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.
Wood Markets News
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.
Weekly Jobless Claims Decline in the Week Ending December 11, 2021
The U.S. Department of Labor is reporting that an additional 206,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, December 11, 2021. This is an increase of 18,000 from the previous week’s revised level. The 4-week moving average was 203,750 — a decrease of 16,000 from the previous week’s revised average.
PacBio to Close Wood Pellet Plant in Prince George, BC
Pacific BioEnergy Corporation (PacBio) announced today (12-15-21) that it intends to permanently close their wood pellet plant located in Prince George, B.C. The company says that after satisfying certain closing conditions, which is expected by the end of 2021, certain assets owned by PacBio will be assigned to Pinnacle Renewable Energy Inc. (part of the Drax Group).
Canadian Housing Starts Push Higher in November
According to the Canadian Mortgage and Housing Corporation (CMHC), the trend in housing starts was 267,365 units in November, up from 264,583 units in October. This trend measures a six-month moving average of the monthly seasonally adjusted rates of housing starts in Canada. The standalone monthly SAAR of housing starts for all areas in Canada was 301,279 units in November, an increase of 26% from 238,366 units in October.
Builder Sentiment Ends Year on a High Note
On Wednesday (12-15-21), The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes edged 1-point higher in December to a reading of 84. This marks the fourth consecutive upward movement in the HMI and ties year’s highest reading (February).