Today's Home Improvement Industry News from thehardfax.com and ahma.org

Housing Starts Down 30%
The U.S. Census Bureau and the Department of Housing and Urban Development have announced the following new residential construction statistics for July 2008:
    Privately-owned housing starts in July were at a seasonally adjusted annual rate of 965,000.  This is 11.0 percent below the revised June estimate of 1,084,000 and is 29.6 percent below the revised July 2007 rate of 1,371,000.
    Single-family housing starts in July were at a rate of 641,000; this is 2.9 percent below the June figure of 660,000.
    Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 937,000.  This is 17.7 percent below the revised June rate of 1,138,000 and is 32.4 percent below the revised July 2007 estimate of 1,386,000.
Single-family authorizations in July were at a rate of 584,000; this is 5.2 percent below the June figure of 616,000. 
    The full report from DoC is here.

California Adopts Green Code for All New Construction
8.8.08        The California Building Standards Commission has adopted a green building code for all new construction in the state as part of a package that is the first of its kind in the nation.
Adherence to the California Green Building Standards Code will be voluntary until 2010, when its provisions are expected to become mandatory.
The code sets targets for energy efficiency, water consumption, dual plumbing systems for potable and recyclable water, diversion of construction waste from landfills and use of environmentally sensitive materials in construction and design.
More information is here.

Existing-Home Sales Set for Rebound Based on Contracts
8.7.08        “Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill,” according to the latest forecast by the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.
Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range.  “The vacillation of data from one month to the next indicates a housing market in transition,” he said.  “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery.  With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”
    The full press release is here.

Housing Affordability Slipping as Prices Begin to Rise
8.31.08        Housing affordability in the country fell to an Index of 119.2 in June from 125.7 in May, according to the latest Housing affordability Index from the National Association of Realtors.  The Index indicates that a family with a median income has 119.2 percent of the income necessary to qualify for a mortgage on a median-priced existing single-family home at prevailing interest rates.
    The report also shows, surprisingly, that the median price of an exiting home has been rising since March.
The value of a median priced home was at $229,200 in June 2007, declined to a low of $193,600 in February of 2008 and has risen 10 percent in four months to $213,800 in June of 2008.
The full report is here.

New Home Sales Down 0.6%
7.25.08        Sales of new one-family houses in June 2008 were at a seasonally adjusted annual rate of 530,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 0.6 percent below the revised May rate of 533,000 and is 33.2 percent below the June 2007 estimate of 793,000.
The median sales price of new houses sold in June 2008 was $230,900; the average sales price was $298,600.  The seasonally adjusted estimate of new houses for sale at the end of June was 426,000.  This represents a supply of 10.0 months at the current sales rate.
Some encouraging data within the overall totals:  New home sales increased slightly in both the Northeast and Midwest.  And the total number of new homes for sale (inventory on the market) decreased to 426,00 in June from 450,000 in May.
The full report is here.

Existing-Home Sales Fall Again
7.24.08        Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 2.6 percent to a seasonally adjusted annual rate of 4.86 million units in June from a pace of 4.99 million in May, and are 15.5 percent lower than the 5.75 million-unit rate in June 2007.
Total housing inventory at the end of June rose 0.2 percent to 4.49 million existing homes available for sale, which represents an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May.
The national median existing-home price for all housing types was $215,100 in June, down 6.1 percent from a year ago when the median was $229,000.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.32 percent in June from 6.04 percent in May; the rate was 6.66 percent in June 2007.
Single-family home sales declined 3.2 percent to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8 percent below the 5.01 million-unit pace in June 2007.  The median existing single-family home price was $213,800 in June, which is down 6.7 percent from a year ago.
Regionally, existing-home sales in the West rose 1.0 percent in June to a pace of 1.03 million but are 6.4 percent lower than a year ago.  The median price in the West was $288,400, which is 17.2 percent below June 2007.
In the South, existing-home sales fell 3.1 percent to an annual rate of 1.85 million in June, and are 18.1 percent below June 2007.  The median price in the South was $185,300, down 2.4 percent from a year ago.
Existing-home sales in the Midwest declined 3.4 percent to an annual pace of 1.12 million in June, and are 17.6 percent below a year ago.  The median price in the Midwest was $175,300, up 2.8 percent from June 2007.
In the Northeast, existing-home sales fell 6.6 percent to an annual rate of 850,000 in June, and are 15.8 percent below June 2007.  The median price in the Northeast was $256,700, down 12.6 percent from June 2007.
    The full report is here.

Better Homes and Gardens Launching Real Estate Site
7.23.08        Better Homes and Gardens Real Estate today is launching an online consumer website at http://www.bhgrealestate.com/.
"The Better Homes and Gardens Real Estate Web site was designed to help make the online real estate experience a more rewarding one for homebuyers and sellers.  Beginning with our brand name and our unique relationship with the Better Homes and Gardens magazine brand and its array of consumer marketing resources, we are committed to the delivery of exceptional residential real estate services to our customers,” the company said in a press release.
The site will launch with more than 300,000 property listings and hopes to expand rapidly.

Hope for Housing, Survey Says
7.18.08        Nearly half of all home buyers (44%) believe the housing market will improve once the new President takes office in January, 2009, according to a survey released this week conducted by Harris Interactive and commissioned by Move, Inc.
Forty-eight percent of women and 41 percent of men who plan to buy a home in the current market said they think the housing market will get better once the new President is in office.
At the same time, 81 percent of home buyers are still nervous about the current housing market and report the existence of barriers between them and home ownership.  Today's home buyers perceive the cost of a down payment (28%), their annual income level (20%), lack of confidence in the economy (26%) and high home prices (31%), especially in the Western states (39%) as barriers to buying a home.
Despite these reservations, the survey indicates underlying demand for homeownership is healthy.  While nearly half (41%) of current homeowners do plan to purchase a home again, 80 percent of all renters plan to purchase a home someday with 47 percent planning to purchase a home within the next five years.  More people who plan to move will do so for space-related (26%) and life-stage change reasons (17%), such as having children (2%) or downsizing to a smaller residence (9%), not financial ones including an increase in rent (2%) or an expensive mortgage (less than 1/2%).
    The full press release is here.

