Eye On Housing
Author Archives
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Fed Raises Funds Rate
As expected, at the conclusion of its September meeting the Federal Reserve’s Open Market Committee raised the short-term federal funds rate 25 basis to a range of 2% to 2.25% . Markets and forecasters are confident that an additional 25 basis point increase will occur in December. The change in monetary policy occurs as the 10-year Treasury rate, which generally moves… Read More ›
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Summer Sales Soft Patch Continues
Contracts for new, single-family home sales increased slightly in August, expanding 3.5% to a 629,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. However, the gain came off downwardly revised estimates for June and July, consistent with the summer soft patch for new and existing home sales. The June reading was revised down from… Read More ›
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Housing Starts Rise in August
Total housing starts posted a gain in August, led by a jump in multifamily production. However, weaker single-family permit data and expected disruption effects from Hurricane Florence will place downward pressure on starts data next month. Total housing starts increased 9.2% in August and are 6.9% higher for 2018 than in 2017 on a year-to-date basis, according to the joint… Read More ›
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Builder Confidence Remains Firm in September
Builder confidence in the market for newly-built single-family homes remained unchanged at a solid 67 reading in September on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Despite rising affordability concerns, builders continue to report firm demand for housing, especially as millennials and other newcomers enter the market. The recent decline in lumber prices from record-high levels… Read More ›
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Construction Job Openings Rise Again in July
The count of unfilled jobs in the construction sector increased in July, reaching yet another post-Great Recession high level. The rate of open construction sector jobs also matched a prior cyclical high. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs increased to 273,000 in July. The prior post-recession high… Read More ›
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Additional Growth for Residential Construction Loans
The volume of residential construction loans increased by 1.7% during the second quarter of 2018, marking 21 consecutive quarters of growth. Furthermore, recent stabilization of year-over-year growth rates is an indicator of continued, modest growth for single-family construction. Tight availability of acquisition, development and construction (AD&C) loans has been a limiting factor for home building growth, but easing credit conditions and a growing loan base have helped expand residential construction… Read More ›
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Multifamily Built-for-Rent Share Remains Elevated
The elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-recession period. As multifamily developers build more for-sale housing units in the years ahead, the average size of multifamily homes is likely to rise. According to second quarter 2018 data, the average per unit square footage of multifamily housing construction starts was 1,139, off from the post-recession… Read More ›
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Single-Family Built-for-Rent Housing Expands
The number of single-family homes built-for-rent increased over the last four quarters. During this time period, construction starts of this type of housing totaled 42,000 homes, compared to 29,000 for the prior four quarters. There were 13,000 single-family built-for-rent starts for the second quarter of 2018. According to data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design and NAHB… Read More ›
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Flat Conditions for Custom Home Building
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building remain flat. There were 50,000 total custom starts for the second quarter of 2018. This was effectively unchanged relative to the second quarter of 2017. Over the last four quarters, ending with the second quarter of 2018, custom housing starts totaled 172,000…. Read More ›
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New Single-Family Home Size Continues Downward Trend
Continuing a multiyear trend, new single-family home size decreased during the second quarter of 2018. New home size has been falling over the last two years due to an incremental move to additional entry-level home construction. According to second quarter 2018 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area decreased to 2,344 square… Read More ›