According to the latest release of the National Association of Home Builders’ (NAHB) Home Building Geography Index (HBGI), the trend of apartments and other multifamily residential construction continued to shift to suburban areas in Q3 2021. According to the HBGI between Q3 of 2020 and 2021, the share of new multifamily permits fell from 40.5% to 37.9% in large metro core markets.
Wood Markets News
Leading Economic Index® for U.S. Climbs Higher in November
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (12-20-21) the Leading Economic Index® (LEI) for the U.S. in November. According to the report, the LEI for the U.S. increased by 1.1% in November to a reading of 119.9 (2016=100), following a 0.9% increase in October and a 0.3% increase in September.
Loans in Forbearance Decline in New Mortgage Bankers Association Loan Monitoring Survey
The Mortgage Bankers Association (MBA) today released its new monthly Loan Monitoring Survey (LMS), which tracks the total number of loans now in forbearance. According to the LMS, the total number of loans in forbearance in November declined by 39 basis points from 2.6% of servicers’ portfolio in the month prior to 1.67% as of November 30, 2021.
Teal Jones to Build New Sawmill Facility in Bossier Parish, Louisiana
Teal Jones, a 70-year-old, family-owned company based in British Columbia, Canada, today announced that the company is looking forward to bringing a $110.5 million Southern Yellow Pine lumber mill to Bossier Parish, Louisiana. To become a reality, the company is pursuing a payment in lieu of taxes agreement with local taxing entities. Teal Jones expects to source southern yellow pine timber from their landowner partners in this project, as well as other regional suppliers.
Canfor Corporation Announces Purchase of Millar Western Forest Products’ Alberta Assets
Canfor Corporation on Thursday (12-16-21) announced it has entered into an agreement with Millar Western Forest Products Ltd. to acquire the Millar’s solid wood operations located in Alberta, Canada, and associated tenure for $420 million (CAD), which includes $56 million in working capital. Millar Western’s solid wood operations will add 630 million board feet of production capacity.
Oregon Mass Timber Coalition Project Selected as Finalist for New Federal Funding
A proposed project by the Oregon Mass Timber Coalition to create a mass timber modular facility in Portland has been selected as one of 60 finalists for new federal funding through the $1 billion Build Back Better Regional Challenge. If chosen to move forward, they could receive up to $100 million to expand mass timber production, boost jobs, help with wildfire prevention, and lead to more affordable housing.
Canadian Home Sales and Prices Edged Higher in November
According to statistics released on Wednesday (12-15-21) by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems edged up 0.6% between October and November 2021. The small increase followed on the heels of a 9% increase in activity in October. The actual (not seasonally adjusted) number of transactions in November 2021 was very strong historically, edging down a scant -0.7% on a year-over-year basis.
U.S. Home Values Up 1.2% Month-Over-Month and 19.3% Year-Over-Year
In November, U.S. home values increased 1.2% from October and year-over-year they are 19.3% higher. This is a record high for price appreciation for any 12-month period in this century. The report notes that while monthly growth slowed nationally, it accelerated in 30 of the 50 largest metro areas. If this trend continues, the market cooling over the past few months may be short-lived, and this could be an unseasonably warm winter housing market.
Real Estate Bidding Wars at Lowest Level in 11 Months
In their latest report, Redfin, the Seattle-based, technology-powered real estate brokerage firm, is reporting that 59.5% of home offers written by their agents faced competition in November. This is the lowest level in 11 months, and it is down from a revised rate of 61.8% in October and the peak pandemic levels of 74.6% set in April of this year.
U.S. New Residential Housing Starts, Permits, Completions All Increase in November
The U.S. Census Bureau reported on Thursday that privately‐owned housing starts in November were at a seasonally adjusted annual rate (SAAR) of 1,679,000. This is 11.8% above the revised October rate of 1,502,000 and is 8.3% above the November 2020 rate of 1,551,000. Single-family housing starts in November were at a rate of 1,173,000, and this is 11.3% above the revised October figure of 1,054,000.