Builder Confidence in Housing Market Hits Record Low
7.17.08        Builder confidence in the market for newly built single-family homes fell for a third consecutive month in July, according to a press release from the National Association of Home Builders (NAHB).  The NAHB Housing Market Index (HMI) fell below its previous record low of 18 in June to a new record low of 16 in July, with each of its three component indexes also hitting record lows.
    The press release from NAHB:
“The worsening housing slump and the near-meltdown in financial markets last week makes it even more urgent for Congress to complete action on the housing bill now, a move that will help stabilize and restore confidence in housing and the U.S. economy,” said NAHB President Sandy Dunn, a home builder from Point Pleasant, W.Va.
A housing stimulus bill now being considered in Congress would provide a temporary tax credit of up to $8,000 for first-time home buyers, helping to stimulate sales, reduce the inventory of unsold homes on the market, stabilize house prices and arrest the rapid deterioration of mortgage credit quality.
“Builders are reporting that traffic of prospective buyers has fallen off substantially in recent months,” said NAHB Chief Economist David Seiders. “Given the systematic deterioration of job markets, rising energy costs and sinking home values aggravated by the rising tide of foreclosures, many prospective buyers have simply returned to the sidelines until conditions improve,” he said. “An $8,000 tax credit, made available for a limited time, could be just the incentive needed to draw them into the game, and a policy-induced pickup in home sales could gain momentum further down the line.”
Derived from a monthly survey that NAHB has been conducting for more than 20 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 sales conditions as good than poor.
Each of the HMI’s component indexes fell to new record lows in July. The index gauging current sales conditions declined one point to 16, the index gauging sales expectations in the next months fell four points to 23, and the index gauging traffic of prospective buyers also receded four points, to 12.
All but one region showed declines in builder confidence in July. The Midwest declined six points to 10, its lowest HMI score since the regional detail was introduced in December of 2004, while the West matched a record low set in January 2008 with its three-point decline to 13. The South posted a one-point decline to 20. The Northeast was the only region to post a gain in July’s HMI, rising two points to 14 from the previous month’s record low of 12.
    The press release on the web is here.

Pending Home Sales Index Falls 4.7%, NAR Predicts Gradual Recovery Through 2009
7.8.09        The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5, according to a report released today by the National Association of Realtors (NAR).
Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected.  “The overall decline in contract signings suggests we are not out of the woods by any means.  The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.
Yun said location has never mattered more than in the current market.  “Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half.  Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.”
Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009.  NAR’s housing affordability index is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008.
Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter.  For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million.
The aggregate median existing-home price is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.
New-home sales are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000.  “In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into 2009,” Yun said.  Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9.0 percent in 2009 to 879,000.
The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.
Growth in the U.S. gross domestic product (GDP) is seen at 1.6 percent in 2008 and 1.4 percent next year.  The unemployment rate should average 5.4 percent this year and 5.8 percent in 2009.
Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009.  Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.
    The full press release is here.

Housing Affordability Remains At Favorable Levels
7.7.08        A typical family in the U.S. has 125.4 percent of the income necessary to afford a median priced single-family home, according to the latest National Association of Realtors Housing Affordability Index.
    The Index, released last week, indicates that the median priced existing single-family home is selling for $206,700, down from $221,900 a year ago.  Mortgage rates have dropped to 6.10 percent from 6.43 percent in May of 2007.  The median family income in the country has risen from $59,021 a year ago to $60,294 in May of this year.
    In May of 2007, the Index stood at 110.4.
    Regionally, affordability as of May 2008 was at 104.0 in the Northeast, 162.8 in the Midwest, 135.1 in the South and an unfavorable 92.6 in the West.
    The full chart on the Index is here.

Home Sales Rise in May
7.7.08        Existing-home sales increased in May with buyers responding to lower home prices, according to the National Association of Realtors.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate 1 of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said buyers are seeing value in the current housing market.  “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said.
The full press release is here.

New Home Sales Down 40% from Year-Ago Levels
6.25.08        Sales of new one-family houses in May 2008 were at a seasonally adjusted annual rate of 512,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 2.5 percent below the revised April rate of 525,000 and is 40.3 percent below the May 2007 estimate of 857,000.
The median sales price of new houses sold in May 2008 was $231,000; the average sales price was $311,300.
The seasonally adjusted estimate of new houses for sale at the end of May was 453,000.  This represents a supply of 10.9 months at the current sales rate.
    The full press release from DoC is here.

Home Builders Remain Pessimistic on Prospects
6.23.08        Builder confidence in the market for newly built single-family homes edged down in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).  The index slipped to 18 this month, returning to the record low that was posted in December of 2007 (the series began in January of 1985).
“Clearly, conditions in the housing market remain very weak, and our builder members are not seeing any signs of improvement,” noted NAHB Chief Economist David Seiders.  “Indeed, the continuing erosion of employment and consumer confidence/sentiment, coupled with surging energy costs, falling house prices and rising home mortgage foreclosures, pose considerable downside risks to the economy and our housing forecast.  A targeted stimulus such as a temporary home-buyer tax credit would help turn this situation around and restore housing as an engine of economic growth.”
    The full press release is here:
http://www.nahb.org/news_details.aspx?sectionID=0&newsID=7319

Housing Starts Fell in May
6.17.08        Housing starts in May fell 3.3 percent from April to a seasonally adjusted annual rate of 975,000 and are currently 32.1 percent off the pace of 1,436,000 in May 2007, according to the latest report from the Department of Commerce released today.
    New building permits in May were a an annual rate of 969,000, 1.3 percent below the April level and 36.3 percent below year-ago levels.
    The full report from DoC is here.

