Langstaff Gateway Condos project . How does the shortage of cork affect the supply of house prices? When COVID-19 first began to disrupt business in Canada in March, the real estate industry was expected to come to a standstill.Please Visit: Langstaff Gateway Condos project to Get Your VVIP Registration Today!
No one will buy, no one will lend, no one will build. For better or worse, none of these predictions will come true. Although lenders, real estate agents, mortgage brokers and sellers were excited by the unexpected changes, builders and buyers of new products had to sit down and watch wood prices soar.
Kevin Lee, CEO of the Canadian Association of Home Builders, said: “COVID has affected the operational capabilities and efficiency of the entire supply chain, from logging operations, factories and transportation systems to suppliers and retailers.” “Public health requirements and persistent labour shortages continue to affect operations as the industry tries to catch up.”
With the closure of lumber mills, construction is considered an essential service and Canadians stop working at home for a large number of renovation activities, resulting in an imbalance between supply and demand and rising prices, which is unprecedented in North American timber. Space.
Since the beginning of the epidemic, “the price of wood has been doubling.” Said Richard Lyle, chairman of the Ontario Housing Construction Commission.
Lyall explained that at the beginning of the pandemic, Canadian lumber mills were operating under safe assumptions-a construction pause would slow demand, while COVID-19 would be a relatively short-term problem. It is speculated that the temporary decline in production will be offset by a more pronounced decline in demand. But the decline in supply that began with the closure of some of Quebec’s most important steel mills is the only formula that can be achieved. In the construction industry in Canada and the United States, tariffs on cork wood have had no impact on curbing Canada’s demand for Canadian wood.