A recently released report from OJO Labs, a Texas-based real estate technology and guidance company, reveals that 40.9% of homes in October sold for more than the list price — a portion that has been steadily declining for the past four months. The percentage of homes selling above list price sat at 42.8% in September, so the decrease, while minor, showed a steady four-month trend of month-over-month decreases.
Wood Markets News
Canadian Industrial Product Price Index Up Month-Over-Month and Year-Over-Year
Statistics Canada (StatsCan) today (11-16-21) released it flash estimates for the October Industrial Product Price Index (IPPI). The IPPI was up 1.3% month-over-month and 16.7% year-over-year. The lumber and other wood products group (+5.4%) was the second largest contributor to the month-over-month gain in the IPPI in October, after posting four consecutive monthly declines.
Canadian Housing Starts Decline Month-Over-Month and Year-Over-Year in October
According to the Canada Mortgage and Housing Corporation (CMHC), the trend in housing starts in Canada was at 264,264 units in October, down from 270.661 units in September. The “trend” measure is a 6-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. In October, the standalone monthly SAAR of housing starts for all areas in Canada was 236,554 units — a decline of -5.3% from 249,922 units in September.
Year-Over-Year New Home Mortgage Applications Decline -15.2% in October
According to the Mortgage Banker Association (MBA) Builder Application Survey (BAS) for October 2021, year-over-year mortgage applications for new home purchases decreased -15.2%. Compared to September 2021, applications increased by 6%. Based on the data from the BAS, the MBA estimates that new single-family homes sales were running at a seasonally adjusted annual rate (SAAR) of 897,000 units in October 2021.
Builder Confidence Increases for Third Consecutive Month in November
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 3 points higher in November to a reading of 83. This marks the third consecutive month of upward movement in the HMI.
Canadian Homes Sales Reach Record Annual High in October 2021
The Canadian Real Estate Association (CREA) reported today (11-15-21) that Canadian homes sales have already set a new annual record in 2021. According to CREA, home sales recorded over Canadian MLS® Systems were up 8.6% between September and October 2021, marking the largest month-over-month increase since July 2020.
Segezha Group Announces Plans to Build Second Glued Laminated Timber Plant in Karelia, Russia
The Segezha Group has announced it plans to build a glued laminated timber plant in Segeza, Republic of Karelia, Russia. The new plant will be located next to the Group’s primary asset in the Republic of Karelia, Segezha Pulp and Paper Mill JSC. The new facility will join the Sokol Woodworking Plant JSC, which is currently the only Segezha Group facility manufacturing glued laminated timber.
Hancock Natural Resources Group Renamed Manulife Investment Management Timberland and Agriculture Inc.
Manulife Investment Management, a diverse private markets business, which includes timberland and agriculture, has announced that Hancock Natural Resource Group Inc has changed its name to Manulife Investment Management Timberland and Agriculture Inc effective today (11-15-21). The change completes the transition of all Manulife Investment Management private markets’ capabilities.
Softwood Lumber Board Announces $420K to Match Wood Innovation Grants
The Softwood Lumber Board (SLB) has announced that in 2022, it will provide funding matches for projects under the Wood Innovation Grant Program (WIGP). In 2021, the SLB provided funding matches for three projects under the Wood Innovations Grant Program, each exploring new potential for wood products.
Minster of Forestry Urges Builders to “Think Timber” in the Construction of Ireland’s Homes
The Republic of Ireland’s Senator Pippa Hackett, the Minister of State with responsibility for Forestry, wants to see timber playing a ‘big part’ in the future of construction of Ireland’s homes. The senator made the comments as she launched a series of statements by the National Council for Forest Research and Development (COFORD).