NAHB Calls for Homebuyer Tax Credit
6.13.08        The National Association of Home Builders (NAHB) last week called on Congress to create a temporary homebuyer tax credit along with other important tax measures to boost the faltering housing market and economy.
“House prices and inventories obviously are central to the outlook for the economy and the financial markets,” Joe Robson, first vice president of NAHB and a homebuilder from Tulsa, Okla., told members of the House Small Business Committee.  “Policies that stimulate home purchases in the immediate future can pay huge dividends and a temporary home buyer tax credit provides the most bang for the buck.”
Robson added that the recent revival of interest among prospective buyers suggests that temporary credits could stimulate a wave of home buying that could quickly reduce excess supply in housing markets and halt the dangerous erosion of house prices and mortgage credit quality.
H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008, contains a provision that would provide a temporary, first-time homebuyer tax credit of $7,500 for the purchase of any home used as a principal residence and closed on between April 9, 2008 and April 1, 2009.
“NAHB believes that the home buyer credit model in H.R. 3221 would help address many elements of the current housing crisis,” said Robson.  “The tax credit would increase home sales, which would cause inventories to fall and stabilize home prices and mortgage markets.  NAHB would urge Congress to consider options for increasing the size of the credit to maximize its impact and effectiveness.”
The full press release is here.

Hope for Home Sales
6.10.08        “A modest gain in the level of home sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages,” according to the latest forecast by the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March.  It’s the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5.
Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops.  “Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he said.
The full press release and report is here:

U.S. Housing Prices Down 7%
6.2.08        Global Insight today released its first quarter 2008 update of “House Prices in America” report, showing that single-family home prices fell for the third straight period, dropping at a 6.7 percent annualized rate.  Nationwide, 262 housing markets out of 330 in the study experienced declines, accounting for 84 percent of all housing units and 89 percent of real estate value.
“House prices are being pushed down across the nation by fewer high-priced home sales and an abundance of foreclosed properties being sold at discount.  Contributing to the downward pressure are significantly tighter credit standards which are reducing the amount of borrowing available for home purchases,” according to a press release.
The full report is here.

Housing Market Strong and Growing in Canada
6.2.08        Unlike the current slowdown in the housing market in the U.S., the housing market up north in Canada remains very robust.  The total value of residential construction investment reached C$19.8 billion in the first quarter of 2008, an increase of 7.5 percent compared with the first quarter of 2007, according to a report this morning by Statistics Canada.  Increases were seen in most provinces and for the three components of residential construction (new housing construction, renovations and acquisition costs.
“The favourable job situation, growth in disposable income, flexible financing options and the strength of the economy in Western Canada continued to support the demand for housing. The increase in investments depends upon the rise in the price of houses. The New Housing Price Index (house-only component) increased by 6.0 percent in the first quarter of 2008 compared with the same quarter in 2007,” according to the report.
The full report is here.

Housing Affordability Remains at Very Favorable Level
5.30.08        Housing affordability remains at very favorable levels in the country, according to the latest Housing Affordability Index released this week by the National Association of Realtors.
    The Index for April stands at 129.8, meaning a typical family with a median income in the country has 129.8 percent of the income needed to qualify for a mortgage at prevailing interest rates to purchase a median-priced home.
    In April 2007, the Index was 112.4 and in March 2008 it was 130.6.
    April’s report shows a median priced single-family home at $200,700; mortgage rates at 6.03 percent and median family income at $60,185.
    The full report is here.

Home Prices Continue Decline
5.27.08        Data released today by S&P/Case-Shiller indicates that the decline in the prices of single-family homes continued through the first quarter of 2008 with the firm’s Home Price Index showing a national decline of 14.1 percent versus the first quarter of 2007.
    The full report is here:.

Single-Family Home Sales Rise
5.27.08        Sales of new single-family houses in April 2008 were at a seasonally adjusted annual rate of 526,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 3.3 percent above the revised March rate of 509,000, but is 42.0 percent below the April 2007 estimate of 907,000.
The median sales price of new houses sold in April 2008 was $246,100; the average sales price was $321,000.  The seasonally adjusted estimate of new houses for sale at the end of April was 456,000. This represents a supply of 10.6 months at the current sales rate.
    The fill report from DoC is here.

Existing Home Sales Down 1% in April
5.23.08        Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 1.0 percent to a seasonally adjusted annual rate of 4.89 million units in April from an upwardly revised pace of 4.94 million in March, and are 17.5 percent below the 5.93 million-unit level in April 2007, according to a report from the National Association of Realtors (NAR) released today.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the good news is that mortgage restrictions have just been eased.  “In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their ‘declining market’ policies, effective June 1,” he said.  “This means consumers across the country will have access to safe, affordable financing with down payments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer.”
The full report is here.

Realtors Urge Congress to Take Action on the Housing Market
5.19.08        “A sound and dynamic real estate industry fosters communities and sustains and stimulates the national economy.” That was the message at the National Association of Realtors (NAR) Midyear Legislative Meetings & Trade Expo last week.
As an advocate for homeownership and housing issues, NAR believes Congress should act promptly to pass important housing stimulus legislation being considered in both the House and Senate.  NAR is advocating modernizing Federal Housing Administration programs, reforming overall regulation of the government-sponsored enterprises (Fannie Mae and Freddie Mac), establishing a first-time home buyer tax credit, and making the temporary increases to the conforming loan limits established by the Economic Stimulus Act of 2008 permanent, according to a press release.
The full press release is here.

