It is a quieter time with the Holiday Season upon us. As we reflect on the past year, and plan for 2025, we cannot help but send our heartfelt wishes to those affected by the disasters caused by Hurricane Helene of flooding and destruction in North Carolina and other border states in October. We are saddened by the tragic loss of lives, the loss of homes, and thousands of acres of forest destroyed or damaged. It will be quite some time before affected communities are rebuilt and repaired, and our hearts go out to all the families affected by this disaster.
Lumber contacts noted there are decent order files for green lumber production of Ash, which is mostly going to export markets, and a limited quantity going to domestic end users. In the U.S. border states Ash sales are slow, but export markets are faring better.
Logging and distribution yards stated avoiding Basswood all together as demand is quite low from traditional end users who had used this species as a lower cost and available alternative to other pricier species.
The regionally important species Hard Maple is seeing variable market conditions for the various grades. Some green and kiln-dried FAS are selling well with pricing firm to higher, while other kiln-dried grades of FAS advance in both color classifications. Demand for Number 1 Common is better depending on areas contacted, with similar mixed pricing. Residential hardwood flooring manufacturers are not consuming much Hard Maple at this time.
Soft Maple demand, reported contacts, for upper grades is strong. Even though Sap and Better Number 1 Common business picked up in certain areas it is not great at this time.
Again, demand for Cherry is mostly from China, and demand from this country has also contracted. Prices are pressured for kiln-dried items, but to varying degrees.
Poplar sales are decent commented contacts for both domestic and export sales, and the gap between supply and demand is causing prices to firm.
Contacts commented Hickory is not moving well, and sawmills are curbing production of this species for other items instead. Green Hickory supplies are reported as elevated in some areas compared to market needs.
Export markets, China, Australia and Mexico, are reported to be doing well for kiln-dried Red Oak. On the domestic front and in the U.S. business is moving enough to keep inventories lean.
Green White Oak is more readily available due to reduced log purchasing by barrel stave manufacturers. Available supplies on the market are easing price pressures.
Contacts’ reports about kiln-dried Walnut markets as mixed. Items with premium color selections, lengths, widths, are moving well, while the lower grades are fair.
The federal government introduced a number of measures related to housing in early October, which include measures for homeowners wanting to add a secondary suite, taxing vacant land and building homes in place of underused federal properties.
The first action is changes to how lenders and insurance companies can offer mortgage refinancing for homeowners looking to convert an unused basement or garage into a rental suite.
Homeowners can now refinance their current mortgage and build a secondary suite, with borrowers able to access up to 90 percent of the home’s value, including the value of the extra suite. The borrower will be able to amortize the refinanced mortgage over a period of 30 years.
The federal government also said it is increasing the mortgage insurance home price limit to $2 million for those refinancing to build a secondary suite, saying this will ensure homeowners can access their refinancing in all housing markets across Canada.
“We must use every possible tool to build more homes and make housing affordable for every generation of Canadians,” Deputy Prime Minister and Finance Minister Chrystia Freeland said in a press release.
The second measure announced was the launch of consultations on the taxation of vacant land, a measure which the federal government argues will incentivize landowners to build homes.
“The federal government is seeking feedback from provinces, territories, and municipalities that are interested in implementing their own vacant land taxes,” the press release said.
Finally, Public Services and Procurement Minister Jean-Yves Duclos announced 14 underused federal properties have been deemed suitable for building new homes, bringing the number of total federal properties added to the Canada Public Land Bank to 70. The buildings are located in cities across Canada, including Ottawa, Quebec City, Cape Breton, N.S., and St. John’s, N.L.
Duclos says affordable housing options are out of reach for “far too many Canadians” and that adding these buildings is part of an effort “to unlock public lands for housing at a pace and scale not seen in generations.”
“We are delivering on our promise to continue to add more properties to the land bank and meet the deliverables outlined in Budget 2024 to support a new, ambitious Public Lands for Homes Plan. In doing so, we can build strong communities and more affordable housing across the country.”
These measures are positive for the hardwood industry, as it will lead to added business for the sectors as these homes are built.
We wish you all a very Merry Christmas and a happy, healthy and prosperous New Year!
