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Here’s a daily helping of fresh Canadian mortgage news (the italics are the Spy’s 2 cents):
- How higher rates affect your mortgage renewal (RATESDOTCA)
- There’s a fair chance that many who got record-low 5-year fixed rates in the last 9 months will see their payments rise at maturity.
- They’re renewing a mortgage – should they go fixed or variable? (The Globe & Mail)
- Carrick votes fixed, a logical choice for most assuming the chosen lender doesn’t impose ridic prepayment penalties.
- In Toronto real estate, new highs every week (The Globe & Mail)
- Under-pricing to spark a bidding war can backfire, says realtor.
- Scotia’s global markets chief sees role for banks in Canada housing crunch (BNN Bloomberg)
- Canada’s third-largest bank writes a big cheque to help finance affordable housing supply.
- North American lumber prices go through the roof (BIV)
- It’s causing many to buy up land and build on it now, in case building costs soar further.
4 Comments
The price of lumber will come back down as mills are reopened across the country.
https://www.cbc.ca/news/canada/thunder-bay/ignace-ontario-sawmill-reopen-1.5871484
Unfortunately I don’t expect housing supply to respond to increased demand in the same way.
Agreed on the housing supply response Ralph, if/when building costs do drop.
I have to disagree with the cost of lumber coming down any time soon. Lots of mills across the country have already reopened and the price keeps climbing. They are reopening to take advantage of the mass profitability at this time. The only way lumber goes down is if rates go up and in turn the housing market cools. In turn I’d be surprised if it ever gets back below $600 per 1000 board feet again. Just my opinion though. As for someone that is building a house this year I would love greatly to be wrong on this one
Here in NS, local mills are paying about $80/t delivered for spruce/fir stud lumber. It typically takes 4.5-5t to make 1MBF, which, in turn, produces 286 8′ 2×4’s. That’s C$380/MBF and 133c per 2×4.
http://hchaynesnovascotiaprices.blogspot.com/