According to the latest Fannie Mae Home Purchase Sentiment Index® (HPSI), only 35% of consumers believe now is a good time to buy a home. The HPSI increased by 1.0 points in May to a reading of 80.0. Four of the six HPSI’s components increased month-over-month, most notably the components related to personal finance, as consumers reported a much greater sense of job security and improved household income compared to the same time last year.
Wood Markets News
Construction Sector Employment Declines by 20,000 in May
A deeper dive into the U.S. Bureau of Labor Statistics (BLS) total nonfarm payroll employment report for May, with an emphasis on the construction sector, reveals that total nonfarm payroll increased by 559,000 and the unemployment rate declined by -0.3 point to 5.8% percent. However, employment in the overall construction sector declined by -20,000 in May, following a revised decrease of 5,000 jobs in April.
San Group Announces $ 100 Million Investment in Port Alberni Forestry Operations
On Wednesday, June 3, 2021, San Group announced that over the next year it plans to invest $100 million (CAD) into its Port Alberni forestry operations. There are four projects that will receive money from the investment. The largest portion of the investment of $50-60 million is part of an agreement to ship lumber via container ships from the city’s deep seaport.
Brazilian Exports of Wood-Based Products Increased 57.5% Year-Over-Year in April 2021
According to the International Tropical Timber Organization (ITTO), the value of Brazilian exports of wood-based products (except pulp and paper) in April 2021 amounted to US$376.4 million — an increase of 57.5% when compared to April 2020, when they were valued at US$238.9 million.
Town of Ashland, Maine to Invest in Environmentally Sustainable Wood Building Product Manufacturing
The town of Ashland Maine recently joined a new initiative that has as its goal to begin investing in a more environmentally sustainable wood building product. Original Mass Timber Maine is a three-year market development program with the goal of opening at least one facility to manufacture original mass timber, also known as structural round timber (SRT), within the next two years.
Nonfarm Payroll Employment Numbers Up as Unemployment Continues to Decline in May 2021
The U.S. Bureau of Labor Statistics (BLS) is reporting that total nonfarm payroll employment increased by 559,000 in May, following a disappointing increase of 278,999 in April and a surge in March of 785,000. In May, nonfarm payroll employment is down by 7.6 million, or -5.0% from its pre-pandemic level in February 2020.
Canadian Employment Numbers Decline for Second Month in a Row as Third Wave of Restrictions are Implemented
Statistics Canada (StatsCan) is reporting that Canadian employment fell by 68,000 (-0.4%) in May, adding to a decline of 207,000 in April. The unemployment rate was little changed at 8.2%.
B.C. Provincial Government says Redistribution of B.C. Forest Licenses Remains its Long-Term Goal
When Canfor Corp. closed its Vavenby sawmill in 2019, due to the shrinking timber supply, and sold the cutting rights to Interfor for $ 60 million, B.C.’s NDP government had its first chance to use its new authority to intervene in long-term corporate forest tenures…
Mortgage Rates Move Up Slightly but Stay Below 3% in the Week Ending June 3, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending May 27, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.99% with an average 0.6 point, up from last week when it averaged 2.95%. A year ago at this time, the 30-year FRM averaged 3.18%.
Repair & Remodel Opportunities Grow as U.S. Owner-Occupied Housing Stock Continues to Age
According to the latest data analysis from the 2019 American Community Survey, the average median age of an owner-occupied home is now 39 years old. In 2005, the median age was 31 years. Clearly, the U.S. owner-occupied housing stock is aging gradually.