Eye On Housing
Builders and developers responding to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C) indicated that credit continued to become tighter in the second quarter of 2020. The net tightening index derived from the survey came in at 12.0, after reaching an 8 1/2-year high of 22.7 in the first quarter. The index is constructed so that positive numbers… Read More ›
After an accelerated pace of layoffs in March and April, construction sector hiring roared back in May and continued at somewhat reduced pace in June, per data from the BLS Job Openings and Labor Turnover Survey (JOLTS). In May, the hiring rate increased to 9.7%, after a subdued 3.7% rate in April. This was the strongest rate of hiring in… Read More ›
Housing will lead the economic recovery. Due to low mortgage interest rates, a renewed focus on the importance of home, and a lack of for-sale inventory, housing data has been a relative bright spot as the overall economy struggles to establish a rebound. Due to this broader weakness (GDP declined at a -32.9% rate for the second quarter) and gains… Read More ›
The U.S. economy fell at its fastest pace on record in the second quarter of 2020 as economic activities were canceled or restricted amid the COVID-19 pandemic. The economy will start to bounce back as restrictions are lifted and economic activities increase. According to the “advance” estimate released by the Bureau of Economic Analysis (BEA), real gross domestic product (GDP)… Read More ›
New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs. Census and HUD estimated new home sales in June at a 776,000 seasonally adjusted annual pace, a 14% gain over May and the strongest seasonally… Read More ›
The affordable housing credit (the Low-Income Housing Tax Credit or LIHTC) plays a critical role in the housing sector by ensuring a supply of attainable rental housing. Created as part of the 1986 tax reform legislation, the LIHTC has been responsible for financing the development or preservation of more than 3.2 million rental homes. Moreover, the housing credit has been… Read More ›
Using the 1997-2019 Multiple Listing Service (MLS) transactions data, new Freddie Mac’s study identified 1.4 million properties with Accessory Dwelling Units (ADUs) in the United States. The study showed that first-time listings with ADUs grew most rapidly during the last decade, averaging 8.6% per year. The expansion of listings with ADUs was fastest in high-cost fast-growing areas in the South… Read More ›
Nonfarm payroll employment increased in all 50 states and the District of Columbia, in June compared to the previous month. The largest increase came from California, which added 558,200 jobs during this time. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 4.8 million over the month of June, following an increase of 2.7 million… Read More ›
Single-family housing permits and starts were higher in June as housing demand and construction remains a bright spot for the overall economy. Demand is being supported by low interest rates and renewed focus on the importance of home amidst the virus crisis. Single-family starts in June were estimated by Census/HUD at an 831,000 seasonally adjusted annual rate, after an revised… Read More ›
In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak… Read More ›