Eye On Housing
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Rose Quint is Assistant Vice President for Survey Research. Ms. Quint holds a Bachelors of Science degree in Economics/International Business from Old Dominion University as well as a Master’s degree in Economics from Virginia Polytechnic Institute and State University. Her responsibilities include planning and conducting industry surveys, specifically in the areas of builder sentiment, remodeling, housing affordability, and AD&C financing issues. Ms. Quint is also responsible for special research projects, such as studies on builders’ profitability, consumer preferences, construction costs, and membership census. She joined NAHB in 1999.
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Share of Builders Cutting Home Prices Drops from 22% to 15%
As lockdown orders began to ease in May and June 2020, housing data rebounded quickly, providing evidence that this industry is positioned to lead the economy forward. Single-family permits rose almost 12% in May, mortgage applications are at their highest level since January 2020, and builder sentiment, measured by the NAHB/Wells Fargo Housing Market Index (HMI), jumped 21 points in… Read More ›
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Remodelers’ Net Profit Margins Are Flat
The residential remodeling industry, just like any other private industry in the American economy, operates on the basis of competition and profits. Companies enter, stay or exit the industry of their own volition, driven by consumer demand for their services and the expectation of a rate of return commensurate with the risk taken. Because reliable information is critical to make… Read More ›
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52% of Builders Used Incentives to Bolster Sales in May 2020
The NAHB/Wells Fargo Housing Market Index survey conducted in May 2020 reveals that 48% of single-family builders are not using incentives to bolster sales and/or limit cancellations. This of course implies that slightly more than half, 52%, are using some kind of incentive to achieve that objective. What specific incentives are they using? Figure 1 shows the complete list, but… Read More ›
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22% of Builders Reduced Home Prices in April 2020
The housing market did not escape the pain and contraction experienced by the US economy in April 2020 as a result of the lockdown orders issued by state and local governments to mitigate the effects of the COVID-19 pandemic. Builder confidence posted a historic decline and there were broad declines for housing starts. In recent weeks, there has been anecdotal… Read More ›
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Unaffordable Prices Hold Back Prospective Home Buyers
As revealed in a previous post, 56% of buyers who are actively engaged in the process of finding a home have spent upwards of 3 months searching unsuccessfully. What is holding them back? 40% say they can’t find a home at a price they can afford and 32% each say they can’t find a home with the features they want… Read More ›
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Housing Affordability Down Due to Economic Losses Stemming from COVID-19 Pandemic
Surging job losses in March stemming from the COVID-19 pandemic contributed to a decline in housing affordability in the first quarter of 2020, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). In all, 61.3 percent of new and existing homes sold between the beginning of January and end of March were affordable to families… Read More ›
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Time Spent Searching for a Home Continues to Rise
Of the 10% of American adults considering a home purchase in the first quarter of 2020, about half (49%) have moved beyond just planning and are actively engaged in the process to buy a home. This “active buyers” share was slightly higher than in the first quarters of 2018 and 2019—both 46%, and a possible sign that low interest rates… Read More ›
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Affordability Expectations Show No Improvement among Home Buyers
While home buyers report slightly more optimistic expectations for future housing availability (see earlier post) in the first quarter of 2020, there is no commensurate improvement in their outlook for affordability. In fact, 78% say they can afford fewer than half the homes available in their markets, the same share as a year earlier. This in turn means that only… Read More ›
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Share of Buyers Expecting Housing Availability to Improve Rises to Highest 1st Quarter Reading in Three Years
According to the latest Housing Trends Report (HTR), the share of prospective home buyers expecting their house search to get easier in the months ahead rose to 25% in the first quarter of 2020, up from 16% and 22%, respectively, in the first quarters of 2018 and 2019. This rise marks the third consecutive year-over-year increase in the share of… Read More ›
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Share of Americans Looking to Buy a Home Drops to Lowest 1st Quarter Reading in Three Years
According to NAHB’s latest Housing Trends Report (HTR), the share of adults who are considering purchasing a home in the next 12 months fell to 10% in the first quarter of 2020, down from 17% and 13%, respectively, in the first quarters of 2018 and 2019. This decline marks the sixth consecutive year-over-year drop in the share of American adults… Read More ›