Lumber company Weyerhaeuser banking on a strong real estate market, CEO states

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Lumber firm Weyerhaeuser betting on a strong housing market, CEO says

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Weyerhaeuser CEO Devin Stockfish informed CNBC’s Jim Cramer on Friday the lumber business thinks the U.S. real estate market will stay strong for several years ahead, even after the pandemic assisted sustain a rise in homebuying.

“First and foremost, it all goes back to the level of underbuilding that we’ve been doing in the U.S., really going back to the last Great Recession,” Stockfish stated, describing the market’s traditionally low real estate output.

Seattle- based Weyerhaeuser, which owns or manages 11 million acres of forest in America, makes lumber items that are necessary in developing houses, offering Stockfish insights into market conditions both currently and in the future.

“When you think about normalized housing over any historical period, really coming out of ’08, ’09, 2010, we’ve really been building well below that level for a significant amount of time. … We think there’s a lot of pent-up demand,” the executive stated in a “Mad Money” interview.

The real estate market warmed up significantly throughout the Covid pandemic, and the sharp increase in house costs sustained some issues that another bubble was forming or, a minimum of, that a significant downturn was on the opposite.

While just recently there have actually been some indications of cooling, Stockfish stated group patterns will assist support the marketplace over the next years. Specifically, he indicated the wave of millennials who are reaching phases of their life when homebuying ends up being a concern.

Stockfish stated that reality, integrated with the underbuilding, “gives us a lot of confidence that we’re going to have to build a lot of homes here over the next five or 10 years to house the demand level that we have here in the U.S.”