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.
Wood Markets News
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.
Bid Group Announces Investment to Expand Mirabel, Quebec Facility
Bid Group has announced that it plans to invest over $1.5 million (CAD) at its existing facility in Mirabel, Quebec, Canada. The investment will grow the company’s production capacity by over 50% and will add 5,000 square feet to its existing footprint. Construction is scheduled to be completed in the summer of 2022.
Timberline Announces $63 Million Investment in Bell Bay Operation
Timberlink, one of Australia’s leading national timber manufactures and distributors, has announced that it is investing $63 million (AUD) in its Bell Bay operation as part of a plan to substantially increase its structural timber output. When completed the project is expected to increase the timber manufactured at the site by more than 50 percent, providing material for an estimated 7000 new houses.
30-Year Mortgage Rate Creeps Higher, 15-Year Inches Lower in the Week Ending December 16, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending December 16, 2021. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.12% with an average 0.6 point, up from last week when it averaged 3.10%. A year ago, at this time, the 30-year FRM averaged 2.67%.
Mortgage Applications for New Homes Decline in November
According to the latest Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for November 2021, mortgage applications for new home purchases declined -3.0% month-over-month and 2.2% year-over-year. Based on data from the BAS, the MBA estimates that new single-family home sales were running at a seasonally adjusted annual rate of 905,000 units in November.