Market Briefing

  • US Economy
  • Housing
  • Power Tool Industry
  • Distribution
  • Canada
  • Market Trends
  • PDF
  • US Economy
  • Housing
  • Power Tool Industry
  • Distribution
  • Canada
  • Market Trends
  • PDF

Housing & Construction

Housing & Construction January 2023

1/10/2023

 
Builder Confidence Falls to 31
Builder confidence fell two points to 31 in December after falling to 33 in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It was the 12th consecutive monthly decline for the HMI after the index hit an all-time high of 90 in November 2021. The decline left the HMI below 50 for the fifth consecutive month and was the lowest confidence reading since 2012 with the exception of the onset of the pandemic in 2020. NAHB’s latest survey showed that 62% of builders are using incentives to bolster sales, including providing mortgage rate buy-downs, paying points for buyers and offering price reductions. But with construction costs up more than 30% since inflation began to take off at the beginning of the year, there is little room for builders to cut prices. Only 35% of builders reduced homes prices in December, edging down from 36% in November. The average price reduction was 8%, up from 5% to 6% earlier in the year. Scores fell in all regions. Any number over 50 indicates that more builders view the component as good than view it as poor.
 
Building Permits Fall 11.2%
Overall building permits fell 11.2% in November to a 1.43 million unit annualized pace after falling to 1.53 million units in October. Single-family permits fell 7.1% in October to 781,000 units after falling 3.6% to 839,000 units in October. It was the eighth consecutive month single-family permits declined. Multifamily permits dropped 16.4% to an annualized pace of 561,000 units after rising to 692,000 units in October. Permits were down year to date in all regions. 
 
Housing Starts Fall 0.5%
Housing starts fell 0.5% in November to a seasonally adjusted annual rate of 1.43 million units after falling to 1.44 million units in October. Single-family starts fell 4.1% to 828,000 units after falling to 855,000 units in October. Single-family starts were down 9.4% year to date and 32% since February when rates began to rise. Multifamily starts rose 4.9% to 599,000 units after dropping to 570,000 units in October. Multifamily starts are at a 50-year high but permits are dropping. Regional starts were mixed.
 
New Home Sales Rise 5.8%
New home sales rose 5.8% in November to a seasonally adjusted annual rate of 640,000 new homes after rising to 632,000 new homes in October. Sales were down 15.2% from November 2021. In November 2021, 13% of new home sales were priced below $300,000. That share has now fallen to 7%. New single-family home inventory remained elevated at an 8.6 months’ supply; a 6 months’ supply is considered balanced. The number of new homes available for sale rose 18.2% to 461,000 from November 2021. A year ago, there were just 32,000 completed, ready to occupy homes available for sale. Regional new home sales were mixed. Sales of new homes are tabulated when contracts are signed and are considered a more timely barometer of the housing market than purchases of previously owned homes, which are calculated when a contract closes.
 
Existing Home Sales Fall 7.7%
Existing home sales fell 7.7% in November to a seasonally adjusted annual rate of 4.09 million units after falling to 4.43 million units in October, according to the National Association of Realtors. It was the tenth consecutive month existing home sales fell. Sales were down 35.4% from November 2021. The inventory of unsold existing homes declined for the fourth consecutive month, falling to 1.14 million homes, a 3.3 months' supply at the current sales pace, up from 2.1 months in November 2021. The median existing house price increased 3.4% from November 2021 to $370,700.That marked 129 consecutive months of year-over-year home price increases, the longest such streak on record. However, the rate of increase is definitely slowing down. Properties remained on the market for an average of 24 days in November, up from 21 days in October. Sales were down in all regions.
Picture
Picture
  • 30-year fixed-rate mortgages fell to 6.4% at the end of December after falling to 6.8% at the end of November. Mortgage rates were 3.1% at the end of December 2021.
  • Mortgage interest rates have more than doubled over the past year.
  • Falling rates have encouraged fence sitters to enter the market once again.
Next Section
© Robert Bosch Tool Corporation.  All rights reserved, no copying or reproducing is permitted without prior written approval.


    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016

    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture


    ​Contact Us

Powered by Create your own unique website with customizable templates.