U.S. house price growth hit the highest in at least 45 years, and with strong construction demand and a timber supply barrier, timber prices returned to the $1,000 mark on the 9th, the first since mid-June.
Business Insider, Fortune reported that timber prices rose and fell in 2021, peaking at $1,700 per board feet in May, before plummeting 74 percent to $452. Now the price of timber is hot again, rebounding 127% from the August low to $1,069 on the 10th.
But compared to May's highs, timber prices have rebounded by 41 percent, up just 12 percent so far this year.
Timber prices fluctuated sharply due to heavy rains in Canada, a major timber country, and continued tight demand in the US housing market. The CoreLogic House Price Index, the authoritative index of the U.S. housing market, shows that between October 2020 and October 2021, the average price of U.S. homes rose by 18%, the largest increase in CoreLogic's 45-year record.
Still, CoreLogic believes the housing market will cool, citing a slowdown in house price gains, from a 2.3 percent monthly increase at a High in April to a monthly increase of 1.3 percent. For buyers, this means that house prices will be more acceptable in the future. The agency predicts that financial concerns scare buyers off and more listings enter the market, with home prices rising by 2.5 percent between October 2021 and October 2022.
On November 22, the U.S. Association of Realtors (NAR) released data showing that U.S. existing home sales rose 0.8 percent month-on-month in October, the highest increase since January; median home prices rose 13.1 percent from the same period last year to $353,900.
The soaring housing prices in the United States stem from the strong enthusiasm of local people to buy houses. After the outbreak of the epidemic, people have limited travel, and there is more demand for working from home and taking classes remotely. In addition, the main reason for people to buy a house is the ultra-low mortgage interest rate during the epidemic.
The performance of the U.S. property market today is just a microcosm of the global real estate frenzy. Similar to the situation in the United States, there are also countries such as the United Kingdom, Canada, and Australia.
Thanks to new lows in both cash rates and mortgage rates, the median house price in Sydney, Australia, rose 30% in just one year. Similarly, there are the United Kingdom and Canada.
Source: Oh, 21st Century Business Herald