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 November 2019

11/13/2019

 
Builder Confidence Rises to 71
Builder confidence rose three points to 71 in October after rising to 68 in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Builder confidence had been in the 60s since May. October’s reading was the highest level in 20 months. Lower mortgage rates and a shift to more affordable homes by many builders appear to be bringing buyers back into the market. All the HMI indices posted gains in October. The index gauging current sales conditions rose three points to 78, the component measuring sales expectations in the next six months jumped six points to 76 and traffic of prospective buyers rose four points to 54. Builder Confidence rose in all regions.
 
Building Permits Fall 2.7%
Building permits fell 2.7% in September to a seasonally adjusted annual rate of 1.39 million units after rising to 1.42 million units in August. Single-family permits increased 0.8% to 882,000 units and multifamily permits fell 8.2% to 505,000 units. Regional permits were mixed.
 
Housing Starts Fall 9.4%

Housing starts fell 9.4% in September to a seasonally adjusted annual rate of 1.26 million units after rising to 1.36 million units in August. Single-family starts increased 0.3% to 918,000 units from a downwardly revised August reading. Multifamily starts fell 28.2% to 338,000 units after jumping to 445,000 units in August. Regional starts were mixed. The single-family market appears to be gaining momentum, according to analysis from Wells Fargo. While single-family permits are running below single-family starts, Wells Fargo predicts that both starts and permits will be heading higher.
 
New-Home Sales Fall 0.7%
New-home sales fell 0.7% in September to a seasonally adjusted annual rate of 701,000 units after rising to a downwardly revised reading in August. New home sales were up 7.2% from September 2018. The inventory of new homes for sale fell to 321,000 homes in September, a 5-months’ supply at the current sales pace, down from a 5.5-months’ supply in August. The median sales price fell to $321,000 in September after rising to $328,400 in August. The median sales price in September 2018 was $328,300. Regional new home sales year to date 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 2.2%
Existing home sales fell 2.2% in September to a seasonally adjusted annual rate of 5.38 million homes after rising to 5.49 million homes in August. Sales were up 3.9% from September 2018. Sales fell in all regions. Current mortgage rates make buying a home very appealing, but a shortage of inventory has driven up price points. Total housing inventory rose slightly to 1.83 million homes and was up 5.9% from September 2018. Unsold inventory is at 4.1-months’ supply at the current sale pace, up from a 4-month supply in August and up from 4.4 months in September 2018. The median existing home price for all housing types in September was $280,800, up 5.9% from September 2018. September was the 91st consecutive month that home prices increased. 
 
 Regional Housing Data

Picture

Mortgage Rates Rise to 3.75%

Picture
  • A 30-year fixed-rate mortgage (FRM) rose to 3.75% at the end of October from 3.64% at the end of September. Mortgage rates were 4.86% at the end of October 2018.
  • Freddie Mac expects rates to average 4.8% next year.
  • Low mortgage rates have caused a corresponding increase in applications for mortgages and refinancing.
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.