Housing

March 2, 2021

Trends in the global lumber market in 2021

The strong North American lumber demand at the end of 2020 has continued at the beginning of 2021, and is expected to continue into the first half of 2021, mainly due to the increase in housing affordability, the reduction of housing inventory and the aging of housing inventory. In fact, the continuation of the COVID-19 pandemic will significantly affect and change the consumption habits of consumers, and the favorable demographic structure of millennials entering the golden year of buying houses will also promote strong growth in timber demand. It is estimated that the U.S. housing starts in the first quarter of 2021 will exceed the established level in 2020. It is expected that North American lumber demand will be further supported by the continued high level of maintenance and renovation activities, and the increase in sales of existing homes is expected to boost expenditures in... Continue reading →

January 22, 2023

Builder confidence uptick signals turning point for the US housing market

 A new report from the National Association of Home Builders found a modest drop in interest rates helped to end a string of 12 straight monthly declines in builder confidence levels, although sentiment remains in bearish territory as builders continue to grapple with elevated construction costs, building material supply chain disruptions and challenging affordability conditions. Builder confidence in the market for newly built single-family homes in January rose four points to 35, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released Jan. 18. “It appears the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales,” said NAHB Chairman Jerry Konter, a home builder and developer from Savannah, Ga.... Continue reading →

March 2, 2021

Trends in the global lumber market in 2021

The strong North American lumber demand at the end of 2020 has continued at the beginning of 2021, and is expected to continue into the first half of 2021, mainly due to the increase in housing affordability, the reduction of housing inventory and the aging of housing inventory. In fact, the continuation of the COVID-19 pandemic will significantly affect and change the consumption habits of consumers, and the favorable demographic structure of millennials entering the golden year of buying houses will also promote strong growth in timber demand. It is estimated that the U.S. housing starts in the first quarter of 2021 will exceed the established level in 2020. It is expected that North American lumber demand will be further supported by the continued high level of maintenance and renovation activities, and the increase in sales of existing homes is expected to boost expenditures in... Continue reading →

June 30, 2021

Lumber shortage also in Russia caused by skyrocketing prices

The Russian housing market is experiencing a shortage of 2-2.5 million m³ of lumber. Experts emphasize that this volume is equal to about 30-40% of annual consumption.  The development of the trend became the driver of the growth of prices for lumber, only in June 2021 they continued by 32%. According to Russia's Association of Wooden Housing Construction (ADD), the a surge in the growth of prices for lumber in Russia began to be recorded in the fall of last year. As a result, since the beginning of 2020, the cost of the lumber has tripled, and the cost of a wooden house has increased by 40%. At the same time, the situation developed in the same way in the international markets. In order to minimize the shortage of lumber by 6-8%, according to the ADD, Russia's export supplies should be limited. According to experts, this would allow to leave about 31 million m³ inside the... Continue reading →

March 2, 2021

Trends in the global lumber market in 2021

The strong North American lumber demand at the end of 2020 has continued at the beginning of 2021, and is expected to continue into the first half of 2021, mainly due to the increase in housing affordability, the reduction of housing inventory and the aging of housing inventory. In fact, the continuation of the COVID-19 pandemic will significantly affect and change the consumption habits of consumers, and the favorable demographic structure of millennials entering the golden year of buying houses will also promote strong growth in timber demand. It is estimated that the U.S. housing starts in the first quarter of 2021 will exceed the established level in 2020. It is expected that North American lumber demand will be further supported by the continued high level of maintenance and renovation activities, and the increase in sales of existing homes is expected to boost expenditures in... Continue reading →

January 22, 2023

Builder confidence uptick signals turning point for the US housing market

 A new report from the National Association of Home Builders found a modest drop in interest rates helped to end a string of 12 straight monthly declines in builder confidence levels, although sentiment remains in bearish territory as builders continue to grapple with elevated construction costs, building material supply chain disruptions and challenging affordability conditions. Builder confidence in the market for newly built single-family homes in January rose four points to 35, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released Jan. 18. “It appears the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales,” said NAHB Chairman Jerry Konter, a home builder and developer from Savannah, Ga.... Continue reading →