According to a report released today (6-16-21) by the National Association of Realtors® (NAR) and authored by the Rosen Consulting Group, decades of underinvestment and underbuilding have created a shortage of housing in the U.S. that is more direct than previously anticipated and will require a concerted and long-term nationwide commitment to overcome.
Wood Markets News
Housing Starts Move Higher in May; Housing Permits and Housing Completions Move Lower
The U.S. Census Bureau has reported that privately‐owned housing starts in May were at a seasonally adjusted annual rate (SAAR) of 1,572,000. This is 3.6% above the revised April rate of 1,517,000 and is 50.3% above the May 2020 rate of 1,046,000.
Mass Timber Construction in the Education Sector is Scoring High Grades
Mass timber construction is increasingly finding its place in midrise residential construction, as well as the commercial and office niche markets. Mass timber construction is also finding its place in other areas, including the educational sector.
Canadian Home Sales Decline -7.4% Month-Over-Month but Rise 103.6% Year-Over-Year
According to statistics released by the Canadian Real Estate Association (CREA) on Tuesday (6-15-21), Canadian national home sales and new listings were both down in May 2021. National homes sales recorded over the Canadian MLS® system declined month-over-month by -7.4% in May.
Canadian Consumer Price Index Increases 3.6% Year-Over-Year in May
Statistics Canada (StatsCan) is reporting that on a year-over-year basis the Canadian Consumer Price Index (CPI) rose 3.6% in May, up from a 3.4% gain in April. This is largest yearly increase since May 2011. Excluding gasoline, the CPI rose 2.5% year-over-year.
Mortgage Applications Increase 4.2% in the Week Ending June 11, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending June 11, 2021, the Market Composite Index — a measure of mortgage loan application volume — increased by 4.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 15% compared with the previous week.
Canadian Housing Starts Edge Higher in May
Canada Mortgage and Housing Corporation (CMHC) is reporting that the trend in housing starts was 280,779 units in May 2021, up slightly from 278,462 units in April 2021. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
North Carolina’s Building Code Council Issues an Alert on the Use of European Lumber in Home Building
North Carolina’s Insurance Commissioner Mike Causey issued an alert on Monday (6-14-21) in regard to European lumber being used in the construction of homes and buildings throughout the state. The Building Code Council has determined European lumber, which is being imported to help with the nation’s lumber shortage, does not meet N.C. building code requirements and, in some cases, could cause catastrophic failures in wall, floor and roof framing.
Softwood Lumber Sends Canada’s Industrial Product Price Index 3.1% Higher in May
Statistics Canada (StatsCan) is reporting that the Industrial Product Price Index (IPPI) is up by 3.1% month-over-month in May, marking the IPPI’s sixth consecutive monthly increase. Year-over-year, the IPPI was up 16.9% — the largest increase since January 1975 when it was up 17.7%.
Builder Confidence in Newly Built Single-Family Homes Declines 2 Points in June
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) is reporting that builder confidence in the market for newly built single-family homes declined 2 points to a reading of 81 in June. This is its lowest level since August of 2020 and after builder confidence topped at a level of 90 last November.