According to the latest CoreLogic Home Price Index (HPI®) Report, released on Tuesday (1-4-22), U.S. national home prices increased 18.1% year-over-year in November 2021. The November 2021 HPI gain was up from the November 2020 gain of 8.1% and was the highest 12-month growth in the U.S. index since the series began in 1976.
Wood Markets News
Mortgage Applications Decline Over 2-Week Holiday Period
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 31, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -2.7% percent on a seasonally adjusted basis from two week earlier. On an unadjusted basis, the Index decreased -32% compared to two weeks ago.
Canfor’s Houston, B.C. Sawmill to Resume Full Production Operations
Canfor Corporation announced on Wednesday (12-29-21) that their Houston, B.C. mill, which has been dealing with cutbacks as a result of challenging market conditions since late summer, will resume full operations effective Monday, January 23, 2022. According to Rosemary Silva, Canfor’s External Relations Senior Advisor, “Currently, we have limited staff performing special projects and preparatory maintenance work…”
GO Lab Inc. to Build First North American Wood-Fiber Insulation Factory in Madison, Maine
GO Lab Inc., a Belfast, Maine startup, has closed on the sale of $85 million in bond funding and completed a New Markets Tax Credit transaction that will fund the construction of a wood-fiber insulation factory at the former UPM paper in Madison. If construction work goes as planned, GO Lab expects to be producing its TimberHP loose-fill insulation in Q1 of 2023, followed by wood fiber batt and board products in Q2 and Q3.
Strike at UPM Finland Facilities Will Not Impact UPM Plywood or Timber Mills
UPM, a Finish forest industry company, has a labor-based strike ongoing at several of their pulp, biofuels, communications, and specialty paper plants located in Finland. The strike, however, does not impact nor concern UPM Plywood and UPM Timber mills, both of which signed business specific collective bargaining agreement with the Industrial Union in December.
Construction Job Openings Gain Year-Over-Year in November
A closer look at the Bureau of Labor Statistics (BLS) Job Openings and Labor Turn Over Survey (JOLTS) for November — with an emphasis on the construction labor market and additional analysis provided by the National Association of Home Builders (NAHB) — reveals that the construction labor market remains tight as the number of quits accelerated. According to the report, the number of open/unfilled construction positions in November dropped to 345,000, or -4.4%.
Job Openings and Labor Turnover Summary Released for November 2021
On Tuesday (1-4-22) the U.S. Bureau of Labor Statistics (BLS) reported the Job Openings and Labor Turnover Summary (JOLTS) for November 2021. According to the JOLTS report, as of the last day in November, the number of job openings decreased to 10.6 million (-529,000 or -6.6%). The number of hires was increased to 6.7 million in November, up from October’s 6.5 million. The hire rate was 4.5% up from 4.4% in October.
Increased Russian Lumber Export Duties Are Now in Effect
Russia enacts higher export duties on minimally processed lumber.
Housing Affordability in October Sinks to its Lowest Level Since 2008
House prices outpace increases in median household income.
Median Home Price Ends 2021 at New Record High – While Number of Homes For Sale Hit New Record Lows
Redfin reports median home sales prices reached record highs at the end of 2021.