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 2022

1/13/2022

 
Builder Confidence Rises to 84
Builder confidence rose one point to 84 in December after rising to 83 in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI hit an all-time high of 90 last November. Low existing inventories and strong buyer demand continued to keep confidence high despite persistent supply chain issues and chronic shortages of materials, land and labor. All three major HMI indices posted gains in October. The HMI index gauging current buyer traffic edged up one point to 70. The present sales index rose one point to 90 and the index measuring expectations for future sales remained at 84 for the third consecutive month. All three components remain exceptionally high. Regional scores remained mixed. Any number over 50 indicates that more builders view the component as good than view it as poor.
 
Building Permits Rise 3.6%

Overall building permits rose 3.6% in November to an annualized pace of 1.71 million units after rising to 1.65 million units in October. Single-family permits rose 2.7% to an annualized pace of 1.10 million units after rising to 1.07 million units in October. Multifamily permits rose 5.2% to 609,000 units after rising to 581,000 units in October. Due to supply chain issues, there are 152,000 single-family units that have been permitted but have not yet begun construction, up 43.4% from a year ago. Regional permits were up on a year-to-date basis.
 
Housing Starts Rise 11.8%
Housing starts rose 11.8% in November to a seasonally adjusted annual rate of 1.68 million units after falling to 1.52 million units in October. Single-family starts rose 11.3% to 1.17 million units after falling to 1.04 million units in October. Single-family starts were up 28% year-to-date. The multifamily sector, which includes apartment buildings and condos, rose 12.9% to 506,000 units after rising to 481,000 units in October. Combined single-family and multifamily regional starts were up year to date compared to 2020. Starts undoubtedly benefitted from mild weather throughout much of the country and a relatively late Thanksgiving.

New Home Sales Jump 12.4%
New home sales jumped 12.4% in November to a seasonally adjusted annual rate of 744,000 new homes after sales for October were downwardly revised. Sales were down 14% from November 2020. Inventory remained steady at a 6.5-months' supply, with 402,000 new single-family homes for sale, up substantially from 290,000 homes in November 2020.The median sales price rose to $416,900 from the $408,700 median sales price posted in October and was up 18.8% year over year, due to higher development costs, including materials. Sales of new homes fell in all regions. 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 1.9% 

Existing home sales rose 1.9% in November to a seasonally adjusted annual rate of 6.46 million units after rising to 6.34 million units in October. Sales were down 5.8% from October 2020, according to the National Association of Realtors. The median price in November rose to $353,900, up 13.9% year-over-year. Year-over-year prices have risen for 117 consecutive months. Total inventories fell nearly 10% to just 1.1 million homes, a scant 2.1 months’ supply at the current sales pace, the lowest since March and close to the record low of 1.9 months set in 2020. Properties were on the market for an average of just 18 days in November. Regional sales were mixed. 
 
Regional Housing Data
Picture
Picture
  • „30-year fixed-rate mortgages (FRM) dropped slightly to 3.05% at the end of December from 3.1% at the end of November. Mortgage rates were 2.7% at the end of December 2020.
  • „Despite the economy, inflation and monetary policies, mortgage rates have stayed within half a percentage point all year. Rates are expected to rise in 2022.
  • „Purchase intent remains strong despite persistent problems with inventory and rising home prices.
Next Section
© Robert Bosch Tool Corporation.  All rights reserved, no copying or reproducing is permitted without prior written approval

Comments are closed.


    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.