Eye On Housing
New Home Sales Post Strong February Reading
New home sales were solid in February before challenges associated with the coronavirus set in on the economy. Contracts for new, single-family home sales declined slightly in February by 4% to a 756,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. However, this marked a 14% gain over the February 2019… Read More ›
Recent Posts
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Top Features First-Time Home Buyers Want
After rising for six consecutive years (2010 to 2015), the average home size in the US has fallen steadily for the past four years (2016 to 2019). In fact, estimates indicate the average home built in 2019 was the smallest since 2011. This trend is evidence that builders are working to meet the demand for smaller homes; that they are… Read More ›
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Existing Home Sales Hits 13-Year High in February
Supported by historically low interest rates and rising demand, existing home sales, as reported by the National Association of Realtors (NAR), surged to 13-year high in February after a slight decline in January. Unfortunately, this will mark the high water mark for some time due to virus concerns. Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, rose 6.5%… Read More ›
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Housing Permits Started 2020 Strong
Over the first month of 2020 – and prior to the impact of the coronavirus, the total number of single-family permits issued year-to-date (YTD) nationwide reached 70,386. On a year-over-year (YoY) basis, this is a 21.2% increase over the January 2019 level of 58,086. Year-to-date ending in January, single-family and multifamily permits reported growth across the country. Northeast led in… Read More ›
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Single-Family Starts Strong in February Before March Challenges
According to estimates from the Housing and Urban Development and Commerce Departments, single-family starts expanded in February. Construction activity was accelerated earlier in the year due to warmer weather. Despite the strong start for 2020, significant and rising headwinds exist for housing construction due to coronavirus mitigation efforts. The three-month moving average for single-family construction is currently at a post-recession… Read More ›
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JOLTS Data from the Start of 2020
Given the growing number of economic impacts from mitigation efforts associated with the coronavirus, early 2020 labor market data is of reduced value. However, the data help to describe where the economy was before the shocks of March. January data from the BLS Job Openings and Labor Turnover Survey (JOLTS) indicate that construction job openings posted year-over-year decline at the… Read More ›
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Builder Confidence Declines But Remains Solid Amid Rising Risks
Builder confidence in the market for newly-built single-family homes fell two points to 72 in March, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Sentiment levels have held in a firm range in the low- to mid-70s for the past six months. Builder confidence remains solid, although sales expectations for the next six months… Read More ›
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Household Balance Sheets: 4Q19
The fourth quarter 2019 Financial Accounts of the United States, the Federal Reserve’s flow of funds data, show the aggregate values of households’ assets and liabilities in the nation. Households’ real estate assets totaled $29.3 trillion and liabilities totaled $10.6 trillion, making homeowners’ equity $18.7 trillion or 64% of total household real estate. The data show a continuation of the… Read More ›
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Federal Reserve Provides Stimulus — Including for Housing
Due to the spreading economic damage caused by mitigation efforts to slow the spread of the coronavirus, the Federal Reserve provided an immediate round of monetary policy stimulus. The policy announcement included: A cut in the federal funds rate to a top rate of 0.25% The discount rate was effectively lowered from 1.25% to 0.25% as a means of ensuring… Read More ›
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Building Materials Prices and Supply Chain Routes
Prices paid for goods used in residential construction decreased 0.5% in February (not seasonally adjusted) according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. Building materials prices are just 0.6% higher than they were 12 months ago and have been remarkably stable since then, with an average monthly increase of 0.05%. In fact, the… Read More ›