The U.S. Census Bureau reported on Wednesday (5-18-22) that privately‐owned housing starts in April were at a seasonally adjusted annual rate (SAAR) of 1,724,000. This is -0.2% below the revised March estimate of 1,728,000 but is 14.6% above the April 2021 rate of 1,505,000. Single-family housing starts in April were at a rate of 1,100,000.
Wood Markets News
The Single-Family Built-for-Rent Sector Continues to Expand as Housing Affordability Declines
According to the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design report for Q1 of 2022, with additional analysis provided by the National Association of Home Builders (NAHB), the single-family built-for-rent sector (SFBFR) continues to expand as housing affordability hurdles continue to increase.
Largest Ever Mass Timber Building Fire Test to Be Conducted This June by Researchers in Ottawa, Canada
In a project to support market acceptance of tall and large mass timber buildings in Canada, the Canadian Wood Council (CWC) has partnered with both federal and provincial governments to conduct a series of five separate fire research burns on a full-scale mass timber structure in Ottawa. The largest burn is scheduled for some time in June.
Home Sale Bidding Wars Slow for Second Consecutive Month in April
Redfin, the Seattle-based, technology powered real estate company, reported today (5-18-22) that, nationwide, 60.7% of home offers written by Redfin agents in April encountered competition on seasonally annual adjusted basis. This is the lowest level seen since March of 2021. The statistic is down from a revised rate of 63.4% in March.
Mortgage Applications Decline in the Week Ending May 13, 2022
According to data from the Mortgage Bankers Association, for the week ending May 13, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -11.0% compared with the previous week.
Japanese Government to Offer Financial Aid to Companies Switching From Imported to Domestic Lumber
Following the Japanese’s governments ban of lumber imports from Russia, as part of Tokyo’s economic sanctions for Russia’s invasion of Ukraine, Japan’s Forestry Agency announced plans today (5-17-22) to offer financial aid to companies switching their lumber consumption from foreign to domestic sources.
Canadian Investment in Building Construction Up in March, Completing Strong Q1 Results
Statistics Canada (StatsCan) reported today (5-17-22) that the investment in building construction in March rose 1.8% to $20.3 billion (CAD), a new record high. Gains were reported in both the residential and non-residential sector. On a constant dollar basis (2012=100), investment in building construction increased 1% to $12.3 billion.
EIT Climate-KIC and Built by Nature Look to Accelerate Timber Building in Europe with Milan, Italy Project
Built by Nature has announced a EUR 250,000 Accelerator Fund grant to support research into perception barriers to mass timber adoption in Italy. The initiative, coordinated by EIT Climate-KIC, will establish a physical and digital prototype building to drive understanding and adoption of mass timber,
Builder Sentiment Tumbles 8 Points Lower in May, Marking Fifth Consecutive Month of Declines
On Tuesday (5-17-22), The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes tumbled -8 points lower in May to a reading of 69. This marks the fifth consecutive month that builder sentiment has declined.
Shares of Mortgage Loans in Forbearance Decline to 0.94% as of April 30, 2022
According to the new monthly Mortgage Bankers Association’s (MBA) Loan Monitoring Survey (LMS), the total number of loans now in forbearance decreased by -11 basis points from 1.05% of servicers’ portfolio volume in the prior month to 0.94% as of April 30, 2022. The MBA estimates that 470,000 homeowners remain in forbearance plans.