Tag Archives: Homebuilders

As the vocabulary surrounding the housing market switches from crisis to recovery, the NAHB has deep concerns about factors currently limiting the recovery.

Economic data for the week ending February 22--particularly for housing--was less than encouraging. A small increase in existing-home sales was the only bright spot, but that was weighed down by another drop in the median price of existing single-family homes to their lowest level in 10 months. The word "another" is critical because it means the drop in inventory in December did not result in higher prices. Indeed, the supply of homes for sale fell again in January, this time to the lowest level in 13 years.

Fannie Mae's Economic & Strategic Research Group is maintaining its outlook for slow and steady growth in 2013.

Fixed mortgage rates moved up just a smidgen this week, according to surveys from Freddie Mac and Bankrate.com.

Housing starts plunged 8.5 percent in January to a seasonally adjusted annual rate of 890,000, the Census Bureau and HUD reported jointly.

Led by a sharp drop in the South, builder confidence slipped in February to 46--the lowest level since November--the National Association of Home Builders (NAHB) reported Tuesday. Economists had expected the Housing Market Index (HMI), a measure of confidence, would improve to 48 from January's reading of 47. Nationally, two of the three index components--current single-family sales and buyer traffic--declined, while the assessment of sales for the next six months edged up.

Capital Economics recently explored concerns that particular states are seeing "unsustainable, investor-fueled" increases.

One real estate consulting firm has noticed a substantial divide between housing starts and completions and points to labor as the major factor.

While some take it as a good sign that housing starts are again on the rise and construction is making a small comeback, some might cautiously wonder if the market is ready to handle an increase in construction and if we aren't headed for a repeat of the overbuilding that contributed to the past housing boom and bust. The Census Bureau reports new home sales have risen 9 percent over the past year, while housing starts have risen by a much higher 37 percent. However, Capital Economics insists the imbalance is actually not unusual.

As more markets across the country improved, all 50 states--plus the District of Columbia--were able to receive representation in February's Improving Markets Index (IMI) released by the National Association of Home Builders (NAHB) and First American. Last year during this time, just 36 states were represented.