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Builder Confidence Climbs to 48 Builder Confidence rose four points to 48 in February after rising seven points to 44 in January, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It was the third consecutive month of increases. All three of the major HMI indices posted gains in February. The HMI index charting current sales conditions increased four points to 52, the component measuring sales expectations in the next six months rose three points to 60 and the component gauging traffic of prospective buyers increased four points to 33. Confidence rose in all regions for the first time in many months. Any number over 50 indicates that more builders view the component as good than view it as poor. Building Permits Fall 1.5% Overall building permits fell 1.5% in January to 1.47 million units after rising 1.9% in December. Single-family permits rose 1.6% to 1.02 million annual units after rising to 994,000 annual units in December. Multifamily permits dropped 7.9% to 355,000 annual units after rising to 501,000 units in December. Regional permit issuance was mixed. Housing Starts Fall 14.8% Housing starts fell 14.8% in January to a seasonally adjusted annual rate of 1.33 million units after falling to 1.46 million units in December. Single-family starts fell 4.7% to 1.0 million units after falling to 1.03 million units in December. However, single-family starts were up 22% from January 2023. The number of apartments under construction dipped below 1 million for the first time since May 2023, with additional declines expected in 2024. In contrast, the number of single-family homes under construction stood at 680,000 in January, matching the best reading since June 2023. Multifamily starts fell 35.6% to an annualized pace of just 327,000 units after rising to 402,000 units in December. Multifamily starts are typically very volatile. New Home Sales Rise 1.5% New home sales rose 1.5% in January to a seasonally adjusted annual rate of 661,000 after rising to a downwardly revised 651,000 homes in December, according to the National Association of Home Builders (NAHB). Sales were up 1.8% from January 2023. Sales for October and November were also revised down. New single-family home inventory in January remained elevated at 456,000 new homes, up 3.9% compared to January 2023, an 8.3 months’ supply at the current building pace. About a six months’ supply is considered balanced. The median new home sale price in January was $420,700, up 1.8% from December, but down 2.6% compared to a year ago. 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 Rise 3.1% Existing home sales rose 3.1% in January to a seasonally adjusted annual rate of 4.0 million after falling to 3.78 million homes in December, according to the National Association of Realtors. Sales were down 1.7% from January 2023. The median existing-home sales price rose 5.1% year over year to $379,100, leaving year-over-year prices below $400,000 for the fifth consecutive month. The inventory of unsold existing homes rose 2% to 1.01 million homes, a 3.0 months’ supply at the current sales pace, down from 3.2-months in December. A chronic shortage of existing inventory is spurring new home construction and sales despite continuing high prices. Year-over-year prices were up in all regions. Regional Housing Data  Mortgage Rates Rise to 6.9% 
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