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Report
from
North America
Increase in US home sales and starts
Sales of new homes bounced back in November 2010. Sales increased by
5.5% from October to November, according to US Department of Commerce
figures. The US South and West accounted for much of increase, while
sales in the Northeast and Midwest declined. The inventory of new homes
on the market has fallen to below 200,000 units for the first time in 42
years. The National Association of Home Builders is concerned that the
lack of financing for construction will result in a very tight market
when demand for new homes improves this spring.
Housing starts increased slightly in November to 555,000 (seasonally
adjusted rate), up 3.9% from October according to the latest data from
the US Department of Commerce. Multi-family housing starts declined by
9.1% from October while single family starts increased by 6.9%. The
number of building permits authorised in November fell by 4% from the
previous month due to a large decline in permits for apartments. The
number of permits issued can be an indicator of future building
activity.
Unemployment dropped to 9.4% in December 2010, the lowest rate in 19
months. However, this drop includes people who have stopped looking for
work. Given the strengthening economy, many analysts expected a stronger
increase in employment. Ben Bernanke, Chairman of the Federal Reserve,
reported to the US Congress on 7 January that it could take four to five
years before the unemployment rate drops to the usual rate of around 6%.
Canadian housing starts have moderated
While housing starts in Canada have recovered well from the impact of
the recession, the number of new starts declined towards the end of
2010. Canada¡¯s unemployment rate held steady in December at 7.6%.
Compared to December 2009, employment increased by 2.2%. The Canada
Mortgage and Housing Corporation forecasts slightly improving housing
starts in 2011 compared to 2010. Little change is expected in the main
drivers of home construction in 2011, namely the economy, mortgage rates
and immigration.
McGraw-Hill redicts 25% growth in single family housing starts in 2011
The 2011 Construction Outlook report by McGraw-Hill predicts a
significant rebound in almost all construction markets in the US. Single
family housing is expected to increase by 27% in value and 25% in the
number of units built from 2010 levels. Multi-family housing is forecast
to grow by 24% in value and 23% in the number of units built. Commercial
building construction is predicted to grow by 16%, but the level of
activity will still be below normal for hotels and offices.
Institutional buildings are expected to decline by 1% from 2010 because
there are few public funds to build schools.
Upswing in home renovation spending expected for 2011
2011 may see strong growth in homeowner improvement spending according
to data collected for the Leading Indicator of Remodeling Activity by
the Joint Center for Housing Studies at Harvard University. Based on the
indicator, spending on home renovations could increase by more than 10%
in the first half of 2011. As housing prices stabilise and consumer
confidence improve, homeowners are more likely to invest in their homes
and carry out deferred replacements and repairs.
CARB revises dates to sell non-compliant composite wood products
The California Air Resources Board (CARB) has released a guidance on 6
January that clarifies and revises some of the dates until when
composite wood products must be sold that do not comply with current
formaldehyde emission standards. California introduced formaldehyde
emission standards for hardwood plywood, particleboard, and medium
density fiberboard in 2007. The first emission standards became
effective on 1 January 2009. Principally, all composite wood products
and finished goods sold, offered for sale, supplied, used, or
manufactured for sale in California after 1 January 2009, must comply
with the applicable emission standards. However, the guidance extends
the allowable sell through of some of the products manufactured prior to
2009. The full guidance for manufacturers, importers, distributors,
fabricators and retailers of composite wood products and finished goods
is available here:
http://www.arb.ca.gov/toxics/compwood/compwood.htm
BKB Hevea Flooring Products from Malaysia expands into US market
Malaysian BKB Hevea Flooring Products announced that their
cost-effective engineered hardwood flooring products are now imported
into the US. The flooring is made of a hevea (rubberwood) core, a
hardwood top layer and a softwood veneer back. FSC-certified flooring
will be available in the North American markets.
Canadian company to log submerged hardwoods in Ghana
Ghana¡¯s parliament has ratified an agreement that will allow Canadian
Triton Logging to log the submerged timber in the Volta Lake reservoir.
The reservoir was created for a hydroelectric plant in 1965. Triton
Logging¡¯s subsidiary Clark Sustainable Resource Developments Limited
will have exclusive rights to 350,000 hectares of the reservoir. The
company intends to sell the timber on domestic and international
markets.
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