According to data released today (2-15-22) by Canada Mortgage and Housing Corporation (CMHC), the trend in housing starts declined in January 2022 to 254,133 units, down from 261,352 units in December 2021. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
Wood Markets News
Producer Price Index for Final Demand Increases 1.0% in January 2022
The Bureau of Labor Statistics (BLS) reported today (2-15-22) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 1.0% in January 2022. The January rise follows a revised 0.4% increase in December, a 0.9% increase in November, and 0.6% increases in October, September, and August.
Mortgage Credit Availability Declined in January as Lending Standards Tighten
According to the latest Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI), which analyzes data from the ICE Mortgage Technology, mortgage credit availability decreased in January. The MCAI fell by -0.9% to a reading of 124.8 in January. A decline in the MCAI indicates that lending standards are tightening.
LP Building Solutions to Sell its Equity Interest in I-Joist Joint Venture to Resolute Forest Products
LP Building Solutions announced today (2-14-22) that it has entered into an agreement with Resolute Forest Products Inc. to sell its 50% equity interest in two joint ventures that produce I-joists. The sale, which is subject to customary adjustments, is valued at $50 million. The joint ventures are comprised of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership.
Lawsuit Challenges Bureau of Land Management’s Post-Archie Creek Fire Logging Plan
Cascadia Wildlands, Oregon Wild, and the Klamath-Siskiyou Wildlands Center, all environmental organizations, filed a lawsuit on February 8, 2022, that challenges the Bureau of Land Management’s (BLM) post-Archie Creek Fire logging plans. Nick Cady, Cascadia Wildlands Legal Director said on Tuesday that this is the BLM’s first major post-fire salvage logging operation under a relatively new resource management plan.
Commercial/Multifamily Borrowing Increases 79% Year-Over-Year in Q4 2021
According to today’s (2-14-22) release of the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, loan originations in Q4 2021 were 79% higher year-over-year and 44% higher from Q3 2021. The surge in Q4 2021 was led by increases in originations for hotel, office, industrial, and retail properties.
Allowable Annual Cut Reduced on Tree Farm License 8
B.C.’s chief forester, Diane Nicholls, announced on Thursday (2-10-22) that a new allowable annual cut (AAC) level for Tree Farm License (TFL) 8 in the Southern Interior has been set, effective immediately. The new AAC for TFL 8 is 158,400 cubic meters with a maximum of 131,500 cubic meters harvested from terrain of less than 45% slope.
Dequincy, Louisiana Sawmill Back in Operation; Interfor Celebrates First Loads Shipped from the Facility
After being idled indefinitely by Georgia-Pacific Corp. in May 2020 (and only purchased in July of 2021 by Interfor Corporation) the first truckloads of Interfor lumber from its Dequincy, Louisiana sawmill went out for sale on Wednesday February 9.
Timberlink Investing Millions to Upgrade Tarpeena Sawmill and Construct New CLT/GLT Plant
Timberlink’s Tarpeena sawmill, located in South Australia, is undergoing a multi-million-dollar expansion. The project will include an upgrade the existing sawmill and the construction of Australia’s first cross laminated timber (CLT) and glue laminated timber (GLT) manufacturing plant, which will be co-located on the sawmill’s site.
Canadian Investment in Building Construction Up in December and for the Year
Statistics Canada (StatsCan) reported on Thursday (2-10-22) that investment in building construction in December increased by 1.9% to 18.4 billion (CAD). Gains were recorded in both the residential and non-residential sectors. On a constant dollar basis (2012=100), investment in building construction grew 1.2% to $11.5 billion.