News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Kris Hudson / The Wall Street Journal / September 18, 2013
Home builders got a double boost on Wednesday from a report of resilient construction of single-family homes in August and the Federal Reserve’s decision to continue efforts to boost the economy and keep interest rates low.
Still, many housing-market observers see signs of a continued slowdown in price increases for new homes and possibly for new-home sales as well.
The Fed’s decision Wednesday afternoon to maintain its quantitative easing program for keeping interest rates low helped push the Dow Jones U.S. Home Construction Total Return Index to a 5.9% gain by the end of Wednesday.Read More
John McManus / BIG BUILDER / September 18, 2013
Census Bureau data on housing starts and new residential building permits hit the wires this morning, and you don’t get too far into any expert’s explanation of the fresh crop of data before the term “mixed signals” surfaces. Offsetting positives vs. negatives; stressors vs. catalysts; headwinds vs. tailwinds; fundamentals vs. technicals; buzz vs. the trenches are a fact of home building and development’s life.
* Here Calculated Risk’s Bill McBride charts up the latest release in his inimitable way:
His kicker line is this:
“This was below
David Crowe / NAHB / September 19, 2013
Housing starts rose 0.9% in August pushed by a solid 7% increase in single-family starts and tempered by an 11% fall in multifamily starts. The single-family increase was broad; all four census regions showed increases ranging from 17.5% in the West to 2.3% in the South. Monthly multifamily starts have saw-toothed up and down for several months with four up months and four down months in 2013.
Housing permits demonstrated the same signal with single-family permits up 3% nationally and up or unchanged in every region. August single-family permits at 627,000 are the highest since May 2008. SimilarRead More
Nick Timiraos / The Wall Street Journal / September 16, 2013
For the past year, more U.S. housing markets have had the feel of a blowout flea-market sale.
Prices were low and financing—while hard to get—was cheap for those who could get it. Once it was clear prices had found a bottom, bidding wars broke out as buyers competed over a shrinking supply of homes to get a good deal.
That sent prices up—sharply, in many markets—and for a while, buyers didn’t much mind. Falling interest rates made it possible for buyers to offer slightly higher prices without raising their monthly ownership costs.
But now, mortgage rates are up by a full percentage pointRead More
Sam Ro / Business Insider / September 15, 2013
Former Treasury Secretary Larry Summers has pulled himself out of the running for Chairman of the Federal Reserve.
While this is likely to dominate headlines Monday, there are some big economic events to watch this week.
Here’s your Monday Scouting Report:
- Stand By For The Fed: When the Federal Reserve concludes its two-day Federal Open Market Committee (FOMC) meeting on Wednesday, economists expect to hear that the Fed is tapering its monthly purchases of $85 billion worth of Treasury and mortgage-backed bonds. This is something that Fed Chairman Ben Bernanke and