Housing Starts Post Unexpected Increase in April
5.16.08        The Department of Commerce today announced that privately-owned housing starts in April were at a seasonally adjusted annual rate of 1,032,000.  This is 8.2 percent above the revised March estimate of 954,000, but is 30.6 percent below the revised April 2007 rate of 1,487,000.  Most economists were expecting a drop of 1 to 2 percent for the month.
Single-family housing starts in April were at a rate of 692,000; this is 1.7 percent below the March figure of 704,000.
Building Permits in April were at a seasonally adjusted annual rate of 978,000.  This is 4.9 percent above the revised March rate of 932,000, but is 34.3 percent below the revised April 2007 estimate.  Single-family authorizations in April were at a rate of 646,000; this is 4.0 percent above the March figure of 621,000. 
The full report is here.

Realtors Look for Improvement in Housing Over Summer
5.9.08        A flat pattern in home sales activity should continue for the next couple months before improving over the summer, according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. "Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas," he said. "As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available."
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9.

Existing-Home Sales Down 2%
4.23.08        Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate (1) of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007.  A rise in condo sales in March was offset by a drop in single-family sales.  Regionally, sales rose in the Northeast and West but fell in the Midwest and South.
Lawrence Yun, NAR chief economist, said the market is performing unevenly.  “Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he said.  “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”
The national median existing-home price for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400.  Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.
The full report is here.

Builder Confidence Index Remains Low
4.16.08        Builder confidence in the market for new single-family homes remained unchanged for a third consecutive month in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released yesterday. The HMI held at 20, up marginally from the record low of 18 set in December of 2007 (the series began in January of 1985).
“With the traditional home buying season now well underway, we have not seen the bump in sales activity that we normally would this time of year,” said Sandy Dunn, NAHB president and a home builder from Point Pleasant, W.Va.  “At this point, all eyes are on Congress and its efforts to craft meaningful legislation to help support the housing market and stabilize our nation’s economy before it heads deeper into recession.”
Derived from a monthly survey that NAHB has been conducting for more than 20 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 either “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 sales conditions as good than poor.
    The full press release is here.

NAHB Calls for Home Buyer Tax Credit to Bolster Economy
4.15.08        The National Association of Home Builders today issued a press release stating for the first time that the country is in a mild recession and that governmental actions are required to correct the situation:
     “The worse-than-anticipated housing downturn, combined with systematic weakening of the labor market and rapidly rising energy and food prices, has taken a heavy toll on American consumers,” said NAHB’s David Seiders. “It’s now clear that we have entered what we anticipate will be a mild recession, running through the first half of this year, and there are substantial downside risks to this economic scenario.”
To guard against a longer and deeper downturn, Seiders said that Congress should take immediate steps to stimulate the economy through actions specifically targeted at improving the ailing housing market -- such as a temporary home buyer tax credit, modernization of the Federal Housing Administration and oversight reform for the housing-related government sponsored enterprises.
“Stopping the downward trend in housing prices is key to bolstering consumer confidence as well as mortgage credit quality, and a temporary home buyer tax credit is the best way to do that,” he noted.
Given the ongoing erosion in housing finance markets and buyer demand, Seiders has adjusted NAHB’s official housing forecast to indicate continuing downward movement in housing starts through the end of 2008, bringing the decline for the year to 30 percent. A month ago, Seiders expected housing starts to bottom out in the third quarter, with a 27 percent decline for 2008.
“This change in our forecast indicates that, barring immediate action by Congress to stimulate housing and the economy, the housing sector will continue to be a serious drag on economic growth until the beginning of 2009,” Seiders said.
“Stimulus bills recently passed in the Senate and the House Ways and Means Committee are welcome steps in the right direction. This is one instance where prompt and appropriate efforts by the nation’s lawmakers could make a significant difference in limiting the depth and duration of the economic downturn.”


Pending Home Sales Fell 2% in February, Group Looks for Summer Rebound
4.8.08        “Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year,” according to the latest forecast by the National Association of Realtors released this morning.
Lawrence Yun, NAR chief economist, said the market will come into clearer focus this summer.  “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he said.  “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets.  The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6 from an upwardly revised reading of 86.2 in January, and was 21.4 percent lower than the February 2007 index of 107.6.  “The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,” Yun said.
    The full press release is here.

Housing Affordability Improves for 7th Consecutive Month
4.2.08        The combination of steadily decreasing home prices and declining mortgage rates, together with a slight increase in median family income, has led to a situation where the typical family in the U.S. has 135.2 percent of the income necessary to finance the purchase of a typical single-family home.
    The latest National Association of Realtors Housing Affordability Index, with preliminary data through February, shows a median priced single-family home in the country selling for $193,900.  In July of 2007, that home was selling for $228,500.  Last July, standard mortgage loans carried an effective rate of 6.80 percent.  In the past seven months, that rate has dropped to a national average of 5.94 percent.  Median family income during the same period of time has risen slightly to $59,967 from $59,292.
    Regionally, of course, affordability varies widely.  The Index is 107.6 for the Northeast, 193.3 in the Midwest, 145.5 in the South, and 93.5 in the West.
    The full chart, with data going back 13 months, is here.

New Home Sales Continue Slide
3.26.08        Sales of new one-family houses in February 2008 were at a seasonally adjusted annual rate of 590,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 1.8 percent below the revised January rate of 601,000 and is 29.8 percent below the February 2007 estimate of 840,000.
The median sales price of new houses sold in February 2008 was $244,100; the average sales price was $296,400.  The seasonally adjusted estimate of new houses for sale at the end of February was 471,000.  This represents a supply of 9.8 months at the current sales rate.
The full report can be downloaded as a PDF here.

