In a recent posting, the National Association of Home Builders (NAHB) has brought to light the “missing middle” in the residential construction sector. The missing middle includes the development of medium-density housing, which includes townhouses, duplexes, and other small multifamily unit properties.
Wood Markets News
Alberta Renews 20-Year Forest Management Agreement With West Fraser and Tolko Industries in High Prairie and Slave Lake Regions
The Alberta provincial government announced on Wednesday (2-22-22) that it has renewed its 20-year joint forest management agreement (FMA) with West Fraser and Tolko Industries. The FMA covers 245,527 hectares in the Slave Lake and High Prairie Regions in the province.
Canfor to Sell Mackenzie Assets for $70 Million
Canfor Corporation on Thursday (2-24-22) announced that it has entered into a Letter of Intent with McLeod Lake Indian Band and Tsay Keh Dene Nation to sell its forest tenure in the Mackenzie region of British Columbia and in a separate agreement with Peak Renewables to sell its Mackenzie site, plant, and equipment for a combined price of $70 million (CAD).
Pending Home Sales Fall for Third Consecutive Month and Were Down Year-Over-Year in January 2022
The National Association of Realtors® (NAR) reported on Friday (2-25-22) that their Pending Homes Sales Index (PHSI), which is based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops, declined -5.7% in January 2022 (from December 2021) to a reading of 109.5.
Personal Income, Disposable Income, and Personal Consumption Expenditures All Increased in January 2022
The U.S. Bureau of Economic Analysis reported on Friday (2-25-22) that, according to estimates, personal income increased $9.0 billion (less than 0.1%) in January. Disposable personal income increased $19.8 billion (0.1%). Personal consumption expenditures increased $337.2 billion (2.1%).
University of Michigan Final Consumer Sentiment Index Declines for February 2022
The University of Michigan today (2-25-22) released its final Consumer Sentiment Index (CSI) for February. The Index of Consumer Sentiment declined to a reading of 62.8 in February, down from 67.2 in January. This is a month-over-month decrease of -6.5% and down -18.2% year-over-year (76.8 in February 2021).
New Home Sales Decline Month-Over-Month and Year-Over-Year in January 2022
On Thursday (2-24-22), the U.S. Census Bureau and the Department of Housing and Urban Development jointly announced that new residential single-family home sales for January 2022 were at a SAAR of 801,000, according to estimates. This is -4.5% below the revised December rate of 839,000.
Confidence in the Market for New Multifamily Housing Improved in Q4 2021
According to the latest results from the National Association of Home Builder’s (NAHB) Multifamily Market Survey (MMS), in Q4 of 2021, confidence in the market for new multifamily housing improved. The Multifamily Production Index increased 1 point to a reading of 54 from Q3. The Multifamily Occupancy Index declined six points to a reading of 69.
GDP for Q4 2021 Increases in “Second Estimate” from Bureau of Economic Analysis
The Bureau of Economic Analysis (BEA) released today (2-24-22) its “second estimate” of real gross domestic product (GDP) for Q4 2021. BEA reports GDP increased at an annual rate of 7.0%. In Q3 2021, the real GDP increased 2.3%.
30- and 15-Year Fixed Mortgage Rates Decline Slightly in the Week Ending February 24, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending February 24, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.89% with an average 0.8 point, down from last week when it averaged 3.92%. A year ago, at this time, the 30-year FRM averaged 2.97%.