Tag Archive for ‘single-family’

Interest Rates on Construction Loans Showed Rising Trend in 2018

Interest rates on loans for residential acquisition, development, and construction (AD&C) generally increased throughout 2018, according to results from NAHB’s fourth quarter AD&C survey.  For the fourth quarter, builders and developers responding to the survey reported a median interest rate that varied from 5.75% on loans for pre-sold single-family construction, to 5.88% on loans for land development, to 6.00% on loans… Read More ›

Unexpected Gain for New Home Sales in November

Data for November indicated a surprise gain for the seasonally adjusted annual rate of new single-family home sales. The data was delayed due to the partial government shutdown. Survey data, including builder confidence, suggest December estimates, when published, will show market weakness however. Contracts for new, single-family home sales increased almost 17% to a 657,000 seasonally adjusted annual rate according to… Read More ›

U.S. Population Growth Persists but Growth Rate Slows

The U.S. population grew by 2.0 million between July 1, 2017 and July 1,2018, representing a 0.6% increase from 325.1 million to 327.2 million, according to the U.S. Census Bureau’s national and state population estimates. The 2017 population estimates were revised downward by about 0.6 million, from 325.7 million in the Census’s previous iteration of its estimation methodology. Despite initial… Read More ›

Single-Family Starts Weak, Especially in the West

The pace of single-family starts declined for the third consecutive month as housing affordability concerns continue to weigh on the home construction market.  Total starts posted a 3.2% increase due to gains for multifamily development. Total single-family and apartment construction starts are up 5.1% on a year-to-date basis, according to the joint data release from the Census Bureau and HUD…. Read More ›

Continued Residential Construction Loan Growth

The volume of residential construction loans increased by 2.8% during the third quarter of 2018, marking 22 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 or cost factor for home building growth, but easing credit conditions and a growing loan base have… Read More ›

Gains for Single-Family Built-for-Rent Construction

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 43,000 homes, compared to 33,000 for the prior four quarters. There were 12,000 single-family built-for-rent starts for the third quarter of 2018. According to data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design and NAHB… Read More ›

Housing Affordability Causes Ongoing Weakness for Home Sales

Contracts for new, single-family home sales declined in October, falling 8.9% to a 544,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. The decline came off an upwardly revised September estimate, which was increased from an initial reading of 553,000 to a new estimate of 597,000. The October estimate was the lowest annual pace since… Read More ›

Some Easing of AD&C Lending, According to Builders and Developers

In the third quarter of 2018, credit conditions eased somewhat, according to the builders and developers responding to NAHB’s survey on land acquisition, development, and construction (AD&C) loans. The net tightening index constructed from the NAHB survey was -12.0 in the third quarter quarter, compared to -5.0 the previous quarter. The index is constructed so negative numbers indicate easing of credit; positive tightening, so… Read More ›

Entry-Level Home Inventory Yields Declining New Home Size

Continuing a multiyear trend, new single-family home size decreased during the third quarter of 2018. New home size has been falling over the last three years due to an incremental move to additional entry-level home construction. According to third 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 2,320 square… Read More ›

Builder Confidence Drops as Housing Affordability Issues Rise

Growing affordability concerns resulted in builder confidence in the market for newly-built single-family homes falling eight points to a level of 60 in November on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Despite the sharp drop, builder sentiment still remains in positive territory. Builders report that they continue to see signs of consumer demand for new… Read More ›