Home Prices Down 11% from Year-Ago Levels
3.25.08        Data released this morning by Standard & Poor’s Case-Shiller Home Price Indices shows that through January 2008 home prices have declined 11 percent from year-ago levels.
“Unfortunately it does not look like early 2008 is marking any turnaround in the housing market, after the declining year recorded throughout 2007,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. “Home prices continue to fall, decelerate and reach record lows across the nation.”
“No markets seem to be completely immune from the housing crisis, with 19 of the 20 metro areas reporting annual declines in January and the remaining – Charlotte, North Carolina – eking out a benign 1.8 percent growth rate. Looking deeper into the data, you can see that 16 of the metro areas are also reporting record low annual growth rates.  The monthly data show that every one of the MSAs has now declined every month since September 2007, marking five consecutive months.  On top of that, the declines have increased through time, in general, as 13 of the 20 MSAs reported their single largest monthly decline in January.”
The full report is here.

Existing Home Sales Up 3%
3.24.08        Sales of existing homes increased in February and remain within a fairly stable range, according to a National Association of Realtors report released today.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007.  The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging.  “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said.  “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand.  As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500.  Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
    The full press release is here.

Standard Pacific Names CEO
3.24.08        Standard Pacific Corp. has announced that its Board of Directors elected lead independent director Jeffrey V. Peterson, 62, as Chairman, President and Chief Executive Officer.  The Board also announced that Stephen J. Scarborough has retired after 27 years with the company.

HIRI Conference to Focus on Housing Market
3.17.08        The Home Improvement Research Institute (HIRI) will hold its Spring Conference on Thursday, April 3, 2008 from 8:30 AM to 4:00 PM at the National Association of Home Builders headquarters in Washington, DC.
    The conference will focus on current trends in the home improvement industry with a special emphasis on the credit and financial situation in the country and its effect on housing and the broader home improvement market.
    The full conference agenda is here.

Home Prices Down 5%
3.5.08        Global Insight, an economic and financial analysis and forecasting company, yesterday released the fourth quarter 2007 update of House Prices in America, the U.S. housing-valuation analysis, showing “that single-family home prices continued to fall for the second period in a row and declined at a precipitous 5.1% annualized rate.  The declines were pervasive, affecting 291 of the 330 metropolitan areas in the study - the overwhelming majority of the nation's housing market.  As was the case last quarter, California, Florida and Michigan accounted for the most severe losses.  The 291 metro areas experiencing price declines account for 95% of all housing units and 97% of real estate value examined in the research.”
    The full press release is here.

Construction Spending Declines
3.3.08        The U.S. Census Bureau of the Department of Commerce announced today that construction spending during January 2008 was estimated at a seasonally adjusted annual rate of $1,121.5 billion, 1.7 percent below the revised December estimate of $1,140.4 billion.  The January figure is 3.3 percent below the January 2007 estimate of $1,160.2 billion.
    The full report is here.

Housing Affordability Improves
3.3.08        The National Association of Realtors Housing Affordability Index improved significantly in January to 130.3 from 123.0 in December, according to the most recent report released February 29.  The Index indicates that a family with a median income in the country has 130.3 percent of the money required to qualify for a standard mortgage on a median priced single-family home.
    The report shows the median price of a home at $198,700 nationally, mortgage rates at 6.04 percent, family income at $59,858 and qualifying income at $45,936.
    Regionally, the Index stands at 105.0 in the Northeast, 175.1 in the Midwest, 144.2 in the South and 88.6 in the West.
    The full report is here.

New Home Sales Fell Another 3% in January
2.27.08        Sales of new one-family houses in January 2008 were at a seasonally adjusted annual rate of 588,000, according to estimates released today by the U.S. Department of Commerce.  This is 2.8 percent below the revised December rate of 605,000 and is 33.9 percent below the  January 2007 estimate of 890,000.
    The full report from DoC is here.

Realtor Group Sees Home Sales Rising Later This Year
2.25.08        Existing-home sales fell 0.4 percent to a seasonally adjusted annual rate of 4.89 million units in January from an upwardly revised level of 4.91 million in December, and are 23.4 percent below the 6.44 million-unit pace in January 2007, according to a report today from the National Association of Realtors.
Lawrence Yun, NAR chief economist, said many potential buyers remain on the sidelines.  “Subprime loans and other risky mortgage products have virtually disappeared from the marketplace, and over the past five months, this has been reflected in soft but fairly stable home sales,” he said. “As the increased limits for FHA and conventional loans are implemented, more buyers will have access to safer FHA loans and lower interest rate loans in high-cost areas, which could lead to steadily higher home sales later in the year.”
    The full report is here.

Housing Starts Show Gain
2.21.08        Privately-owned housing starts in January were at a seasonally adjusted annual rate of 1,012,000, according to a report issued today by the Department of Commerce.  This is 0.8 percent above the revised December estimate of 1,004,000, but is 27.9 percent below the revised January 2007 rate of 1,403,000.
    Single-family housing starts in January were at a rate of 743,000; this is 5.2 percent below the December figure of 784,000.
    The full report from DoC is here.

NAHB Elects President
2.18.08        Sandy Dunn last week was elected as the 2008 president of the 235,000-member National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando.
Dunn is president of Point Pleasant, W. Va.-based B.J. Builders, Inc., a company founded by her father in 1953 that specializes in single-family, entry-level homes.
“Our primary objective in 2008 will be to work with the nation’s lawmakers and administration to implement policies that will resolve the credit crunch in housing finance markets and revitalize home building as the engine of economic growth,” said Dunn.  “Concurrently, we will strive to ramp up the political involvement of our 235,000 members so that home builders and their affiliates have the strongest possible voice in Washington during this election year and beyond.”
    The full press release is here.

