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 2020

11/13/2020

 
Builder Confidence Rises to 85
Builder confidence rose two points to 85 in October
after rising to 83 in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It was the first time the index has been above 80 for two consecutive months and the sixth consecutive monthly increase. All the HMI indices posted or matched their highest readings ever in October. The HMI index gauging current sales conditions rose two points to 90, the component measuring sales expectations in the next six months increased three points to 88 and the measure charting traffic of prospective buyers held steady at 74. Regional scores all rose for the fifth consecutive month. Any number over 50 indicates that more builders view the component as good than do as poor.
 
Building Permits Rise 5.2%
Building permits rose 5.2% in September
to a seasonally adjusted annual rate of 1.55 million units after falling to 1.47 million units in August. Single-family permits increased 7.8% to a 1.12 million rate after rising to a 1.04 million rate in August. Multifamily permits dropped 0.9% to a 434,000 unit rate. On a year-to-date regional basis, permits were mixed.
 
Housing Starts Rise 1.9%
Housing starts rose 1.9% in September
to a seasonally adjusted annual rate of 1.42 million units after falling to downwardly revised number in August. Single-family starts rose 8.5% to a seasonally adjusted annual rate of 1.1 million units after rising 4.1% to 1.02 million units in August. It was the highest pace of single-family starts since 2007. Limited supplies of building materials are keeping starts from being even higher. Multifamily starts dropped 16.3% to 307,000 units after dropping sharply in August. Regional starts were mixed year to date compared to 2019.
 
New-Home Sales Fall 3.5%
New-home sales fell 3.5% in September
to a seasonally adjusted annual pace of 959,000 from a downwardly revised number in August. Sales were up 32.1% from September 2019. Year-to-date new-home sales are up 16.9%. Inventory rose to a 3.6 months’ supply from 3.3 months in August, with 248,000 new single-family homes for sale, 32.1% below the supply in September 2019. Just 48,000 homes were completed and ready to occupy. The median sales price rose to $326,800 from $312,800 in August and $315,700 a year ago. NAHB noted that while demand was strong, increases in the price of lumber and other materials are driving up prices. New home sales rose in all four 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 9.4%
Existing home sales rose 9.4% in September
to a seasonally adjusted annual rate of 6.54 million in September after rising to 6.0 million in August. Existing home sales were up 20.9% from September 2019. The median existing-home price for all housing types in September was $311,800, up 14.8% from September 2019, as prices rose in every region. September's national price increase marks 103 straight months of year-over-year gains. Total housing inventory at the end of September was 1.47 million units, down 1.3% from August and down 19.2% from September 2019. Unsold inventory was at a 2.7-month supply at the current sales pace, down from 3.0 months in August and down from a 4.0-month supply in September 2019. Properties are moving very quickly; 70% of homes were on the market for less than a month. For the fourth consecutive month, sales rose month over month and year over year in every region. Sales in vacation destination counties have been accelerating since July, with a 34% year-over-year gain in September.
 
Regional Housing Data 
Picture
Mortgage Rates Slip to 2.8%
Picture
  • A 30-year fixed-rate mortgage (FRM) fell slightly to 2.8% at the end of October from 2.9% at the end of September. Mortgage rates were at 3.8% at the end of October 2019.
  • Freddie Mac notes that historic low rates are fueling housing demand and expects rates to remain low through the remainder of the year, although falling inventory and higher home prices could stifle demand. 
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.