According to the U.S. Census Bureau’s data for Starts and Completions by Purpose and Design, with further analysis provided by the National Association of Home Builders (NAHB), townhouse construction increased by 28.1% in 2021. In 2020, medium-density construction lagged as housing demand shifted to more suburban and exurban areas.
Wood Markets News
Homes Sales Accelerating at Record-Breaking Pace
According to the latest report from Redfin, the Seattle-based, technology-powered real estate brokerage firm, in the four weeks ending February 13, 2022, homes sold faster than ever before. A record 57% of homes that went under contract did so within two weeks of being listed.
Existing Home Sales Increase 6.7% Month-Over-Month in January 2022
The National Association of Realtors® (NAR) reported on Friday (2-18-22) that total existing home sales (completed transactions for single-family homes, townhomes, condominiums, and co-ops) rose 6.7% in January from December to a seasonally adjusted rate at 6.50 million homes.
U.S. Leading Economic Index® Declines in January 2022
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (2-18-22) the Leading Economic Index® (LEI) for the U.S. in January 2022. According to the report, the LEI for the U.S. decreased by -0.3% in January to 119.6 (2016 = 100), following a 0.7% in increase in December and a 0.8% increase in November.
Canadian Unemployment Declines in all Provinces in December 2021
According to Statistics Canada (StatsCan), the number of Canadians receiving regular Employment Insurance (EI) benefits dropped by 56,000 (-8.1%) in December to 636,000. The number of regular EI beneficiaries fell in all provinces in December.
U.S. Building Permits Creep Higher, While Housing Starts and Completions Decline in January 2022
The U.S. Census Bureau reported on Thursday (2-17-22) that privately‐owned housing starts in January were at a seasonally adjusted annual rate (SAAR) of 1,638,000. This is -4.1% below the revised December estimate of 1,708,000 but is 0.8% above the January 2021 rate of 1,625,000.
EACOM Timber’s Timmins Sawmill Fire Will Not Lead to Layoffs at the Facility
A fire at EACOM Timber sawmill in Timmins, Ontario on Monday (2-14-22) caused roof damage to the facility, but it was not severe enough to force a curtailment at the operation. Employees returned to the site on Wednesday (2-16-22) after being off on Monday and Tuesday for safety reasons.
Single-Family Built-for-Rent Construction Starts Increase 15.9% Year-Over-Year
There were approximately 15,000 single-family built-for-rent (SFBFR) starts during the final quarter of 2021. Over the course of 2021, 51,000 such homes began construction, which is a 15.9% gain compared to the 44,000 estimated SFBFR starts in 2020.
Fannie Mae’s Economic and Strategic Research Group Down Grades 2022 GDP Expectations
The combination of a less accommodative interest rate environment and an increasingly worker-scarce labor market led the ESR Group to downgrade its expectations for 2022 real GDP growth from 3.1% to 2.8%; however, its expectations for 2023 headline growth remained unchanged at 2.2%, a pace that approaches the long-run trend.
Mortgage Rates Climb Higher in the Week Ending February 17, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending February 17, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.92% with an average 0.8 point, up from last week when it averaged 3.69%. A year ago at this time, the 30-year FRM averaged 2.81%.