Green Building Standard Nearing Approval
2.18.07        “The new National Green Building Standard will maintain the flexibility of green building practices while providing a common national benchmark for builders, remodelers and developers – another big step for the green building movement, said panelists last Friday at a news conference during the International Builders’ Show in Orlando, Fla.
“The first and only true consensus-based standard for residential green building is in its final comment period and almost ready for prime time,” according to the National Association of Home Builders (NAHB).
The National Green Building Standard is expected to be approved by the American National Standards Institute (ANSI) and published by NAHB and the International Code Council (ICC) early this spring.  The ANSI process ensures that the best technical reviews were used to create the standard, according to a statement by NAHB.
The full press release is here.

Pending Home Sales Down 24%
2.7.08        The National Association of Realtors Pending Home Sales Index, released today, shows housing turnover levels are 24 percent below year-ago levels.
The index is based on signed real estate contracts for existing single-family homes, condos and co-ops.  A signed contract is not counted as a sale until the transaction closes.  Modeling for the PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years.
You can find the full report here.

Housing Affordability Improving Across the Country
2.5.08        The most recent Housing Affordability Index from the National Association of Realtors shows that affordability improved in December to an Index of 122.0, meaning that a family with a median income has 122 percent of the income necessary to qualify for a standard mortgage at prevailing rates on a median priced home in the country.
    The reason for the improving situation is that incomes have continued to grow while home prices and interest rates have declined.  For all of 2005, the Index averaged 111.8.  In 2006 it was 106.1.
    Regionally, affordability varies widely with the Midwest at a very favorable 163.8, the South at 132.8, the Northeast at 109.3 and the West with an unfavorable Index of 83.4.
    The full report is here.

Home Prices Continue Slide
1.29.08        The value of existing single-family homes in the country are declining at an annual rate of 8.4 percent, according to the Standard & Poor’s/Case-Shiller Home Price Index released this morning.
    Data through November 2007 shows prices declining for the 11th consecutive month and a full two years of decelerating returns, according to the report.
    You can click on the January 29 report here.

New Home Sales Fall 4.7%
1.28.08        Sales of new one-family homes in December 2007 were at a seasonally adjusted annual rate of 604,000, down 4.7 percent from the revised November rate of 634,000 and 40.7 percent below the December 2006 estimate of 1,019,000, according to estimates released today by the Department of Commerce.
    An estimated 774,000 new homes were sold in 2007, 26.4 percent the 2006 total of 1,051,000.
    The full report from DoC is here.

Existing-Home Sales Fell 2.2% in December
1.24.08        Existing-home sales (including single-family, townhomes, condominiums and co-ops) slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units in December from a pace of 5.00 million in November, and are 22.0 percent below the 6.27 million-unit level in December 2006, according to a report today from the National Association of Realtors.
For all of 2007 there were 5,652,000 existing-home sales, the fifth highest year on record; however, the total was 12.8 percent below the 6,478,000 transactions recorded in 2006.
Lawrence Yun, NAR chief economist, said the market is experiencing uncharacteristic weakness.  “Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate,” he said.  “Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase.”
Total housing inventory fell 7.4 percent at the end of December to 3.91 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in November.  “The fall in inventory in December is encouraging, but inventories remain elevated and buyers have a clear edge over sellers in many markets,” Yun said.
The national median existing-home price for all housing types was $208,400 in December, down 6.0 percent from a year earlier when the median was $221,600.  Because home sales have slowed the most in higher cost markets, there is a downward distortion to the national median as the mix of closed sales has changed over the past year.  For all of 2007, the median price was $218,900, down 1.4 percent from a median of $221,900 in 2006.
    The full report is here.

Builder Confidence “Virtually Unchanged”
1.17.08        “Builder confidence in the market for new single-family homes was virtually unchanged for a fourth consecutive month in January as mortgage-market problems and inventory issues continued to pose challenges,” according to the latest NAHB/Wells Fargo Housing Market Index (HMI), released today.  The HMI rose a single point to 19 this month following a downwardly revised 18 reading in December and 19 readings in both October and November of 2007.
     “Builders are taking a realistic view of the continuing housing market correction and doing what they should to get inventories under control and restore greater balance to the supply and demand equation,” noted NAHB President Brian Catalde, a home builder from El Segundo, Calif.
     “The HMI has held within a narrow two-point range for the past five months, indicating that builder views of housing market conditions essentially haven’t changed over that time,” said NAHB Chief Economist David Seiders.  “Builders are anticipating a time when market conditions will support an upswing in building activity – most likely in the second half of 2008.”
    The full press release is here.

Housing Starts Down 38% from Year-Ago Levels
1.17.08        Privately-owned housing starts in December were at a seasonally adjusted annual rate of 1,006,000, according to a report released by the Department of Commerce this morning.  This is 14.2 percent below November levels and 38.2 percent below the revised December 2006 rate of 1,629,000.
    Building permits for new housing in December fell to an annual rate of 1,068,000.  This is 8.1 percent below November and 34.4 percent below December 2006 levels.
    The full report from DoC is here.

Retail Group Forecasts 3.5% Sales Growth in 2008
1.14.08        The National Retail Federation released its 2008 economic forecast on Monday, predicting that retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 3.5 percent from last year.
“Consumers will be under financial stress from high energy costs, the fallout from the housing slump, and sluggish employment and income growth,” said NRF Chief Economist Rosalind Wells.  “Shoppers will seek to pay down debt, spend more in line with income growth, and approach discretionary purchases with more restraint.”
Wells expects sluggish first half sales to eventually give way to stronger sales in the third and fourth quarters.  NRF expects industry sales to increase 3.2 percent in the first half of the year followed by a 3.8 percent increase in the second half as economic conditions improve.
    The full report is here.

Stable Home Sales Expected in Early 2008, NAR Says
1.9.08         “Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, then rise later in the year and continue to improve in 2009,” according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR chief economist, said there is a pull and tug exerting itself on the market.  “On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” he said.  “On the other, consumers continue to wait for additional signs of market stabilization.  There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase.  As a result, the exact timing and the strength of a home sales recovery is a bit uncertain.  A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008.”
“The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 in October, but remains above the August and September readings and indicates a broad stabilization.  The index was 19.2 percent below the November 2006 level of 108.4,” according to the report.
    The full report from NAR is here.

