Increased demand for lumber products in New Zealand has led to a national supply shortage. As such, both Kiwi Lumber sawmill and WET Gisborne Ltd., are experiencing greater demand for their finished products. In response to that demand, both companies are taking proactive steps to increase their production.
Wood Markets News
British Energy Company Drax Completes Purchase of Pinnacle Renewable Energy
British energy company Drax, which owns the world’s largest biomass power station, located in the United Kingdom and wood pellet mills in the southern United States, has announced that purchase of wood pellet producer Pinnacle Renewable Energy, originally announced in late February 2021, has been officially completed.
Element 5’s St. Thomas Ontario Plant Receives International Production Certificate
Element 5, Ontario’s only cross-laminated timber (CLT) manufacturer has announced that its new factory in St. Thomas, Ont., has achieved international recognition as a certified CLT manufacturer. A recent statement from Element 5 explained that the plant has received certification from PFS TECO of Cottage Grove, Wis. for the production of CLT under the ANSI/APA PRG 320-2019 Standard for Performance-Rated Cross-Laminated Timber.
Mortgage Applications Decline for Sixth Consecutive Week in the Week Ending April 9, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending April 9, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -3.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -3% compared with the previous week.
The Province of British Columbia to Fund 12 Mass Timber Demonstration and Research Projects
The Province of British Columbia has announced that it is funding 12 mass timber demonstration and research projects and has established a new advisory council to accelerate the adoption of mass timber building systems, as part of the Province’s economic recovery.
Mass Timber Construction and Technology to Merge in New Mass-Timber Office Building in Vancouver, BC
Texas-based Hines, a privately owned global real estate investment firm founded in 1957 with a
presence in 25 countries, has linked with PC Urban of Vancouver to build the largest and tallest mass-timber office building in Western Canada.
Homes Continue to Sell in Record Time and at a Record Price, But Are We Near the Peak?
Redfin, the Seattle-based, technology powered real estate brokerage is reporting that for the 4-week period ending on April 4, 2021, the median home-sale price has increased year-over-year (y-o-y) 17% to $338,225, setting yet another new all-time record high. The asking prices of newly listed homes rose 16% y-o-y, to $ 351,851, an all-time high, but were flat from the four-week period ending March 28, 2021.
Shares of Mortgages in Forbearance Decline for Sixth Straight Week in Week Ending April 4, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 24 basis points from 4.90% of servicers’ portfolio volume in the prior week to 4.66% as of April 4, 2021. According to MBA’s estimate, 2.3 million homeowners are in forbearance plans.
Consumer Price Index for All Urban Consumers Increased Year-Over-Year 2.6% and 0.6% in March
The Bureau of Labor Statistics (BLS) is reporting that the Consumer Price Index (CPI) for All Urban Consumers (CPI-U) increased 0.6% in March, on a seasonally adjusted basis, after rising 0.4% in February and 0.3% in January.
Small Business Optimism Index Increases in March
The National Federation of Independent Business (NFIB), one of the largest small business associations in the U.S., is reporting that their NFIB Small Business Optimism Index rose 2.4 points in March to a reading of 98.2. March’s reading is the first return to the historical reading since last November.