Tag Archives: Homebuilders

Despite soaring builder confidence, new housing permits and starts fell in June, with new construction falling to the lowest level in 10 months, the Census Bureau and HUD reported Wednesday. The seasonally adjusted annual rate of new housing permits tumbled 7.5 percent--the largest month-over-month decline since January 2011--while starts fell 9.9 percent, the second-largest drop since February 2011. Builders completed homes at an annual adjusted pace of 755,000 in June, 6.3 percent more than May.

After surging in June, the National Association of Home Builders' (NAHB) Housing Market Index (HMI)--a measure of builder confidence--shot up again in July, climbing six points to 57, its highest reading since January 2006, the group reported Tuesday. The two-month 13-point gain was the strongest two-month increase since January-February 1992, when the index improved 14 points. All three of the HMI components increased for the third month in a row.

A report released Monday by the Census Bureau revealed an estimated annual rate of $874.9 billion (seasonally adjusted) for construction spending in the month of May 2013. Private residential construction spending was at a seasonally adjusted rate of $322.3 billion, 1.2 percent higher than the $318.5 billion revised April estimate. The month's nonresidential construction spending showed an annual rate of $238.1 billion, down 1.4 percent from the revised April estimate of $287.1 billion.

According to a survey conducted by the Federal Reserve Bank of Atlanta, a huge majority of brokers in the region observed an increase in sales in May, with 40 percent saying numbers were up "slightly" over last year and another 44 percent saying sales were up "significantly." Builders also indicated sales were stronger than last year, with 38 percent reporting slight increases and 33 reporting significant improvements. However, builders noted that sales growth had slowed from April.

The price of a new single-family home dropped 3.2 percent in May, but sales increased 2.1 percent to 476,000, the highest level in almost five years.

Fitch Ratings noted that while a deficit in workers may not lead to "disastrous national numbers for housing," it may put a damper on the recovery.

An increase in prices itself does not signal a bubble. An unsustainable increase, not supported by other data, however, would.

Builder confidence surged eight points in June to 52, its highest reading since March 2006, the National Association of Home Builders (NAHB) reported Monday. It was the first positive (above 50) reading for the association├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Housing Market Index (HMI) since April 2006. Two of the three components of the index--builder assessment of current sales and of sales six months in the future--were also positive. The current sales index rose eight points to 56, and the future sales index jumped nine points to 61.

After falling in April and May, the National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) resumed its upward trend in June, NAHB reported. According to the association, the number of U.S. housing markets showing sustained growth in housing permits, home prices, and employment rose to 263 in June, five more than May's total. The index grew for several months to a record high of 274 in March before falling to 273 in April and then 258 in May.

While it├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós no secret that the recovering job market has helped to lift housing, a study from CareerBuilder shows the benefits work both ways.