The University of Michigan today (Friday 7-16-21) released its preliminary Consumer Sentiment Index (CSI) for July. Concerns about rising prices has led to a sharp drop in buying conditions for ‘big-ticket’ items and resulted in the decline. The CSI fell to a five-month low to a reading of 80.8 from 85.5 in June. Consumers expect inflation to rise 4.8% over the next year, the highest since August 2008.
Wood Markets News
Canadian Homes Sales Decline for Third Consecutive Month in June
Data released today (7-15-21) by the Canadian Real Estate Association (CREA) reports that Canadian national home sale decreased -8.4% between May and June 2021. This marks the third straight monthly decline since activity hit an all-time record in March 2021. While sales are now down a cumulative -25% from their peak, and below every other month in the last year, June transactions still managed to set a record for that month.
Setra Group Announces Investment in New Saw Line for Small Diameter Logs at their Skinnskatteberg Mill
Setra Group, one of Sweden’s largest wood products companies with eight sawmills and three processing plants, announced on Tuesday (7-13-21) that they were investing in a new saw line for small diameter logs at their facility in Skinnskatteberg. The investment will provide major efficiency improvement and increase resource utilization.
Remodeler Confidence Continued to Grow in Q2 2021
The National Association of Home Builders (NAHB) today (7-15-21) released their Remodeling Market Index (RMI) for Q2 2021. The RMI posted a reading of 87, up 14 points from Q2 of 2020 and a sign of remodelers increasing confidence in their markets, for all size projects.
Integrated Mass Timber Elements Part of the New Royal BC Museum’s Collection and Research Building
Infrastructure BC has initiated the procurement process for a major building project on Vancouver Island. The new facility will cover approximately 167,000 sq. ft. (15,500 square-meters) and integrate mass timber elements while meeting CleanBC energy efficiency standards.
Mortgage Rates Drop for Third Consecutive Week in the Week Ending July 15, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending July 15, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.88% with an average 0.7 point, down from last week when it averaged 2.90%. A year ago, at this time, the 30-year FRM averaged 2.98%.
Weekly Jobless Claims Continued to Decline in the Week Ending July 10, 2021
The U.S. Department of Labor is reporting that an additional 360,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, July 10, 2021 — a decrease of 26,000 from the previous week’s revised level and the lowest level for initial claims since March 14, 2020.
Wildfire Burning in the Fremont-Winema National Forest — Currently Largest in the U.S.
According to the National Interagency Fire Center (NIFC), more than 14,000 firefighters and support personnel are attacking fires covering close to a million acres of land. The NIFC is reporting that the largest fire in the United States was incinerating huge swaths of the Fremont-Winema National Forest in southern Oregon.
Associated Builders and Contractors Reports Construction Backlog Indicator Increased to 8.5 Months in June
Associated Builders and Contractors (ABC) reported on Tuesday (7-13-21) that according to its latest ABC member survey conducted between June 20 and July 6, 2021, its Construction Backlog Indicator (CBI) rose to 8.5 months for June. The latest report is 0.5 months higher than the May 2021 report and 0.4 months higher than in June 2020.
Bidding Wars Slow as More Available Homes Hit the Market
According to a recently released report from Redfin, the Seattle-based technology-powered real estate brokerage, the number of offers written by their agents that faced competition declined from 72.1% in May to 65% in June — well below the pandemic peak of 74.1% in April of this year. Nonetheless, that is higher than the 56.6% bidding war rate Redfin saw in June 2020.