Rising interest and mortgage rates will most likely cause economic activity to slow in 2023, painting a pessimistic picture for North American housing and, consequently, lumber markets, forecasts Forest Economic Advisors. This is expected to be short lived, however, with optimism on the horizon the following year. This short-lived downturn in 2023 will be followed by a return to market growth in 2024:

• Residential repair & renovation, however, is expected to take longer to rebound.
• FEA believes the decline in lumber prices is nearing its end.
• Overall demand for softwood lumber in North America will fall 8.3 per cent to a nine-year low in 2023. This will be short-lived, however, with a 7.5 per cent rise forecast in 2024 at 62.5 BBF.
• North American offshore exports will decrease 7.9 per cent in 2023, following a steep 23 per cent drop in 2022.