Posts Tagged ‘NAHB Chief Economist David Crowe’

Higher Mortgage Rates Cause Pause, may Fuel more Home Sales soon

August 26th, 2013 Comments off

nahb-2-logo-posted-daily-business-news-manufactured-home-marketing-sales-management-mhpronews-com-The National Association of Home Builders (NAHB) tells MHProNews that sales of newly built, single family homes declined in July 13.4%, to a seasonally adjusted annual rate (SAAR) of 394,000 units. “The drop-off in sales in July is in part a reflection of buyers’ reaction to the recent uptick in mortgage rates as people reassess their budgets to determine how much house they can afford,” said Rick Judson, chairman of the NAHB. NAHB Chief Economist David Crowe said, “However, there is still a great deal of pent-up demand for homes in markets nationwide, and builders continue to report improving consumer interest. This suggests that what we’re seeing is a temporary pause, and that buyers will return to the market once they are confident that the higher mortgage rates are here to stay.” ##

(Image Credit: NAHB Logo)

Growth in New Single-Family Home Sales

October 26th, 2011 Comments off

MHProNews has learned that the U.S. Commerce Department reports newly-built, single-family home sales rose 5.7 percent in September, recording their best growth in five months, to a seasonally-adjusted rate of 313,000 units. “The improved rate of new-home sales in September is on par with NAHB’s forecast for the overall number of sales this year and in keeping with the spotty improvements that our latest builder surveys have highlighted in select markets,” said NAHB Chief Economist David Crowe. “While 313,000 is still an exceptionally low rate of new-home sales by historic standards, it is an encouraging sign of an anticipated broader recovery over the course of next year, and builders have helped the situation by keeping their inventories of homes for sale very lean in areas where there is an oversupply of existing units.” Regionally, the South showed the best new home sales gain at 11.2 percent, and the West had 9.7 percent. Meanwhile, the Midwest declined 12.2 percent, and the Northeast fell 4.2 percent. The 163,000 inventory of new homes for sale in September is a record low, representing a 6.2 month supply at the current pace.

(Graphic credit: NAHB)

NAHB Monthly Survey of Builders Shows Gains

October 19th, 2011 Comments off

The National Association of Home Builders (NAHB) reports that confidence among home builders for single-family dwellings rose four points to 18 on the NAHB/Wells Fargo Housing Market Index (HMI), the largest monthly increase since the tax credit program of April 2010. Based on builders’ perceptions of current home sales and expectations for the next six months, the HMI survey is in its 20th year. A score above 50 indicates more builders consider conditions good rather than poor. NAHB Chief Economist David Crowe says, “It’s worth noting that while some builders have shifted their assessment of market conditions from ‘poor’ to ‘fair,’ relatively few have shifted their assessments from ‘fair’ to ‘good.’ One reason is that builders are facing downward pricing pressures from foreclosed homes at the same time that building materials costs are rising, and this is further squeezing already tight margins.” Regionally, the West scored the best, gaining nine points to 21, that regions best HMI score since Aug. 2007. The Midwest and South each gained four points, while the Northeast was unchanged. In a related development, the U.S. Commerce Department says housing starts rose 15.7 percent in September to a seasonally-adjusted rate of 658,000 units, the largest increase in a year and a half. The increase is due largely to multi-family starts.


Market for New Homes Still Flat on the Ground

September 19th, 2011 Comments off

The National Association of Home Builders (NAHB) says its monthly survey of builders’ confidence in the new home market showed a decline of one point from August’s rating of 15. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) has not gone above 16 nor dropped below 13 in six straight months, indicating very little change in builders perception of the market for the year. (A rating of 50 or above indicates builders are more confident than not.) NAHB Chairman Bob Nielsen said, “Both builder and consumer confidence took a hit in recent weeks with the market disruptions caused by the S&P downgrade and congressional gridlock on the budget deficit.” Added NAHB Chief Economist David Crowe, “”While some bright spots are beginning to emerge in about a dozen select metro areas, the broader picture remains fairly bleak due to the weak economy and job market.” Now in its 20th year, the survey is based upon builders’ current work and expectations for the coming six months. Regionally, only the Midwest gained, increasing one point to 11. The Northeast, South and West all saw 2-3 point declines.

Survey Says Builders’ Expectations for New Home Construction Flat

May 16th, 2011 Comments off

The National Association of Home Builders (NAHB) says builders’ confidence in the market for new single-family dwellings has not changed in six of the last seven months, according to the NAHB/Wells Fargo Housing Market Index (HMI).  Said NAHB Chief Economist David Crowe, “Asked to identify reasons that potential customers are holding back at this time, 90 percent of builders surveyed said clients are concerned about being able to sell their existing home at a favorable price, while 73 percent said consumers think it will be difficult for them to get financing.  Clearly, access to credit for both builders and buyers remains a considerable obstacle to the revival of the new-homes market.”  The survey has been ongoing for the past 20 years.