Statistics Canada (StatsCan) reported today (4-20-22) that Canadian consumer prices increased 6.7% year-over-year in March 2022, one percentage point higher than the gain in February (+5.7%). This was the largest increase since January 1991 (+6.9%).
Wood Markets News
Fannie Mae’s Economic and Strategic Research Group Downgrades Its Forecast for Real GDP Growth for 2022 and 2023
Expectations of aggressive monetary policy tightening through 2023 by the Federal Reserve are likely to further soften economic output already being weighed down by decades-high inflation and the ongoing effects stemming from the Russian invasion of Ukraine.
Rent Prices Increase in February, Hitting a New Record High for the 11th Consecutive Month
In February, U.S. rent prices marked their eleventh consecutive month of double-digit gains, rising 13.1% year-over-year, to hit another new record as the highest in the history of the index. Warmer areas of the country again posted the largest price hikes.
March Single-Family Housing Starts, Permits, and Completions All Fall Below February Levels
Privately‐owned housing starts in March were at a seasonally adjusted annual rate (SAAR) of 1,793,000. This is 0.3% above the revised February estimate of 1,788,000 and is 3.9% above the March 2021 rate of 1,725,000. Single-family housing starts in March were at a rate of 1,200,000. This is -1.7% below the revised February figure of 1,221,000.
Canadian Housing Starts Edge Lower in March
The Canadian Mortgage and Housing Corporation (CMHC) reported today (4-19-22) that the trend in housing starts in Canada was 252,497 units in March, down from 253,296 units February. The standalone monthly SAAR of total housing starts for all areas in Canada in March was 246,243 units, a decrease of -2% from February.
Following February’s Surge, Canadian Home Sales and New Listings Decline in March
The Canadian Real Estate Association (CREA) reported today (4-19-22) that national home sales and newly available listings both declined in March 2022, after having jumped briefly higher in February. With sales and new listings falling in equal measure in March, the sales-to-new listings ratio stayed at 75.3% compared to 75.2% in February.
US Home Sales and Median Sales Price Soar Month-Over-Month in March 2022
On Monday (4-18-22), RE/MAX released its National Housing Report (NHR) for March 2022. According to the report, March homes sales jumped 32.3% month-over-month, while the median sales prices hit a new record high of $360,000 (16.7% higher year-over-year). These increases occurred as buyers continue to outnumber sellers.
Higher Mortgage Rates Will Not Slow Single-Family Home Purchase Market in 2022, Freddie Mac Says
Freddie Mac released a new Quarterly Forecast, which predicts that the single-family home purchasing market will remain solid in 2022. Sam Khater, Freddie Mac’s Chief Economist, estimates that rising mortgage rates will lead to moderation in homebuyer demand and house price appreciation.
New 30-Story Cross-Laminated Timber Building to be Built in Winterthur, Switzerland
The Danish architectural firm of Schmidt Hammer Lassen (SHL) has designed a 100-meter (more than 30-story) housing block in the city of Winterthur, near Zurich, Switzerland, that will be world’s tallest cross-laminated timber building when complete. The second tallest building is still under construction in Wisconsin.
Builder Sentiment in April Declines for Fourth Consecutive Month
The National Association of Home Builders/Wells Fargo Housing Market Index reported that builder sentiment in the market for newly built single-family homes edged two points lower in April to a reading of 77. The HMI has posted solid reading for the past 6 months, despite declining for the past four consecutive months.