After hitting a rough patch in Q1 of 2020, confidence in the multifamily housing market continued to grow in Q2 and again in Q3.
Wood Markets News
West Fraser Timber Co. Ltd., to Purchase Norbord Inc. in an All Stock Transaction
West Fraser Timber Co. Ltd., and Norbord Inc., announced today (11/19) that they have entered into a strategic business combination pursuant to which West Fraser, a leading North American diversified wood products company will acquire all of the outstanding common shares of Norbord, the world’s largest OSB producer, in an all-stock transaction valued at approximately C$4.0 billion (US $3.1 billion).
Canfor Sells Forest Tenure in Fort Nelson Area to Peak Renewables
Canfor announced on Tuesday (11/17) that they had reached a multi-year $ 30 million agreement with Peak Renewables involving the sale of the Company’s forest tenure in the Fort Nelson region of B.C. As always, the transactions are subject to customary closing conditions, which include the approval of the B.C. Minister of Forests.
Craigpine Timber Ltd. Sold to Niagara Sawmilling Company Ltd.
Craigpine Timber Ltd., a 98-year old, major Southland New Zealand sawmilling company, owned by the Black family, has agreed to sell their business to Niagara Sawmilling Company Ltd., another local timber processing company.
Leading Economic Indicators in U.S. Continued to Increase in October
The Conference Board Leading Economic Index® (LEI) for the U.S. increased 0.7% in October to a reading of 108.2 (2016 = 100), this following a similar 0.7% increase in September and a 1.6% increase in August.
Existing Home Sales Increase 4.3% Month-Over Month and 26.6% Year-Over-Year in October
The National Association of Realtors® (NAR) has reported that total existing-home sales in October, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3% above September, to a seasonally-adjusted annual rate of 6.85 million in October.
Mortgage Rates Set New Record Lows in the Week Ending 19th November 2020
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending 12th November 2020. The PMMS shows that 30-year fixed-rate mortgage averaged 2.72% with an average 0.7 point, down from last week when it averaged 2.84%.
Weekly Jobless Claims Edge Higher in the Week Ending 14th November 2020
The U.S. Department of Labor is reporting that an additional 742,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday November 14th. An increase of 31,000 from the previous week’s revised level.
Single-Family Homes Built-for-Rent Expands in Q3 2020
A deeper look into the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design, provided by the National Association of Home Builders (NAHB), reveal that the number of single-family homes built-for-rent (SFBFR) posted a year-over-year increase for the Q3 of 2020.
Use of Mass Timber Frames on Upswing in U.S.
While coming late to the game, mass timber frames in the U.S. are on an upswing. Thanks in part to the sustainable material being renewable and recent changes in building codes. According to WoodWorks, a nonprofit technical group that promotes the use of wood in nonresidential and multifamily building, there are 445 engineered wood projects completed or under construction in the U.S. and 534 more in the design process.