High Demand & Builder Confidence Fuel New Home Permits.
The U.S. Census Bureau and HUD reported, this week in real estate, that permits for single-family homes in January increased 3.8% over the prior month and up 29.9% compared to January 2020. Coupled with already high builder confidence, which has increased an additional point this month, the new construction sector is positioned to capitalize on strong demand as the market transitions to spring. Below are a few newsworthy events from the third week of February that influence our business:
Permitting Soars as Builders Prep for Spring.
While the U.S. Census Bureau and the Department of Housing and Urban Development report that housing starts were down in January, typically the case in winter, housing permits were issued at what is probably a post housing crisis high. Single-family permits were estimated at 1,269,000, a 3.8 percent increase over December’s revised (from 1,226,000) estimate of 1,223,000 and up 29.9 percent year-over-year. Permits in the West were up 11.7 percent from December and 25.9 percent from a year earlier but starts declined from both earlier periods, by 11.4 percent and 9.2 percent, respectively. Completions decreased 11.5 percent and 21.4 percent. Full Story…
Buyers Snatch Up New Listings as Quickly as They’re Available.
Existing-home sales rose 0.6% in January compared to December 2020 and are up nearly 24% over a year ago, the National Association of REALTORS reported Friday. All four major regions of the U.S. recorded double-digit annual gains for home sales in January. “Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” said Lawrence Yun, NAR’s Chief Economist and Senior Vice President of Research. Seventy-one percent of homes sold in January were on the market for less than a month, according to NAR’s report. “Home sales are continuing to play a part in propping up the economy,” Yun says. “With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.” Yun predicts employment to increase, which could spur even more homebuying over the coming months. He predicts existing-home sales to reach at least 6.5 million in 2021. Existing-home sales in the West fell 4.4% compared to a month earlier but are still up 21.3% compared to January 2020. Median price: $461,800 – up 16.1% from a year earlier. Full Story…
Builder Confidence Remains High in North America.
The National Association of Home Builders latest NAHB/Wells Fargo Housing Market Index released this week, strong U.S. buyer demand helped offset supply chain challenges and a surge in lumber prices as builder confidence in the market for newly-built single-family homes inched up one point to 84 in February 2021. “Demand conditions remain solid due to demographics, low mortgage rates, and the suburban shift to lower-cost markets, but we expect to see some cooling in growth rates for residential construction in 2021 due to cost factors, supply chain issues, and regulatory risks,” said NAHB Chief Economist Robert Dietz. Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 78, the Midwest fell one point to 81, the South dropped two points to 84 and the West posted a two-point loss to 93. Full Story…
Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.