Housing Affordability Remains Favorable for Buyers
1.3.08        The typical family in the country has 119.3 percent of the income required to purchase a median priced single-family home, according to the latest Housing Affordability Index (HAI) released this morning by the National Association of Realtors.
    The HAI fell slightly in November to 119.3 from 119.4 in October.  The index is based on a home selling for $208,700 with a mortgage rate of 6.41 percent to a family with an income of $59,833.
    In November of 2006, the HAI stood at 110.7, so affordability has actually improved considerably in the past year.
    Regionally, affordability varies widely with an index of 107.2 in the Northeast, 158.4 in the Midwest, 130.1 in the South and 78.2 in the West.
    The full report is here.

Realtor Group Says Housing Market Stabilizing
12.31.07        “Existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier this year,” according to a report from the National Association of Realtors released this morning.
“Total existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 0.4 percent to a seasonally adjusted annual rate of 5.00 million units in November from an upwardly revised pace of 4.98 million in October, but are 20.0 percent below the 6.25 million-unit level in November 2006,” according to the report.
Lawrence Yun, NAR chief economist, said the market appears to be stabilizing.  “Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it’ll be a further sign that the housing market is stabilizing,” he said.
    The full report is here.

New Home Sales Down 34% from Year-Ago Levels
12.28.07        Sales of new one-family houses in November 2007 were at a seasonally adjusted annual rate of 647,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 9.0 percent below the revised October rate of 711,000 and is 34.4 percent below the November 2006 estimate of 987,000.
The median sales price of new houses sold in November 2007 was $239,100; the average sales price was $293,300.  The seasonally adjusted estimate of new houses for sale at the end of November was 505,000.  This represents a supply of 9.3 months at the current sales rate.
The full report from DoC is here.

Home Builders See Recovery in 2008, with Help from Congress
12.21.07        “With help from the Congress and an accommodating policy from the Federal Reserve, the housing industry will begin its recovery in the second half of 2008,” the National Association of Home Builders (NAHB) said yesterday in a year-end housing press release.
     “I think the best bet is that 2008 is the year we will be looking at the bottom for various components of the housing market,” said NAHB Chief Economist David Seiders.
Seiders, who is forecasting slow economic growth next year, said this forecast is based on several assumptions — the economy avoids recession, Congress passes key reforms to address the subprime lending crisis and the central bank remains ready to step in if needed to keep the economy moving forward.
Noting that NAHB’s Housing Market Index, which predicts demand for new single-family home sales, has stabilized at low levels during the past three months, Seiders said that this is an indication that “we are now approaching the bottom of home sales activity, and we anticipate a recovery in sales beginning in the second quarter of 2008.”
The full press release is here.

Housing Starts and Building Permits Down Over 24%
12.19.07        Privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,187,000.  This is 3.7 percent below the revised October estimate of 1,232,000, and is 24.2 percent below the revised November 2006 rate of 1,565,000.
Single-family housing starts in November were at a rate of 829,000; this is 5.4 percent below the October figure of 876,000.
    Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,152,000.  This is 1.5 percent below the revised October rate of 1,170,000 and is 24.6 percent below the revised November 2006 estimate of 1,527,000.
    Single-family authorizations in November were at a rate of 764,000; this is 5.6 percent below the October figure of 809,000.
    The full report from DoC is here.

NAR Releases Housing and Economic Forecast for 2008
12.11.07        “Existing-home sales are projected to trend up in 2008, with pending home sales showing a slight near-term rise,” according to the latest forecast by the National Association of Realtors.  However, a recovery for new-home sales is unlikely before 2009, according to the group.
Highlights from the report:
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 0.6 percent to an index of 87.2 from an upwardly revised reading of 86.7 in September.  It was the second consecutive monthly gain, but remained 18.4 percent below the October 2006 index of 106.8
Existing-home sales are likely to total 5.67 million this year, the fifth highest on record, rising to 5.70 million in 2008, in contrast with 6.48 million in 2006.  Existing-home prices should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008.
New-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009.  Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year.  The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.
The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.
Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.
The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008.  Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006.  Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next year.
The full report is here.

Home Builders, Realtors Support Mortgage Plan
12.7.07        A plan put forth yesterday by President Bush to limit foreclosures by working with key mortgage lenders and investment firms to freeze interest rates for five years on certain subprime mortgages is supported by the National Association of Home Builders (NAHB).
     “The Administration’s plan to help struggling borrowers stay in their homes is one of several steps that can help stabilize the housing market and reassure consumers and investors in the mortgage market,” said NAHB President Brian Catalde, a home builder from El Segundo, Calif. “We applaud this action and urge Congress to follow up quickly on pending legislation that would provide additional help in easing the credit crunch and restoring confidence in the marketplace.”
    The full press release from NAHB is here.
    The National Association of Realtors also came out in support of the President’s plan.  The press release from NAR is here.

Housing Affordability Improves
12.3.07        Housing affordability in the country improved in October to an index of 118.8 from 115.8 in September, according to the National Association of Realtors Housing Affordability Index released this morning.
    The index stands at 100 when a family with the median income has 100 percent of the money needed to qualify for a mortgage on a median-priced home.  The 118.8 reading means the typical family has 118.8 percent of the needed income to qualify.  One year ago, the index stood at 108.0.
    In October, the median price of a single-family home fell to $205,700 from $208,600 in September.  Mortgage rates fell to 6.56 nationally from 6.66.  Income rose slightly to $59,698 from last month’s $59,563.
    Regionally, the index stands at 105.8 in the Northeast, 154.9 in the Midwest, 130.7 in the South and 78.4 in the West.
    The full report is here.

