Eye On Housing
Author Archives
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Construction Layoffs in March
Backward-looking data illustrate the degree of damage done by the sudden stop of the U.S. economy due to the public health response associated with the coronavirus. For example, there were 4,300 net job losses in residential construction in March, followed by a staggering 415,000 losses in home building and remodeling in April. The leading edge of this job loss was… Read More ›
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Gain for Housing Share of GDP During 1Q20
During the first quarter. GDP growth posted its worst performance since the Great Recession, recording a -4.8% growth rate. However, housing’s share of gross domestic product (GDP) increased slightly to 14.9%. The home building and remodeling component – residential fixed investment – also increased slightly, rising to 3.3%. As the economy begins a recovery later in 2020, we expect housing… Read More ›
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New Home Sales Decline in March amidst Virus Concerns
Despite a strong start for 2020, new home sales weakened significantly in March due to challenges associated with COVID-19. Contracts for new, single-family home sales declined in March by 15.4% to a 627,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. NAHB expects further declines in a challenging April, which has… Read More ›
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Housing Starts Decline in March amidst Virus Impacts
According to estimates from the Housing and Urban Development and Commerce Departments, single-family starts began an expected, virus-related decline in March. Construction activity is expected to fall as virus mitigation efforts result in increased unemployment, economic uncertainty and lost business activity. Despite a strong start for 2020 in January and February, the April NAHB/Wells Fargo HMI point to additional construction… Read More ›
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Builder Confidence Posts Historic Decline
Reflecting the growing effects of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes plunged 42 points in April to 30, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The decline in April was the largest single monthly change in the history of the index and marks the lowest builder confidence… Read More ›
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Backwards-Looking Job Data for Construction Show Potential
Given the growing number of economic impacts from mitigation efforts associated with the coronavirus, early 2020 labor market data is of much reduced analytical value. However, the data help to describe where the economy was before the shocks of March and the potential for gains in an eventual rebound we expect to take hold during the fourth quarter. February data… Read More ›
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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 ›
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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 ›