As high rates keep sellers locked in their current homes, new homes are making up an increasing share of the market.
Newly built homes made up almost a third of all single-family homes on the market in Q2 2023 (31.4%), according to a new report from Redfin.
This is up 30.3% YOY and almost double the share from Q2 2019 (17%). It’s a new record for any second quarter in Redfin’s data, though not the highest share ever.
In fact, it’s down from Q1 2023’s share of 33.6%, though Redfin notes the decline follows a normal seasonal trend of new home shares peaking in the winter.
Though builders have slowed home construction, no longer producing the same inventory they did…
Builder confidence has dipped, breaking a seven-month streak of increases, as high rates and shelter inflation put a dent in new home demand.
The National Association of Home Builders and Wells Fargo Housing Market Index, which tracks confidence in the new single-family home market, decreased by 6 points to a reading of 50.
NAHB said that construction costs, lack of buildable lots, and ongoing shortages forced the reading down this month.
“But while this latest confidence reading is a reminder that housing affordability is an ongoing challenge, demand for new construction continues to be supported by a lack of resale inventory, as many homeowners elect to stay put because they are locked in at a low mortgage rate,” NAHB Chairman…
Housing construction declined last month, but the future looks brighter thanks to a bump in permits.
New U.S. home construction rose for the first time in six months, according to data from the U.S. Census Bureau. Residential starts fell by 8% to an annualized rate of 1.43 million.
This is well below estimates from economists surveyed by Bloomberg, who expected a pace of 1.48 million.
Permits for new construction also dipped, down 3.7%% to a rate of 1.44 million. Permits offer an indication of how many homes will be built in the coming months.
But on the bright side, single-family construction permits in particular saw an increase, up 2.2% from May to the highest pace since June 2022.
Builders continue…
Housing construction rebounded by more than expected in February, led by a surge in multifamily projects.
New U.S. home construction rose for the first time in six months, according to data from the U.S. Census Bureau. Residential starts increased by 9.8% from January to an annualized rate of 1.45 million. This greatly exceeds estimates from economists surveyed by Bloomberg, who expected a pace of 1.31 million.
Permits for new homes also increased, up by 13.8% to a rate of 1.52 million. Permits offer an indication of how many homes will be built in the coming months.
Both multifamily and single-family construction saw gains, though multifamily had the best showing with a 24% increase, the most in almost two years. Rents…
Housing construction slid again in December to its lowest point since July, but an increase in single-family starts may signal improvement to come. Residential starts fell 1.4% from November to an annualized rate of 1.38 million, down 21.8% from the same time last year, according to data from the U.S. Census Bureau. This is the fourth consecutive decline for these data. It was driven largely by a dip in multifamily construction, which is volatile month to month. The picture for all of 2022 was fairly bleak. In the entire year, only 1 million homes were started, down 10.6% from 2021 and the largest drop since 2009. Permits for new homes fell 1.6% to a rate of 1.33 million. Single-family permits…
Housing construction slid again in November as inflationary pressure and high rates kept demand down. Residential starts fell 0.5% from October to an annualized rate of 1.43 million, down 16.4% from the same time last year, according to data from the U.S. Census Bureau. This is the third consecutive decline for these data. Economists surveyed by the Wall Street Journal predicted starts would fall to 1.4 million from October’s initial estimate of 1.43 million. Single-family starts dropped 4.1% month-over-month to an annualized rate of 828,000. This is their lowest level since May 2020. Permits for new homes fell 11.2% to a rate of 1.34 million. Single-family permits tanked by 7.1% to their slowest pace since 2020. Permits offer an indication…
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…
Home price appreciation continued to cool in August though growth remained elevated from a year earlier, according to new data. The S&P CoreLogic Case-Shiller National Home Price NSA Index saw home prices decelerate, posting a 13% annual gain in August, down from 15.6% in the previous month. This is the largest monthly deceleration in the history of the index, pushing July’s record to second place. Craig J. Lazzara, Managing Director at S&P DJI, called current trends a “forceful deceleration” of home prices. “These data show clearly that the growth rate of housing prices peaked in the spring of 2022 and has been declining ever since,” he said. “As the Federal Reserve moves interest rates higher, mortgage financing becomes more expensive…
New home mortgage applications dropped sharply in September as buyers backed away from decades-high interest rates. The Mortgage Bankers Association’s Builder Application Survey for September 2022 found that applications for new home purchases fell 13.2% YOY and 7% from August. Based on that data, MBA predicts that new single-family home sales ran at a seasonally adjusted rate of 637,000 in September. “New home purchase activity declined in September as prospective homebuyers pulled back in response to higher mortgage rates, increased concern about an impending recession, and a broader slowdown in home-price growth,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The average 30-year fixed mortgage rate increased almost a full percentage point in the last month, greatly reducing…
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,…
