Tag Archive for ‘home building’

AD&C Lending for Home Building Remains Restrictive

A number of economic indicators are pointing to improving days ahead for housing and home building. These include The NAHB/Wells Fargo Housing Market Index reached its highest level since April 2007 The NAHB/Wells Fargo Housing Opportunity Index, a measure of home buying affordability, is at an all time high The NAHB/First American Improving Markets Index now counts 98 metro areas as improving… Read More ›

AD&C Lending for Home Building Remains Restrictive

A number of economic indicators are pointing to improving days ahead for housing and home building. These include The NAHB/Wells Fargo Housing Market Index reached its highest level since April 2007 The NAHB/Wells Fargo Housing Opportunity Index, a measure of home buying affordability, is at an all time high The NAHB/First American Improving Markets Index now counts 98 metro areas as improving… Read More ›

Pending Home Sales Up

The Pending Home Sales Index, a forward-looking indicator based on contracts signed, increased 2.0 percent to 97.0 in January, up from the downwardly revised 95.1 in December. The January 2012 level is up 8.0 percent from the same period one year ago.  The National Association of Realtors (NAR) reported that all four regions are up from January 2011. If contracts… Read More ›

A Look Inside Builders’ Books

If you have ever wondered how much single-family builders are earning these days or how much profit is considered “average” in the industry, then a recently published NAHB study based on a national survey of single-family builders titled “The Cost of Doing Business Study: 2012 Edition” will help provide answers. On average, single-family builders in fiscal year 2010 made $7.1… Read More ›

Producer Prices in January – Watch Gypsum

The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for January on Thursday. The index for finished goods rose 0.1 percent in January from December, balancing a 0.4 percent increase in the core index and declines in the food (-0.3 percent) and energy (-0.5 percent) indexes, keeping the overall index in line with its relatively flat trajectory… Read More ›

HOI Indicates Affordability at All-Time High

The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) rose to 75.9 during the fourth quarter of 2011,  the highest number recorded in the 20-year history of the index.  The HOI is the percentage of homes sold during the quarter affordable to a median-income family, based on standard underwriting criteria.  An HOI of 75.9 means that 75.9 percent… Read More ›

Housing Starts Continue Improvement

January housing starts increased 1.5% to 699,000 on a seasonally-adjusted annual basis. The relatively small month-to-month increase was masked by a substantial revision to November and December estimates. With the revisions, total starts rose to 702,000 in November from a previously reported 685,000. November is the first month above 700,000 since October 2008. Single-family starts were down 1% on a… Read More ›

Multifamily Starts Indicate Sustained Recovery

The Census Bureau’s preliminary estimate for starts in buildings with five or more units in January came in at 175,000 (at a seasonally adjusted annual rate)—up 14 percent from the revised rate for December.  About half of January’s increase was due to a 7 percent downward revision to the starts rate for December.              … Read More ›

Builder Sentiment Up Again

The NAHB/Wells Fargo Housing Market Index (HMI) increased four points in February to 29, the highest level since April 2007. The increase marks the fifth consecutive month of an increase for a total of 15 points since recording a 14 in September 2011. All three components also recorded levels not seen since early 2007. The current and future sales components… Read More ›

Newly Constructed Home Trends in 2011

Single-family homes started in 2011* were a bit different than the ones builders started in 2010.  Unpublished Census Bureau data show that, on average, homes started in 2011 were bigger than those started in 2010.  Homes were also more likely to have more features and amenities.  These developments must be analyzed with caution, however, keeping in mind that total single-family… Read More ›