Housing construction fell sharply in October, another miss for the rapidly constricting housing market. Starts for both single- and multi-family units dropped by 4.2% month-over-month to an annualized rate of 1.425 million units, according to data from the U.S. Census Bureau. Economists surveyed by MarketWatch had expected housing starts to register a 1.41 million rate after seasonal adjustment. Single-family starts fell by 6.1% from September, and single-family completions were down 8.3%. Building permits dipped 2.4%, an indicator of builders’ pessimism moving into winter, the slowest season for real estate. Permits offer an indication of how many homes will be built in the coming months. Housing is desperately needed, especially single-family units. Some experts say it could take a decade to…
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,…
Builder confidence dropped two points in June to its lowest level since June 2020, according to the National Association of Home Builders(NAHB)/Wells Fargo Housing Market Index (HMI). The HMI asks builders for their opinions on current single-family home sales and sales expectations for the next six months, as well as rate their traffic of prospective buyers. Any number under 50 indicates that more builders view conditions as worse than better. The HMI posted a reading of 67 for the month of June. It is the sixth consecutive month of decline for the index. NAHB’s press release called it a “troubling sign for the housing market.” “Six consecutive monthly declines for the HMI is a clear sign of a slowing housing…
Builder confidence fell eight points in May, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The HMI registered a reading of 69 in May, a significant drop from April. This is the fifth consecutive month of decline and the lowest reading since June 2020. The low reading suggests that the housing market is slowing thanks to affordability challenges. “The housing market is facing growing challenges. Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and, based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family,” said NAHB Chief Economist Robert…
