According to the latest National Association of Home Builders (NAHB) Home Building Geography Index (HBGI), in Q2 of 2021 residential construction continued its shift towards the suburbs and lower-cost markets, and this trend is particularly evident within the multifamily sector.
Wood Markets News
Price per Square Foot of New Custom Single-Family Homes Increased 8% in 2020
According to the National Association of Home Builder’s analysis of the latest Survey of Construction (SOC) data, which comes from interviews of builders and owners of selected new houses, the median square foot price in a new custom single-family detached (SFD) homes started in 2020 increased 8%. Excluding ‘soaring’ improved lot values, the average SFD increased 4%.
Brazilian Exports of Wood-Based Products Increased 74% Year-Over-Year in July 2021
According to the International Tropical Timber Organization (ITTO), the value of Brazilian exports of wood-based products (except pulp and paper) increased 74% in value year-over-year from US$269.7 million in July 2020 to US$468.9 million in July 2021. Pine sawnwood exports grew 51% in value between July 2020 (US$48.9 million) and July 2021 (US$73.7 million).
Smith Leonard Residential Furniture Sales Increase 7% Year-Over-Year in June
Smith Leonard’s latest Monthly Furniture Insight survey of residential furniture manufacturers and distributors reported that June 2021 sales were 7% higher year-over-year. In the survey report, Smith Leonard points out that the results of their monthly survey of residential furniture manufacturers and distributors have shown significant swings when comparing to the previous year’s monthly results.
Residential Construction Employment Increased in August 2021
A closer look at the U.S. Bureau of Labor Statistics (BLS) total nonfarm payroll report for August 2021, with a focus on construction employment and analysis provided by the National Association of Home Builders (NAHB), reveals that residential construction employment rose by 17,400 in August, while non-residential construction lost -20,300 positions, reflecting declines in builders (-2,800), nonresidential specialty trade contractors (-9,200), and heavy and civil engineering construction (-8,300).
Canadian Confidence Index Dips for Third Consecutive Week
According to the latest Bloomberg Nanos Canadian Confidence Index (CCI), consumer confidence declined for the third week in a row — a reflection of the ongoing concern about a softening economic outlook. The CCI fell 1 point to a reading of 61.6 last week. This is the lowest level since March of this year.
More Homes Available For Sale in August
Realtor.com’s Monthly Housing Report for August 2021 reveals that inventory and new listings improved during the month. There were 432,000 newly listed homes hitting the market during the month of August, an increase of 4.3% in inventory year-over-year. U.S. housing inventory has declined 25.8% year-over-year in August to close out Q3 of 2021, an improvement over last month’s decline of 33.5%.
UK Continues to Struggle with Higher Prices and Shortages of Lumber, Panels, and Building Materials
According to the latest data provided by the UK’s Department for Business, Energy and Industrial Strategy (BEIS), the price of imported sawn or planed wood jumped more than 20% between June and July. The price of some imported timber has jumped 23% in just one month’s time. According to the BEIS, building materials are currently 64% higher than they were in July 2020.
U.S. Wood Pellet Exports Increase Month-Over-Month & Year-Over-Year in July 2021
The United States Department of Agriculture (USDA) Foreign Agricultures Service reported on Thursday (9-2-21) that the U.S. exported 646,494.1 metric tons of wood pellets in July, up from both 603,752.2 metric tons in June and 643,727.5 metric tons in July 2020. The U.S. exported wood pellets to approximately 17 countries in July.
Declining Lumber Prices Cause Canada’s Trade Surplus to Shrink in July
Statistics Canada (StatsCan) is reporting that in July, Canada’s merchandise imports rose 4.2% and exports increased 0.6%. As a result, Canada’s merchandise trade surplus narrowed from $2.6 billion in June to $778 million (CAD) in July. In real (or volume) terms, total imports rose 1.9% in July, while exports edged down 0.3%.