“We just saw the first full year of above-average construction since the mid-2000s housing crash. This isn’t a new boom cycle of new construction so much as it’s an attempt to get even from the last bust. There is still a long way to go to catch up from more than a decade of slow construction, and some markets have longer to go than others.”
Wood Markets News
Construction Job Openings Continued to Grow in October
In October, the number of unfilled construction jobs increased to 410,000. According to the National Association of Home Builders (NAHB) this is the highest level in the history of the data service, which dates back to late 2000. Hiring in the construction remained strong, rising to a 5.0% rate.
Mortgage Applications Increased in Week Ending December 3, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 3, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 2.0% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 45% compared with the previous week.
Job Openings and Labor Turnover Summary Released for October 2021
On Wednesday (12-8-21), the U.S. Bureau of Labor Statistics (BLS) reported the Job Openings and Labor Turnover Summary (JOLTS) for October 2021. According to the JOLTS report, as of the last day in October, the number of job openings increased to 11.0 million (+431,000). The Job opening rate was little changed at 6.9%. The number of hires was little changed at 6.5 million.
Resolute Forest Products Expands Operations at Two Arkansas Sawmills
With the acquisition of two sawmills in 2020 — in El Dorado and Glenwood, Arkansas — Resolute Forest Products has invested through a combined capital program over $28 million and added more than 160 new jobs over the past two years.
West Fraser Completes Acquisition of OSB Mill in U.S. South
West Fraser Timber Co. Ltd. announced today (12-6-21) that it has completed the acquisition of the Georgia Pacific oriented strandboard (OSB) mill located near Allendale, South Carolina. The original news release of for purchase was issued on October 26, 2021.
Fannie Mae Home Purchase Sentiment Index® Decreases for November
Fannie Mae today (12-7-21) released their Home Purchase Sentiment Index® (HPSI) for November. The HPSI for November decreased -0.8 points to a reading of 74.7, as consumers expressed only contrasting views of homebuying and home-selling conditions but also their greatest economic pessimism in 10-years.
Timberlink Announces New Brand Name for their CLT and GLT Product Lines: NeXTimber
NeXTimber by Timberlink is the new brand name for Timberlink Australia’s forthcoming engineered wood building solution products. NeXTimber by Timberlink will manufacture cross-laminated timber (CLT) and glue-laminated timber (GLT) products, providing an Australian-made renewable and carbon-positive timber building solution for commercial, residential, and public projects.
Shift to Suburbs/Exurbs for New Single-Family Construction Continues, but Urban Areas Are Making a Comeback
According to the Q3 edition of the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI), the shift of single-family construction to suburban areas, brought on by the onset of the COVID-19 pandemic last year, continues unabated. However, the HBGI notes that more urban core markets are in the process of making a comeback. This has occurred as more workers transition back to the workplace.
Commercial/Multifamily Mortgage Delinquencies Decline in 2021 Q3
According to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report (CMDR) that was released on Tuesday (12-7-21), the mortgage delinquency rate on these types of properties declined in 2021 Q3. The CMDR analyzes commercial/multifamily delinquency rates quarterly for five of the largest investor-groups.