![]() ![]() More information on housing statistics is also available at Housing Economics PLUS (formerly ). ![]() Looking at the three-month moving averages for regional HMI scores, the, the Midwest edged up two points to 39, the South increased three points to 52 and the West moved three points higher to 41. The HMI index gauging current sales conditions rose five points to 56, the component charting sales expectations in the next six months increased seven points to 57 and the gauge measuring traffic of prospective buyers increased two points to 33. 54% offered some type of incentive to bolster sales in May, down from 59% in April and 62% last December.ĭerived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” 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.Īll three major HMI indices posted gains in May.The average price reduction remains at 6%, unchanged for the past four months.The share of builders reducing home prices dropped to 27% in May, down from 30% in April, 31% in Feb.With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”Īnd with interest rates more than doubling from 2021, the HMI survey shows incentives have played a key role in attracting buyers in this new economic climate and that the use of these sales inducements are gradually slowing across the board: It’s free and easy to use, our security is state-of-the-art and our 24/7 customer service is always available for whatever you need. Sign on for 24/7 account access to check balances, pay bills, transfer money, even open new accounts. That share from 2000-2019 was a 12.7% average. Online and mobile banking has just about everything you can do in a branch, without the branch. “In March, 33% of homes listed for sale were new homes in various stages of construction. “Lack of existing inventory continues to drive buyers to new construction,” said NAHB Chief Economist Robert Dietz. These include shortages of transformers and other building materials and tightening credit conditions for residential real estate development and construction brought on by the actions of the Federal Reserve to raise interest rates.” “While this is fueling cautious optimism among builders, they continue to face ongoing challenges to meet a growing demand for new construction. “New home construction is taking on an increased role in the marketplace because many home owners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala. This marks the fifth straight month that builder confidence has increased and is the first time that sentiment levels have reached the midpoint mark of 50 since July 2022. Known as the “global stocktake”, this assessment is likely to show that the world is far off track to reduce greenhouse gas emissions by the 43% this decade that is required to have a good chance of limiting temperature rises to 1.5C.Limited existing inventory, which has put a renewed emphasis on new construction, resulted in a solid gain for builder confidence in May even as the industry continues to face several challenges, including building material supply chain disruptions and tightening credit conditions for construction loans.īuilder confidence in the market for newly built single-family homes in May rose five points to 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This November, governments will meet for the Cop28 UN climate summit, where they will assess progress towards meeting the goals of the Paris agreement. In 2015, when the Paris agreement was signed, requiring countries to hold global temperature increases to no more than 2C above pre-industrial levels while “pursuing efforts” to hold them to 1.5C, it was forecast that the chance of temporarily exceeding the 1.5C threshold within the following five years was zero. The world has warmed considerably in recent years. Over the next five years, there is likely to be above-average rainfall in northern Europe, Alaska and northern Siberia, and the Sahel, according to the report.įor each year from 2023 to 2027, the global near-surface temperature is predicted to be between 1.1C and 1.8C above the pre-industrial average, taken from the years 1850 to 1900. That could have calamitous consequences for the planet, which relies on rainforests as massive carbon sinks. ![]()
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