A Brighter Forecast for Housing in 2011

The National Association of Realtors’ chief economist Lawrence Yun says the housing market has regained stability and expects further gains in 2011. Pointing to positive trends in the overall economy, as well as housing prices, sales, and affordability, Yun predicted existing-home sales will reach 5.5 million units next year, home prices will rise 1.0 percent, and GDP will be up 2.5 percent. Consumer confidence, business spending, and job growth are the keys to continued economic growth and recovery according to Yun. Also, NAR’s U.S. Economic Outlook for October forecasts a significant increase in sales in 2011 and continued improvements for residential construction. More here and here.

Filed under: Uncategorized, Foreclosures, Housing Market, Housing Starts, Prices, Real Estate, Sales, Views

Residential Construction Rises To 4-Month High

Housing starts rose 10.5 percent in August, reaching their highest level since April. The unexpected jump is a sign that the housing market is beginning to stabilize after the summer slump that followed the expiration of the homebuyer tax credit. According to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development, building permits and housing completions were also up in August. Stuart Miller, Lennar’s chief executive, said there’s been an increase in activity after a tough summer for the housing industry. More here, here, and here.

Filed under: Uncategorized, Building Permits, Federal Programs, Housing Market, Housing Starts, News, Real Estate, Tax Credit, Trends

Housing Starts Rise As Permits Fall

Housing starts rose a less-than-expected 1.7 percent in July while applications for building permits fell to their lowest level since May 2009, according to a report from The U.S. Census Bureau and the Department of Housing and Urban Development. Permits were down 3.1 percent from June and 3.7 percent from last year. Year-over-year, housing starts fell 7 percent. The drop in building permits coincides with a report from The National Association of Home Builders showing builder confidence at its lowest level since March 2009. David Crowe, NAHB’s chief economist, said the report reflects the frustration builders are feeling regarding the effects foreclosed property sales are having on the new-homes market. Still, the NAHB feels that a combination of modest job gains, low mortgage rates, and pent-up demand will lead to a stronger housing market in the second half of 2010. More here, here, and here.

Filed under: Uncategorized, Builder Confidence, Building Permits, Foreclosures, Housing Market, Housing Starts, News, Real Estate, Sales, Trends

Housing Starts Down, Building Permits Up

Housing starts fell 5.0 percent in June, hitting their lowest level since October 2009. But though the Department of Commerce’s residential-construction statistics show the second-straight month of declines in privately owned housing starts, they also show a 2.1 percent rise in building permits. The unexpected jump in permits suggests a boost for building activity in July. Michael Gaspen, an economist at Barclays Capital, said the market is trying to find a bottom following the expiration of the tax credit but he still expects housing starts to slowly rebound in the second half of the year. More here, here, and here.

Filed under: Uncategorized, Building Permits, Federal Programs, Housing Market, Housing Starts, News, Real Estate, Trends