wooden Tower’s Ability to Withstand Earthquakes
Engineers are putting the finishing touches on a 10-story wood tower at UC San Diego’s outdoor earthquake simulator located in Scripps Ranch. When completed the building will undergo violent shaking to see how well tall timber structures can handle quakes and other natural disasters.
Twin River Paper Announces Sale of Its Plaster Rock, New Brunswick, Sawmill to Groupe Lebel
Twin Rivers Paper Company announced on Friday that it had reached a definitive agreement to sell its softwood lumber mill located in Plaster Rock, New Brunswick, to eastern Canadian lumber manufacturer and North American forest products company Groupe Lebel.
Canadian Lumber Production Rises Month-Over-Month in September
Statistics Canada reported today that lumber production increased 1.9% from August 2022 to 4,341.8 thousand cubic meters in September. However, production was down year-over-year by 6.1%.
Brazilian Exports of Wood-Based Products Decline Month-Over-Month and Year-Over-Year in October
According to the International Tropical Timber Organization), in October Brazilian exports of wood-based products (except pulp and paper) declined 16% in value year-over-year. The total value fell from US$371.6 million in October 2021 to US$313.1 million in October 2022.
Declining New Home Sales Push AD&C Residential Construction Loans to Post-Great Recession High
The National Association of Home Builders is reporting that slower new homes sales pushed residential construction loan volumes to a post-Great Recession high during 2022Q3. Outstanding builder loan balances are rising as development debt is being held longer as new homes remain in inventory longer.
Total Value of Canadian Building Permits Decline in October as Residential Construction Weakens
Statistics Canada reported today that the total value of building permits in Canada fell 1.4% to $10.0 billion (CAD) in October. On a constant dollar basis (2012=100), the total value of building permits decreased 0.9% to $6.0 billion.
Interfor Completes Acquisition of Chaleur Forest Products From an Affiliate of the Kilmer Group
Interfor Corporation announced on Wednesday that it has completed the previously announced transaction to acquire 100% of the equity interests in the entities comprising Chaleur Forest Products in New Brunswick, Canada, from an affiliate of the Kilmer Group.
US Forest Service Announces 11 New Agreements to Advance Tribal Co-Stewardship of National Forests
On Wednesday, the US Forest Service announced that it has signed 11 co-stewardship agreements with thirteen tribes as part of the agency’s commitment to protect tribal interests in the lands they value as part of their culture and history. These agreements are in response to Joint Secretarial Order 3404.
US Nonfarm Payroll Increases by 263,000 in November; Unemployment Holds Steady at 3.7%
The US Bureau of Labor Statistics today reported that total nonfarm payroll employment increased by 263,000 in November. The unemployment rate was unchanged at 3.7% and has been in a narrow range of 3.5% to 3.7% since March.