Versowood Group, Finland’s largest private sawmill and processor, has announced that it has entered into an agreement to purchase the business, equipment, and buildings of the Kissakoski sawmill owned by Veisto Oy. The transaction expected to be completed and close by July 2022.
Wood Markets News
Housing Starts and Completions Improve Month-Over-Month, but Building Permits Lag in February 2022
The U.S. Census Bureau reported on Thursday (3-17-22) that privately‐owned housing starts in February 2022 were at a seasonally adjusted annual rate (SAAR) of 1,769,000. This is 6.8% above the revised January estimate of 1,657,000 and is 22.3% above the February 2021 rate of 1,447,000.
Potential Solution to UK’s Housing Shortage: Offsite Timber Construction With OSB Panels
Members of the UK’s House of Commons recently received a research briefing on ways to address the growing housing shortage in England. Members were told that an estimated 340,000 new homes would be needed each year to meet the growing demand. Offsite timber frame construction could be the solution for housebuilders.
Mortgage Rates Climb Above 4% in the Week Ending March 17, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending March 17, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 4.16% with an average 0.8 point, up from last week when it averaged 3.85%. A year ago, at this time, the 30-year FRM averaged 3.09%.
Weekly Jobless Claims Decline in the Week Ending March 12, 2022
The U.S. Department of Labor is reporting that an additional 214,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, March 12, 2022. This is a decrease of 15,000 from the previous week’s revised level.
Mosaic Forest Management to Defer Timber Harvesting on Some of its Timberland, Opting to Sell Carbon Credits Instead
Mosaic Forest Management, which oversees forest holdings for two B.C. companies—TimberWest Forest Corp. and Island Timberlands L.P.—which are owned by three large pension plans announced on Wednesday that it will defer the harvesting of 40,000 hectares of “old forests” on Vancouver Island and Haida Gwaii for at least 25-years.
Britton Lumber Company’s Eastern White Pine Mill in Bath, New Hampshire to be Expanded and Upgraded
Britton Lumber Company has announced their intention to expand their Eastern White Pine sawmill facility located in Bath, New Hampshire in August 2022. The mill currently is approximately a 30,000 square foot facility producing approximately 9 million board feet annually.
Prices of Goods Used in Residential Construction Increase 1.6% in February 2022
According to the latest Bureau of Labor Statistics (BLS) Producer Price Index (PPI) report, with analysis provided by the National Association of Home Builders (NAHB), the price of goods used in residential construction, less energy and not seasonally adjusted, increased 1.6% in February 2022.
Building Materials and Supplies Lead Canadian Wholesale Sector Sales Higher in January
Statistics Canada (StatsCan) reported today (3-16-22) that sales in the wholesale sector rose 4.2% in January to $79.8 billion (CAD). The increase in January marks the sixths consecutive month of growth in the sector and the is the largest since June 2020. Five of the seven subsectors posted gains.
Home Builder Sentiment Declines for Fourth Consecutive Month in March
On Wednesday (3-16-22), 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 edged 2-points lower in March to a reading of 79. Despite four consecutive monthly declines, the HMI has posted solid reading for the past 6-months.