On Tuesday (2-1-22), the U.S. Bureau of Labor Statistics published the Job Openings and Labor Turnover Summary (JOLTS) for December 2021. According to the JOLTS report, as of the last day in December, the number of job openings was little changed at 10.9 million. The job opening rate was unchanged at 6.8%, and the number of job openings was little changed in all regions.
Wood Markets News
U.S. Commerce Department Issues Preliminary Determination on 3rd Administrative Review of Certain Softwood Lumber Products Imported From Canada
The US Department of Commerce today (1-31-22) issued its preliminary determination in their Third Administrative Review of certain softwood lumber products from Canada. The new combined “All Others” rate of 11.64% is down from the current rate of 17.91%. This Preliminary Determination does not change the duties currently being collected, nor will it be the final rate.
Manitoba and LP Canada Sued by Pine Creek First Nation Over Duck Creek Forest Rights
According to a notice of application filed in a Manitoba courtroom on January 26, 20222, PCFN says the province has “failed to enforce critical conditions of Louisiana-Pacific’s forestry authorizations,” including logging in the area without a long-term forest management plan approved by the First Nation.
Newly Constructed Houses Make Up One-Third of All U.S. Homes Sales in December
According to a report released today (1-31-22) by Redfin, the Seattle-based, technology-powered real estate brokerage, more than one-third (34.1%) of U.S. single-family home sales in December were for new construction. This is the highest share on record and 8.7% above December 2020 reading of 25.4%. Newly built homes have taken up an increasing portion of U.S. housing inventory over the last 10 years, with a major acceleration in mid-2020 after the pandemic began.
New Partnership Will Allow Sans Group to Process Wood Waste into Value-Added Wood Products
Sans Group — which operates sawmills and remanufacturing plants in Port Alberni and on the mainland in B.C. — announced on Wednesday (1-26-22) that it has entered into a strategic lumber supply agreement with Seaton Forest Products, based in Smithers. The agreement allows San Group to process waste wood from Seaton into commodity grade lumber products.
Ireland’s Forest Crisis Continues to Grow
According to the Construction Industry Federation (CIF), Ireland’s forest industry remains in crisis. Delays in issuing licenses needed to plant, harvest, and transport trees to facilities for processing have been ongoing for over three years. The bottleneck is hitting house building, slowing the supply of timber and forcing many to import lumber. It has also contributed to the rise in the costs of new homes.
Canadian Industrial Product Price Index Moves Higher in December on Softwood Lumber Gains
Statistics Canada (StatsCan) reported today (1-31-22) that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), rose 0.7% on a monthly basis in December and were up 16.1% year-over-year. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell -2.9% month-over-month in December but increased 29.0% year-over-year.
Home Buyers’ Expectations of Affordability Declined Throughout All of 2021
The latest Housing Trend Report (HTR), released for Q4 2022, shows that home buyers’ expectations for affordability declined throughout 2021. In Q4, the share of buyers who could afford less than half the homes available in their market was at 76%. In the Q4 of 2020, it was 63%. It increased to 65% in Q1 of 2021, rose again in Q2 to 71%, and then moved higher in Q3 to 73%.
Allowable Annual Cut Reduced for B.C.’s Okanagan Timber Supply Area
Shane Berg, B.C.’s deputy chief forester, has announced that he has set a new allowable annual cut (AAC) level for the Okanagan Timber Supply Area (TSA), effective immediately. The new AAC for the Okanagan TSA is 2,462,800 cubic meters. It is a decrease of approximately 20% from the previous AAC of 3,078,405 cubic meters, which included an increase to allow salvage of stands affected by the mountain pine beetle.
Built-to-Rent Home Market Expected to Soar to New Heights in 2022
According to Yardi Matrix — the Santa Barbara, California-based provider of research and reports on multifamily, student housing, office, industrial, and self-storage properties across the U.S. — 6,740 new built-to-rent homes were completed in 2021. This is the highest yearly total to date on record. Other industry sources, including a new RentCafe study indicate that the trend is just beginning and growing at a significant pace.