Tag Archives: Homebuilders

The housing recovery is strengthening and turning onto a sustainable path, Barclays said in a report Wednesday. According to the firm's U.S. Housing report, single-family housing starts are expected to trend upward, matching the strength of multi-family starts that has driven the housing recovery over the past year. Barclays also anticipates that home price indices will close out the year strong, suggesting a broadening and lasting recovery. The rising supply and steady sales pace of single-family starts apparently encouraged homebuilders.

Housing starts in June soared to their highest level since October 2008, surging 6.9 percent to 760,000, the Census Bureau and HUD reported jointly Wednesday. Housing permits dropped 3.7 percent to 755,000 giving back half of May's gain. At the same time, permits for May were revised up to 784,000 from the originally reported 780,000 and housing starts were revised up for both April and May, to 747,000 and 711,000 respectively from 744,000 and 708,000. Total housing completions in June rose to 622,000.

Builder confidence jumped six points in July to its highest level since March 2007, the National Association of Home Builders reported Tuesday. Economists had expected a modest one point increase in July. The six-point gain to 35 was the largest month-month gain since September 2002 when the confidence gauge rose eight points. The increase in the index was driven by a sharp gain in the outlook for sales six months out which rose 11 points in July to 44, the highest level since April 2007. The index is up 23 points since July 2011.

Renters and first-time homebuyers want more amenities in their first homes and generally feel a sense of optimism that outpaces the reality in a slowly recovering housing market ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a disconnect that could set the stage for the next housing crisis. Those are the findings that real estate company Trulia unveiled in an American Dream survey it released Wednesday. Of 86 markets in the 100 largest metro areas, 61 percent, or nearly two-thirds, of Americans believe that home prices will rise over the next year, according to the company.

After reaching 100 in May, the list of metropolitan areas with improving housing markets fell to 89 in June, according to the National Association of Home Builders/First American Improving Market Index. While the number of metros on the index dropped, a closer look shows high volatility, not a straightforward decline in improving markets. About half of last month's improving markets ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô 52 metros ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô maintained their improving status in June. The other 48 metros listed as improving markets in May fell off the list.

Housing permits soared in May to their highest level since September 2008, surging 7.9 percent to 780,000, the Census Bureau and HUD reported jointly Tuesday, but housing starts dropped 4.8 percent to 708,000 giving back all of April's gains. At the same time, permits for April were revised upward to 723,000 from the originally reported 715,000. April housing starts were also revised to 744,000, up from the originally reported 717,000 percent drop. Surveyed economists expected increases in both areas.

Builder confidence rose one point in in June to 29, its highest level since May 2007, the National Association of Home Builders reported Monday. The index for May, originally reported as 29 was revised down to 28. Economists had expected the index to be flat to the original report for May. The total index in June was up 16 points from June 2011, the strongest year-over-year gain since December 1998. The index has improved year-over-year for 12 straight months as it did from July 2009 through June 2010 before going into a five month swoon.

Despite the deteriorating situation in Europe, the United States housing market's recent gains should drive up stocks valuations for building products companies in the near future, Barclays said in a report Tuesday. Barclays├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó U.S. Building Products & Homebuilding report shows that valuations for building products stocks under the institution's coverage are in the lower half of their historical trading ranges, largely due to "fairly lackluster" first-quarter earnings caused by lag between home purchases and building products sales. Financial crises in the euro zone are also driving down building products stocks.

Housing permits dipped in April for the first time in four months, the Census Bureau and Department of Housing and Urban Development reported jointly Wednesday but housing starts improved. Both indicators remained far above year-earlier levels. The month-over-month increase in starts in April appeared still larger because of a downward revision to March's report. Economists surveyed by Bloomberg expected permits to drop month-over-month and starts to increase over the same time.

Builder confidence jumped five points in in May to 29, its highest level since the same month in 2007, the National Association of Home Builders said Tuesday. Economists had expected the index to edge up to 26 in May. The month-over-month increase was the largest since April 2009. The total index in May was up 13 points from May 2011, the strongest year-over-year gain since April 2004. All three components of the index ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô current sales, sales six months out and buyer traffic ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô showed strong increases in May.