The Bureau of Economic Analysis (BEA) released today (12-22-21) its “third” estimate of real gross domestic product (GDP) for 2021 Q3. In the “third” estimate for the third quarter, real GDP increased 2.3% — 0.2% higher than in the “second” estimate. The estimate released today is based on more complete source data than were available for the “second” estimate, which was issued last month.
Wood Markets News
Ontario’s First Mass Timber, Net-Zero Carbon Institutional Building Taking Shape at Centennial College
Construction is underway on Ontario’s first mass timber and net-zero carbon institutional building. The A-Block expansion program at Centennial College’s Progress Campus in Scarborough began in November and progress is already visible at the site. The expansion includes a 136,000 square-foot extension of the existing A-Block Building, using FSC certified black spruce from Northern Quebec, which has been cross-laminated and glue-laminated.
Existing Home Sales Up Month-Over-Month but Decline Year-Over-Year in November
On Wednesday (12-22-21), The National Association of Realtors® (NAR) reported that total existing home sales (completed transactions for single-family homes, townhomes, condominiums, and co-ops) increased 1.9% from October to a seasonally adjusted rate of 6.46 million homes in November. This marks the third consecutive month of growth. Year-over-year, however, sales are down -2.0% (6.59 million in November 2020).
U.S. Consumer Confidence Increases in December
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (12-22-21) their Consumer Confidence Index® (CCI) for December 2021. The CCI increased in December, after an upwards revision in November, and an uptick in October. This follows decreases in September, August, July, and June. The Index now stands at 115.8 (1985=100), up from 111.9 in November.
Mortgage Applications Decline in Week Ending December 17, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 17, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -0.6% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -1% compared with the previous week.
Canada Officially Challenges US Duties on Canadian Softwood Lumber Under USMCA Trade Agreement
The Canadian government, in a statement released on Tuesday (12-21-21) by Canadian Trade Minister Mary Ng, said that Canada has filed an official notice to challenge U.S. duties on Canadian softwood lumber under the US-Mexico-Canada (USMCA) trade agreement. The United States nearly doubled duties on softwood lumber exported from Canada in November.
Donaldson Group Announces Purchase of Stewart Milne Timber Frame Business
Donaldson Group, a Scottish timber specialist that was founded in 1860 and continues to be operated by the original owner’s family, has announced that they have bought the timber frame arm of housebuilder Stewart Milne for an undisclosed sum. Milne put the business division up for sale in October as part of an ongoing restructuring and refinancing process by the Scottish homebuilder.
Fannie Mae’s Economic and Strategic Research Group Revises Full-Year 2021 Economic Growth Upward
According to the December 2021 commentary from the Fannie Mae Economic and Strategic Research Group (ESR), the outlook for full-year 2021 economic growth was revised upward to 5.5% — an increase of 0.7 percentage points compared to November’s projections. The increases are due primarily to stronger-than-anticipated consumer spending and inventory investment data.
Census Bureau’s Survey of Market Absorption of Apartments Moves Higher on Strong Demand and Low Vacancies
According to data from the recently released U.S. Census Bureau’s Survey of Market Absorption of Apartments (SOMA) and further analysis provided by the National Association of Home Builders (NAHB), the multifamily sector saw continued improvement in Q2 of 2021 due to strong demand and low vacancy rates. The absorption rate of unfurnished, unsubsidized apartments rose by 15 percentage points to 72% in Q2 of 2021.
Rent Prices Increase 21% Year-Over-Year, Including 7% Between October and November
Redfin, the Seattle-based, technology-powered real estate company, is reporting that average monthly rents increased nationwide by 21% year-over-year and were up 7% in the month between October and November. Redfin’s rental data only goes back 2-years, but these are the highest annual and monthly growth rates in at least two-years.