Tag Archive for ‘economics’

Rising Material Challenges, Declining Builder Sentiment

Rising material prices and supply-chain shortages resulted in builder confidence dipping to its lowest level since August 2020. The latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) shows that builder confidence in the market for newly built single-family homes fell two points to 81 in June. Despite the monthly decline, the reading above 80 is still… Read More ›

Count of Open Construction Jobs Near Two-Year High

The count of open construction jobs increased in April to 357,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains hot and requires additional labor, lots and lumber and building materials to add inventory. Overall, hiring in the construction sector slowed in April, declining to a 4.5% rate. The recent… Read More ›

Residential Construction Loan Volume Moves Higher

Ending a period of volume decline that began at the end of 2019, the volume of residential construction lending posted an increase during the first quarter of 2021. Nonetheless, overall residential construction loan volume ended the year lower due to accelerated sales growth, which reduced outstand loans at a faster rate. The volume of 1-4 unit residential construction loans made… Read More ›

Builders Report 26 Percent Increase in Material Prices

A post published last week discussed how record numbers of builders were reporting on broad-based shortages of building materials and products.  The source of the information was the May survey for the NAHB/Wells Fargo Housing Market Index (HMI).  The same survey asked the HMI panel of single-family builders how total material costs for the same house have changed over the… Read More ›

Rates on Development & Construction Loans Continue to Decline.

Builders and developers responding to NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued to report declining interest rates in the first quarter of 2021.  The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 7.27 to… Read More ›

Domestic Sawmill Output Not Keeping Up with Construction

The historic climb for lumber prices, combined with delays and higher costs for other building materials, is a significant limiting factor for home building in 2021. Despite a historically low level of overall housing inventory and solid demand due to low mortgage interest rates and demographics, new construction has been unable to add additional needed supply to the market, resulting… Read More ›

New Home Sales Decline Due to Higher Costs

After a significant downward revision for the preliminary March data, April recorded a decline of 5.9% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The April seasonally adjusted annual rate (863k) was the lowest since June 2020, with the exception of a weather-influenced February report. Residential demand continues to be supported by… Read More ›

Employment Situation in April: State-Level Analysis

Nonfarm payroll employment increased in 33 states and the District of Columbia in April compared to the previous month while 17 states lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 266,000 in April, following an increase of 770,000 jobs in March. On a month-over-month basis, employment data was strong in California, which… Read More ›