Housing Starts Beat Expectations In August

Housing starts surprised the industry with a boost in August, though building permits lagged at their slowest pace the last two years. Starts increased 12.2% month-over-month to an annualized rate of 1.575 million units in August, exceeding market expectations of 1.445 million. This is the largest jump since March last year. But while the data may be positive, housing still faces pressure from inflated material costs and rising interest rates. Single-family starts increased by only 3.4%. The unexpected jump was propelled by a 28.6% surge in demand for buildings with five or more units, suggesting builders are betting on the hot rental market to stay. That prospect doesn’t bode well for the homebuilders. Builder sentiment dropped three points in September,…

Housing Starts Plummeted In July

Homebuilding plummeted in July as both homebuyers and sellers continue to lose confidence in the market. Housing starts fell by a shocking 9.6% to a seasonally adjusted annual rate of 1.446 million units last month, according to new data released by the Commerce Department.  This is their lowest rate since February 2021 and significantly below market expectations of 1.53 million. Last month’s revised data put starts at a rate of 1.599 million units. A drop this big suggests the housing market still has room to contract in the third quarter of this year. Ian Shepherdson of Pantheon Macroeconomics called the data “terrible” in a tweet Tuesday. Single-family starts fell 10.1%, their lowest in two years, while starts for units in…

Morning Roundup (1/20/2022)– Application Surge, Home Price Appreciation Accelerating

Good Morning! Today is Thursday, January 20. President Biden suggested he would break up his climate and social spending bill to improve the chances of passage. Senate Democrats failed to alter the filibuster to pass voting legislation, with Joe Manchin and Kyrsten Sinema voting with Republicans. Starbucks rescinded its vaccination requirement after the Supreme Court struck down Biden’s mandate. And in mortgage and housing news… Loan Applications Surge: Mortgage loan application volume rose 2.3% from last week, MBA’s weekly survey reported. Acceleration In Full Swing: Monthly home value appreciation accelerated for the first time since July as potential buyers continue to outnumber new listings, driving December inventory to an all-time low. New Home Purchase Apps Down: Mortgage applications for new…

Northeast Housing Starts Hit Biggest Monthly Gain Since 1959

A new report from the U.S. Census Bureau and the Department of Housing and Urban Development showed August housing starts up 3.9% from July and 17.4% year-over-year, despite labor and supply shortages.  Homebuilders started 1.615 million homes in August. Nationally, 1.727 million building permits were pulled, 6% higher than July and higher than the expected 1.6 million. The number of homes finished in August was 1.33 million, down 4.5% from July but up 9.4% from the same time last year. Multi-family starts drove the gains completely, with single-family starts falling 2.8%. Multi-unit starts are up to 52.7% year-over-year, while single-family starts have only risen 5.2%. Permits for single-family units are also down 0.1% while multi-family permits increased 44.3%. Starts fell…

FHFA HPI Beats Its Own Record, Again

The FHFA’s Q2 House Price Index (HPI) saw its largest ever annual gain, with house prices rising 17.4% year-over-year, up from 12.6% in the last quarter. This surge in home prices breaks the previous record, set in Q1. The FHFA HPI measures the movement of single-family house prices by reviewing repeat mortgage transactions on homes whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. “During the second quarter, house prices peaked in June with an 18.8 percent growth rate compared to a year ago,” said Dr. Lynn Fisher, Deputy Director of FHFA’s Division of Research and Statistics. “For the quarter, annual gains surpassed 20 percent in the Mountain, New England, and Pacific census divisions and…

Housing Starts Jump In March

Housing starts increased 19.4 percent in March amid strong buyer demand, according to a new report released by the US Department of Housing and Urban Development and the US Census Bureau. Overall housing starts totaled 1.74 million units – the fastest pace for combined single-family and multifamily construction since June 2006. “Builder confidence remains strong, pointing to gains for single-family construction in 2021,” said Chuck Fowke, chairman of the National Association of Home Builders. “However, rising costs for most kinds of building materials continue to impede positive additional momentum in the market.” On a regional basis compared to the previous month, combined single-family and multifamily starts are 64 percent higher in the Northeast, 122.8 percent higher in the Midwest, 13.5…

Housing Starts Wayyyyyy Down In April

By Jim Perskie Another day, another housing report battered by the economic shutdown driven by the coronavirus pandemic. Residential housing starts in the United States in April dropped 30.2 percent from March and were 29.7 percent below April 19, according to a report released Tuesday by the Census Bureau and the Department of Housing and Urban Development. Single-family housing starts were 25.4 percent below March. Privately-owned housing starts in April were at a seasonally adjusted rate of 891,000, significantly below the 1.28 million in March. “This drop in new home construction is not surprising since most states were under stay-at-home orders in April, which included home builders,” said Bill Banfield, vice president of Capital Markets at Quicken Loans. “While it…

Single-Family Housing Starts Down 17%

Another day, another clear sign that the housing market is taking a beating. Single‐family housing starts in March were at a rate of 856,000 – 17.5 percent below the revised February figure of 1,037,000, according to a monthly report released Thursday the U.S. Census Bureau and Department of Housing and Urban Development. “Housing has been deemed an essential business in most of the nation, and in the few states where the governors have not acted, we urge them to deem construction as essential,” said Dean Mon, chairman of the National Association of Home Builders (NAHB). “Housing can help lead an eventual rebound, as it has done in previous recessions.” The report also found: Total housing starts decreased 22.3 percent in…