Further analysis of the U.S. Census Bureau’s Construction Spending data for January 2021, provided by the National Association of Home Builders (NAHB), reveals that total private residential construction spending rose 2.5% in January to a seasonally adjusted annual rate of $713 billion, reaching a new record high.
Wood Markets News
Real GDP in Canada Increased 2.3% in Q4 2020 with Housing Investments Helping to Lead the Way
Statistic Canada (StatsCan) is reporting that real gross domestic product (GDP) grew 2.3% in Q4 of 2020, following record fluctuations in the previous two quarters. In 2020, real GDP shrank -5.4%, the steepest annual decline since quarterly data were first recorded in 1961.
Australia’s February Home Prices Increase at a Pace Last Seen in August 2003
CoreLogic is reporting that Australian homes prices in February 2021, rose at a pace not seen since August of 2003. As government incentives and record low borrowing rates drew more buyers into the housing market and raised concerns about them overheating. The CoreLogic data showed national home prices rose 2.1% in February, from January when they added 0.9%.
China Extends Tariff Exemptions on Hardwood Logs and Lumber Products
In a note to its members, the National Hardwood Lumber Association reports that China has agreed to extend tariff exemptions on 65 imported products from the United States. Seven hardwood log and lumber products have made that list.
COVID-19 Vaccine Distribution Will Add to the Number of Homebuyers
Zillow, the Seattle-based online real estate marketplace company, is reporting in a new survey that a large majority (70%) of homeowners say they would be comfortable moving into a new home after widespread COVID-19 vaccine distribution — a significant increase from the 52% in the previous survey.
Shares of Mortgages in Forbearance Increase in Week Ending February 21, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance increased by 1 basis point from 5.22% of servicers’ portfolio volume in the prior week to 5.23% as of February 21, 2021.
Pandemic Shifted Home Building in 2020 to the Suburbs, Exurbs and Small Metro Areas
The National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) is reporting that the shift to suburban home building — which was first reported in Q2 2020 — is the result of buyers’ growing preferences to live in lower density, lower cost markets and the results of the impact of the COVID-19 pandemic, continued through the balance of 2020.
James Jones & Sons Ltd Announces Purchase of GT Timber Ltd
James Jones & Sons Ltd, the UK’s largest privately owned sawmill, timber engineering and pallet manufacturing company, has announced the purchase of GT Timber Ltd, the holding company of Taylormade Timber Products Ltd and Kerr Timber Products Ltd which operate sawmill facilities at Sherburn Hill, Durham and Annan.
Timber Begins Shipping from Kangaroo Island Even While the Smith Bay Port Project Remains in Limbo
The window of opportunity for salvaging and shipping timber impacted by last year’s Australian bushfires is quickly approaching. Kangaroo Island Plantation Timber (KIPT) needs to move both fresh and damaged crop off the island and to the mainland.
Construction Spending Up 1.7 % Month-Over Month and 5.8% Year-Over-Year
The U.S. Census Bureau has announced that total construction spending during January 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,521.5 billion, 1.70 above the revised Decembre estimate of $1,496.5 billion.