Tag Archive for ‘housing economics’

COVID-19 Has Impacted Home Purchasing Plans

According to NAHB’s latest Housing Trends Report, the share of Americans who are considering the purchase of a home in the next 12 months was 13% in the third quarter of 2020, one percentage point higher than a year earlier and the first year-over-year gain in the 3-year history of this series. The gain shows the COVID-19 crisis has impacted… Read More ›

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 ›

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 ›

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 ›

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 ›

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 ›

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 ›