Tag Archives: Homebuilders

Continuing to shrug off sequester cutbacks, but feeling the effects of adverse weather, the nation's economy "continued to expand at a modest to moderate pace" from early July though late August, the Federal Reserve reported in its Beige Book assessment. Residential real estate activity "increased moderately" and "demand for nonresidential real estate increased," though "lending activity weakened a bit." Lending standards have largely remained unchanged, while credit quality has improved.

Led by multifamily activity, new housing permits and starts rose in July with new construction, continuing a shift from single-family homes.

The National Association of Home Builders' (NAHB) Housing Market Index (HMI)--a measure of builder confidence--increased again in August, climbing three points to 59, its highest reading since November 2005, the group reported Thursday. The index has improved 15 points (34 percent) in the last three months. Economists had expected the August index to slip to 56 from July's originally reported 57. The strong August numbers--following the strong June and July reading--gave further evidence to a recovery in the housing sector.

NAHB's 55+ Housing Market Index (HMI)--a measure of builder confidence in that particular market sector--increased 24 points over the same period last year.

According to a recent survey conducted by the Mortgage Bankers Association (MBA), applications for new home sales are on the rise.

The number of markets listed on the National Association of Home Builders' (NAHB) Improving Markets Index (IMI) continued to decline in August, though the index still sits well ahead of where it was last year, the association reported. "While the number of improving housing markets this August remains well ahead of the same month last year, the index is affected by seasonal softening in home prices just as we saw happen in 2012," explained NAHB chief economist David Crowe.

Construction spending in June came to an estimated annual rate of $883.9 billion, the Census Bureau reported Thursday. June's spending was 0.6 percent below the revised May estimate of $889.4 billion but 3.3 percent above the June 2012 figure of $855.8 billion. Spending on residential construction in the private sector was at a pace of $332.1 billion, essentially flat from May and 18.1 percent above June 2012. Spending on public homebuilding was at a rate of $6.1 billion.

The seasonally adjusted annual rate of sales welled 8.3 percent in June to 497,000, according to a report from the Census Bureau and HUD. Economists surveyed by Bloomberg expected June sales to increase to 484,000 from May's originally reported 476,000. The median price of a new home fell 5.0 percent in June to $249,700, the third time the median price has dropped in the last four months. At the same time, May's median price was revised down to $262,800 from the originally reported $263,900.

In the last three months, confidence is up 16 points, or almost 40 percent. With giddy numbers like these, one would think builders would rush to break ground, but they're not.

Citing improvements in manufacturing, tourism, commercial and residential real estate and in the financial sector, the Federal Reserve said the nation's economy continued to increase at a modest to moderate pace from late May through early July.