Housing Update

Virginia Tech housing commentary June 2024

By Dakota Smith

August 16, 2024 | 10:03 am CDT

BLACKSBURG, Va. — The June 2024 housing report is a free service of Virginia Tech, Virginia Cooperative Extension, and the U.S. Forest Service. 

Housing data, month-over-month and year-over-year, were mostly negative. On a month-over-month
Based on total and multi-family starts, total and multi-family permits, and housing completions, the results were positive.

Year-over-year, single-family starts, total and single-family completions, and total and single-family
construction spending was positive. The influence of increased mortgage rates is evident, as aggregate
costs have decreased affordability and the “lock-in” effect has obfuscated sales. New and existing house
sales continued their respective declines.

The August 15th Atlanta Fed GDPNow total residential investment spending forecast is -1.5% for Q3
2024. Quarterly log change for new private permanent site expenditures was projected at -6.1%; the
improvement spending forecast was -1.7%; and the manufactured/mobile home expenditures projection
was 5.1% (all: quarterly log change and at a seasonally adjusted annual rate).

“North American lumber markets over the near term are expected to remain depressed as the economy continues to adjust to inflationary pressures, elevated interest rates, labor shortages, and geo-political uncertainty, and as industry-wide lumber production continues to adjust to match demand,” says  Richard Pozzebon, executive vice president and CEO; Interfor Corporation. “Interfor expects that lumber markets will continue to benefit over the mid-term from favorable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing, and various demographic factors. At the same time, growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines, labor availability, and constrained global fiber availability.”

To read the full report, visit woodproducts.sbio

https://www.woodworkingnetwork.com/news/woodworking-industry-news/virginia-tech-housing-commentary-june-2024