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Tag: madisons lumber reporter

US House Prices vs Price-to-Rent Ratio: June 2020

US House Prices vs Price-to-Rent Ratio: June 2020

Case-Shiller: National House Price Index increased +4.3% year-over-year in June As an example, if a house price was US$200,000 in January 2000, the price would be close to US$289,000 today adjusted for inflation (+45%).  That is why this graph is important – this shows “real” prices (adjusted for inflation). In real terms, US house prices are at 2004/2005 levels. An excellent indicator of future US home building and sales activity is the Price-to-Rent Ratio In the latest Case-Shiller release, the seasonally…

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Madison’s Western S-P-F Softwood Lumber Prices Aug 28: sneak preview

Madison’s Western S-P-F Softwood Lumber Prices Aug 28: sneak preview

Here is a SNEAK PEAK at tomorrow’s print benchmark Western Spruce-Pine-Fir (WSPF) softwood lumber prices: “Madison’s is starting to run out of adjectives for how unknown the softwood lumber market is right now, as prices increase by never-before-seen increments to unprecedented highs.” — Madison’s Lumber Reporter This week prices rose by less than last week, but are still up by an extremely large degree of $90. Market conditions, in particular demand, point to continuing momentum for unprecedented high prices to…

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Madison’s North America Heating Wood Pellet prices: Aug 2020

Madison’s North America Heating Wood Pellet prices: Aug 2020

More Funding for Canadian and US Cellulose Biomass Fuel Projects North Dakota Power Provider Gets Biomass-Conversion Research Funding The Blue Flint ethanol power plant near Underwood, ND, recently received a US$155,000 grant to research and determine the feasibility of converting the 70 MMgy ethanol unit to biomass. Blue Flint currently sources water and steam from Great River Energy’s Coal Creek Station, a 1,100 MW coal-fired power plant, which Great River recently announced will be retired in the second half of…

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Madison’s BC Coast Log Prices: August 2020

Madison’s BC Coast Log Prices: August 2020

Madison’s North America Lumber and Sawmill Update: May 2020 Sawmill Capacity Utilization Rates The vast majority of logs sold, in British Columbia and elsewhere in Canada, go to the sawmilling industry for lumber production. It’s very interesting to watch the trend of log prices as a result of this latest lumber price volatility: US sawmill production as per cent of practical capacity for January to May 2020 dropped slightly, down by -1%, to 83%, compared to 84% in the first…

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US New Home Prices: July 2020

US New Home Prices: July 2020

The median sales price of new houses sold in July 2020 was US$330,600. The average sales price was US$391,300 Very few new homes sold were under US$150,000 in April 2020.  This is down from 30% in 2002.  In general, the stock of homes for sale under US$150,000 bracket is going away.     The surge in sales was driven by a nearly +59% increase in the Midwest month-over-month. Sales also increased on a monthly basis in the South and the West, but…

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Softwood Lumber Prices Continue Rising as US Home Building, Sales, and Prices Increase Sharply

Softwood Lumber Prices Continue Rising as US Home Building, Sales, and Prices Increase Sharply

Madison’s Lumber Reporter advises North American forest products manufacturers to put on their seatbelts, as the latest housing market data indicates no stop to relentlessly rising softwood lumber prices any time soon. Currently, sawmills in Canada and the US simply can not keep up with ongoing very strong demand for house construction in both countries. While some builders and contractors are beginning to hold off on projects in anticipation of the usual autumn slow-down in demand for building materials, others…

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US Existing Home Sales: July 2020

US Existing Home Sales: July 2020

Earlier this month very strong US housing starts data surprised everyone: Single-family housing starts in the US for July 2020 were at a rate of 983,000, as in June up +17%. The number of residential projects authorized but not yet started also advanced, to 101,000 units in July, the biggest backlog since the end of 2018. Single-family construction rose by more than +8% and single-family permits increased +17% to a 983,000 rate, the strongest since February. In the latest news,…

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Madison’s Western S-P-F Softwood Lumber Prices Aug 21: sneak preview

Madison’s Western S-P-F Softwood Lumber Prices Aug 21: sneak preview

Here is a SNEAK PEAK at tomorrow’s print benchmark Western Spruce-Pine-Fir (WSPF) softwood lumber prices: “In a single week, softwood lumber prices increase by almost half the total price of recent lows.” — Madison’s Lumber Reporter In September 2015, the “recent-low” of lumber prices, benchmark commodity Western S-P-F KD 2x4s were selling for US$249 mfbm … this week that price has INCREASED by an unbelievable $104. Even the most veteran players are stunned by this latest development.Advancing by levels previously…

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US Housing Starts & Softwood Lumber Prices: July and August 2020

US Housing Starts & Softwood Lumber Prices: July and August 2020

Single-family housing starts in the US for July 2020 were at a rate of 983,000, as in June up +17%. The number of residential projects authorized but not yet started also advanced, to 101,000 units in July, the biggest backlog since the end of 2018. For the week ending August 14, 2020, prices of standard construction framing dimension softwood lumber items shot up yet again. Benchmark softwood lumber item Western S-P-F 2×4 #2&Btr KD price increased a mind-boggling +80, or…

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A late wildfire season hits British Columbia’s sawmill country hard

A late wildfire season hits British Columbia’s sawmill country hard

Lightening strikes cause several fires across BC’s southern interior but heavy rain is expected tomorrow: Normally the BC government would have put in the fire ban by this time of late-summer (no heavy equipment in the forest to prevent sparking a fire). Due to that the sawmills stock up with logs well in advance of a stop to logging activity and this year is no different.However, after a wet June and bits of July, the weather has been very dry…

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