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.
Wood Markets News
Skyrocketing Lumber and Panel Costs Have Failed to Trickle Down to Forest Landowners
A Federal Reserve Board report reveals that the price index of lumber and wood products almost doubled from April 2020 to February 2021 — the sharpest rise since 1946, when the post-World War II housing boom kicked in. Any trip to your local lumber store will confirm that prices are spiking.
Rayonier Advance Materials Announces the Sale of its Lumber and Newsprint Facilities to GreenFirst Forest Products
Rayonier Advance Materials (RYAM), a global leader in high purity cellulose pulp, and GreenFirst Forest Products Inc. (GreenFirst), a Canadian lumber company, announced today that the parties have entered into a binding asset purchase agreement in which RYAM has agreed to sell all of its six lumber and one newsprint facilities and related assets located in Ontario and Quebec to GreenFirst for an expected purchase price of approximately $214 million (USD), including inventory on hand at the time of closing, which will be payable in approximately 85% cash, 15% common shares of capital GreenFirst.
Residential Construction Investment in Canada Sets New Record High Level in February
Statistics Canada (StatsCan) is reporting that record levels have been reported for investment in residential construction since September 2020, and they reached a new record high of $12.3 billion in February 2021. A majority of the growth is coming from single-family home construction, which rose for a fifth consecutive month, up 9.4% to $6.7 billion in February.
Available Homes For Sale Inventory Drops to New Record Low Levels in March
According to HouseCanary’s latest Market Pulse Report (MPR), homes for sale listings volume are down -11.5% year-over-year. In the month of March 2021, 284,298 net new listings were placed on the market, a -0.9% decrease over March 2020. In addition, there were 348,422 listings that went under contract nationwide, which is a 22.7% increase versus March 2020.
Construction Input Prices Climb Higher in March
Further analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data, provided by the Associated Builders and Contractors (ABC), reveals that construction and nonresidential construction input prices rose 3.5% in March 2021. Construction input prices are 12.9% higher than in March 2020, and nonresidential construction input prices are up 12.4% during that same span.
Weyerhaeuser to Restore Wildfire Destroyed Forest Lands, Use 1980 Mt. St. Helen Plan
The destruction left in the path of last year’s Oregon fire season is slowly coming into focus. Last September more than a million acres burned, destroying many homes and in some place entire communities across much of western Oregon. Weyerhaeuser timberlands were impacted by several of the fires, including approximately 125,000 acres that need to be replanted.
Producer Price Index Increased 1% in March 2021
The U.S. Bureau of Labor Statistics (BLS) is reporting that the Producer Price Index (PPI) for final demand, seasonally adjusted increased 1.0% in March. Final demand prices rose 0.5% in February and 1.3% in January.
B.C. Premier John Horgan Warns Forestry Industry of Possible Government Tenure Take Back
In a keynote address on Thursday (4-8-21) at the virtual Council of Forest Industries (COFI) conference, British Columbia’s Premier John Horgan addressed the ongoing timber shortage in the province. “There is too little fiber, and we need to do something about that,” Horgan said.
Mortgage Credit Availability Increased in March
According to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) that analyzes date from the Ellie Mae’s AllRegs® Market Clarity® business information tool, mortgage credit availability increased in March.