Google

Housing Starts Blow by Expectations

Feb 18, 2018 by

Home-building activity blew by expectations in January, with housing starts up 9.7 percent to a rate of 1,326,000, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). Single-family housing starts increased 3.7 percent to 846,000. Starts for units in buildings with five units or more came in at 431,000.

Additionally, permits increased 7.4 percent from December to 1,396,000, according to the data. Single-family permits were down 1.7 percent, however, to 866,000, while permits for units in buildings with five units or more came in at 479,000.

Completions totaled 1,166,000 in January, falling 1.9 percent. Single-family completions increased 2.2 percent to 850,000, while completions for units in buildings with five units or more came in at 305,000.

“Terrific news on housing starts in January with a solid 10 percent gain,” said Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), in a statement. “This rise in single-family housing construction will help tame home price growth, and the increase in multi-family units should continue to help slow rent growth. The large gain in housing starts in the West (10.7 percent) is especially welcomed, as that region has been facing acute housing shortages. Ultimately, there is still large room for improvement given the fact overall housing inventory is currently near historic lows.”

According to Yun, the ascent could cause the Federal Reserve to hit pause on rates. It will announce its decision to hold or raise them in March.

“This boost in housing supply not only helps the economy but may also help the Federal Reserve temper the pace of future short-term rate hikes,” Yun said. “That’s because the slow upward creep in the broad consumer price inflation is principally being driven by rising housing costs. Simply put, more housing supply means a lower inflation rate, and potentially a slower pace of interest rate increases by the Fed.”

For the latest real estate news and trends, bookmark RISMedia.com.

The post Housing Starts Blow by Expectations appeared first on RISMedia.

RISMedia

read more

Assessing the State of the Housing Union

Jan 28, 2018 by

In 2018, the challenge for the housing industry will be balancing bursting demand with a severe shortage of supply, according to realtor.com®’s State of the Housing Union, released in-step with the U.S. State of the Union this week. As with 2017, first-time buyers will have the hardest time, with little in their price point.

“The macro-factors that have defined real estate in recent years—strong demand and weak supply—continue to set the tone for the industry,” says Joseph Kirchner, senior economist for realtor.com.

The issues? Builders have been burdened by construction costs and lack of labor, and have concentrated on higher-priced homes.

“Builders will need to focus more on homes geared for moderate incomes, partner with the government on initiatives to transform distressed urban neighborhoods and overcome labor shortages through a combination of workforce development training and pressure to ease artificial restrictions on the supply of labor,” Kirchner says.

The dearth of inventory made prices rise, but sales struggle in 2017, according to data from realtor.com. Appreciation was at an average 5.8 percent, while pre-owned sales eked out a 1.1 percent gain. Comparing blue and red states:

R3-22836-StateofHousingUnion

A factor of significance: tax reform. In 2017, 2.5 percent of blue state mortgages were over $ 750,000—the limit on the mortgage interest deduction (MID) under the Tax Cuts and Jobs Act, which will apply to loans obtained on or after Dec. 15, 2017. Only 0.4 percent of red state mortgages were over the threshold.

“The new tax law that caps the mortgage interest deduction and the deductibility of state and local taxes can be expected to impact the upper-end market in 2018—precisely how and the extent of which remain to be seen,” says Kirchner.

Around the bill’s passage, realtor.com researchers surveyed Americans on their attitudes toward homeownership in light of reform. More than one-third were “concerned;” a considerable group of homebuyers and sellers reconsidered their plans.

For more information, please visit www.realtor.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post Assessing the State of the Housing Union appeared first on RISMedia.

RISMedia

read more

Confidence in Housing Subdued at Year-End

Jan 13, 2018 by

Confidence in housing was subdued in December in the Fannie Mae Home Purchase Sentiment Index® (HPSI), derived from Fannie Mae’s National Housing Survey® (NHS). The HPSI overall posted 85.8 in December, two percentage points lower than the month prior.

“Consumers remained cautious in their housing outlook at the end of 2017, as tax reform discussions continued,” says Doug Duncan, chief economist and senior vice president at Fannie Mae. “In December, mirroring the other major consumer sentiment benchmarks, the HPSI reflected this caution and declined slightly.”

The share of homebuyers surveyed for the Index who believe now is a good time to buy fell five percentage points to 24 percent, while the share of sellers who believe now is a good time to sell stayed the same at 34 percent. The share of those who believe home prices will go up fell two percentage points to 44 percent.

Source: Fannie Mae

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post Confidence in Housing Subdued at Year-End appeared first on RISMedia.

RISMedia

read more

2018 Rate and Housing Outlook with Barry Habib – Replay

Jan 8, 2018 by

There was a technical issue of the original release of this show last Wednesday, so we are re-releasing it today if you missed it.

The post 2018 Rate and Housing Outlook with Barry Habib – Replay appeared first on National Real Estate Post.

National Real Estate Post

read more

Related Posts

Share This

Sitio web optimizado por: Posicionamiento en Google
Plugin Modo Mantenimiento patrocinado por: Wordpress modo mantenimiento