Tag Archive for ‘home building’

Pending Sales Slump

The Pending Home Sales Index decreased 1.3% in April for a second consecutive monthly decline, and fell 3.3% below its level a year ago. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), decreased to 109.8 in April, down from a revised 111.3 in March. The PHSI decreased… Read More ›

Household Debt Levels Recovered, Composition Shifts

According to the Federal Reserve Bank of New York report, household debt has returned to its previous peak level. Since the recession’s end, consumer installment loans have grown faster than real-estate secured debt and has been shown to be rising faster than household income as well. At the same time however, transition rates into serious delinquency are higher on consumer… Read More ›

Slower Growth for AD&C Loans

The volume of residential construction loans increased by 1.6% during the first quarter of 2017, marking 16 consecutive quarters of growth. However, the growth rate for lending during the fourth quarter of 2016 and the start of 2017 were the slowest since early 2013. 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… Read More ›

Trends in Delinquency Rates Point to Continued Healing

Following a surprising, but small, increase in the percent of 1-4 family first-lien mortgages that were either 90 or more days delinquent or were in the process of foreclosure over the fourth quarter of 2016, the Mortgage Bankers Association reported that the measure continued its descent in the first quarter of 2017. This measure of delinquency, at least for conforming… Read More ›

April Buyers Chafe at Supply Constraints

Existing home sales declined 2.3% in April as inventory fell year-over-year for the 23rd consecutive month, while the velocity of sales increased to the highest level since the National Association of Realtors (NAR) began tracking the monthly sales timeframe.  At the current sales rate, the April unsold inventory represents a 4.2-month supply, up from the March 3.8-month supply, but down… Read More ›

AD&C Financing Standards Continue to Ease

Over the first quarter of 2017, builders and developers reported easing credit conditions for acquisition, development, and single-family construction (AD&C) loans and the pace of easing quickened. Historically, results from the NAHB’s AD&C Financing Survey have tracked quarterly changes in bank-held residential construction loans. The overall net tightening index based on the AD&C Financing Survey was -25.0 in the first… Read More ›

Decline for April Sales Masks 2017 Gains

Contracts for new single-family home sales fell more than expected in April, declining 11.4% to a 569,000 seasonally adjusted annual rate according to estimates from the joint data release of HUD and the Census Bureau. The decline occurred after solid, positive revisions for new home sales for the first three months of the year. All told, total new home sales for 2017 stand at 210,000, a 11.3%… Read More ›

Multifamily Built-for-Rent Share Remains Elevated

An elevated market share for new rental multifamily homes is holding typical apartment size below levels seen during the pre-recession period. However, as multifamily developers build more for-sale housing units in the years ahead, the average size of multifamily homes is likely to rise. The recent pattern of change in the size of new multifamily units stands in contrast to the post-recession increase in the size… Read More ›

Remodeling by Generational Composition of the Household

Analysis of data from the most recent release of the American Housing Survey indicates that households with two generations and those with three generations tended to remodel more than households with only one generation. Within two-generation households, however, those that include a generation older than the household head were less likely to remodel, but tended to spend the most when… Read More ›

Multifamily Starts Decline, Single-Family Permits Soft in April

Total housing starts declined in April after strong early months in 2017. Total starts were down almost 3%, falling to a 1.172 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. This decrease was due to a multifamily production decline, although single-family permit activity was also softer than expected in April. Single-family starts were effectively flat, rising slightly to… Read More ›