As we continue to face headwinds related to available inventory, there was favorable news This Week in Real Estate with respect to builder confidence, housing starts and permit issuance. Below are a few highlights from the second full week of June that influences our business:
* Builder Confidence Rises in June. After holding steady for the past four months, builder confidence in the market for newly constructed single-family homes rose two points in June to a level of 60 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This marks the highest reading since January 2016. Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted gains in June. The component gauging current sales conditions rose one point to 64, the index charting sales expectations in the next six months increased five points to 70, and the component measuring buyer traffic climbed three points to 47. The West rose one point to 68.
Full Story… http://eyeonhousing.org/2016/06/builder-confidence-rises-in-june/
* Housing Production Holds Steady in May. Nationwide housing starts were virtually unchanged in May, inching down 0.3 percent to a seasonally adjusted annual rate of 1.16 million, according to a newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance edged up 0.7 percent to a seasonally adjusted annual rate of 1.14 million. “Builder confidence rose this month and single-family housing starts are up roughly 10 percent from a year ago – two indicators that we can expect further growth in housing production this year,” said NAHB Chief Economist Robert Dietz. “However, builders continue to face supply-side constraints, such as shortages of buildable lots and labor.” Single-family housing starts inched up 0.3 percent to a seasonally adjusted annual rate of 764,000 units in May while multifamily production edged down 1.2 percent to 400,000 units. Combined single-family and multifamily starts were up 14.4 percent in the West and permit issuance increased 15.3 percent in the West.
Full Story… http://www.nahb.org/en/news-and-publications/press-releases/2016/06/housing-production-holds-steady-in-may.aspx
* U.S. Foreclosure Activity Down Less Than 1 Percent in May. There were a total of 100,841 properties with foreclosure filings in May, virtually unchanged from previous month and down 21 percent from a year ago – the eighth consecutive month with a year-over-year decrease, according to data released today by RealtyTrac. A total of 42,279 properties started the foreclosure process in May, down 3 percent from the previous month and down 18 percent from a year ago – the 11th consecutive month with a year-over-year decrease. A total of 34,014 bank repossessions (REO), up 1 percent from the previous month but still down 24 percent from a year ago – the third consecutive month with a year-over-year decrease.
Full Story… http://www.realtytrac.com/news/foreclosure-trends/may-2016-foreclosure-activity/