New Home Sales Up in October
11.29.07        Sales of new single-family homes in October increased 1.7 percent from September to a seasonally adjusted annual rate of 728,000, according to the latest Department of Commerce report released this morning.  The rate is still 23.5 percent below October 2006 levels.
    The full report from DoC is here.

Existing-Home Sales Stabilizing
11.28.07        Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased by 1.2 percent to a seasonally adjusted annual rate of 4.97 million units in October from a downwardly revised level of 5.03 million in September, and are 20.7 percent below the 6.27 million-unit pace in September 2006, according to the National Association of Realtors.
The national median existing-home price for all housing types was $207,800 in October, down 5.1 percent from October 2006 when the median was $218,900, but there is a downward distortion from the temporary problems with jumbo loans that slowed sales in high-price markets, and that dragged down the national median, according to NAR.
Total housing inventory rose 1.9 percent at the end of October to 4.45 million existing homes available for sale, which represents a 10.8-month supply at the current sales pace, up from a downwardly revised 10.4-month supply in September.
Single-family home sales were unchanged from September at the seasonally adjusted annual rate of 4.37 million in October, and are 20.8 percent below 5.52 million-unit level in October 2006.  The median existing single-family home price was $205,700 in October, down 6.3 percent from a year ago.
    The full report is here.

Housing Starts Up 3% in Oct., But Single-Family Down 25%
11.20.07        Privately-owned housing starts in October increased 3 percent from September to a seasonally adjusted annual rate of 1,229,000 units, but are still down 16.4 percent from October 2006 levels, according to the latest Department of Commerce report released this morning.
    Single-family starts in October fell 7.3 percent to 884,000, down 25 percent from year-ago levels.
    Building permits for housing in October declined 6.6 percent from September levels to an annual rate of 1,178,000 units.  This is 24.5 percent below October 2006 levels.
    The full report from DoC is here.

Builder Confidence Stays Low
11.19.07        Builder confidence in the market for new single-family homes remained unchanged in November at an index level of 19, its lowest point since the series began in January of 1985.
    “It will be some time before market conditions support an upswing in building activity – most likely the second half of 2008,” said David Seiders, chief economist for the National Association of Home Builders.
    The full report is here.

Recovery Seen for Existing-Home Sales in 2008
11.14.07 A modest recovery for existing-home sales is expected in 2008 as the impact of the credit crunch subsides, while pending home sales indicate near-term stability, according to the latest forecast released by the National Association of Realtors.
Lawrence Yun, NAR chief economist, said the housing market will improve from a steady unleashing of pent-up demand, and from a wide abundance of safer mortgage products. “The level of pent-up demand reaching the market next year is a bit uncertain, and it is possible for even higher home sales activity than we’re forecasting if buyers regain their confidence about the long-term benefits of homeownership. Over the near term, home sales are likely to be fairly flat as the lingering impact of the credit crunch filters through the system through the end of the year.”
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September, rose 0.2 percent to a reading of 85.7 from an index of 85.5 in August. It was 20.4 percent lower than the September 2006 level of 107.6. “Even with relatively low fourth quarter sales, 2007 will be the fifth highest year on record for existing-home sales. The median existing-home price in 2007 will have fallen by less than 2 percent from an all-time high set in 2006,” Yun said.
The full report is here:

Housing Affordability Improved in September
10.31.07 Housing affordability in the country improved during the month of September to an Index of 114.8, according to the most recent report from the National Association of Realtors.
The Index indicates that a family earning the median income ($59,563) has 114.8 percent of the income necessary to qualify for a mortgage at prevailing rates to purchase a median priced ($210,200) single-family home.
By region, the Index stands at 101.9 in the Northeast, 147.8 in the Midwest, 126.4 in the South and 79.3 in the West.
The full report from NAR is here.

NAHB Expects Housing Turnaround To Begin In 2008
10.30.07 Though there appears to be no let-up to the current housing downswing, economists participating in the National Association of Home Builders Fall Construction Forecast Conference on Oct. 24 said they expect the industry to bottom out and to start turning around in 2008.
Acknowledging that there is definitely downward momentum in the market at this time, with starts, sales, prices and permits off, and problems in the subprime and Alt-A mortgage markets, NAHB Chief Economist David Seiders said that housing should nevertheless begin a modest recovery next year.
Despite the present market contraction, Seiders said that housing should begin to turn around next year for a number of reasons: the overall economy and job growth continue to move ahead at a decent pace, core inflation is under control, the late-summer credit crunch in mortgage markets is showing signs of easing since the Federal Reserve cut short-term interest rates on September 18, and the supply-demand equation will be better balanced as builders begin to whittle down excess inventories.
He also noted that the evolving inflation picture gives the central bank latitude to enact more monetary stimulus to support the economy if conditions warrant. Seiders is predicting that the Fed will cut short-term interest rates by another quarter of a percentage point when members of the Federal Open Market Committee meet on October 31 and will enact a similar rate cut by year-end, bringing the federal funds rate down from the current 4.75 percent to 4.25 percent.
With the housing sector facing a large backlog of unsold inventory, Seiders said that starts and permits won’t begin to move forward until sales firm up.
“Home sales should bottom out by the end of the first quarter of 2008, and I have starts up in the third quarter of next year, assuming the inventory overhang stabilizes,” he said.
The full release from NAHB is here.

McGraw-Hill Forecasts Drop in Construction Spending
10.26.07 McGraw-Hill Construction, today released its 2008 Construction Outlook, which forecasts a drop in overall U.S. construction spending for next year, fueled by tighter lending conditions and weaker job growth. Against this backdrop, the level of construction starts is expected to decline 2 percent, to $614 billion, following an 8 percent decline predicted for 2007.
"The credit crunch that emerged at mid-2007 continues to be a major concern for construction and the overall economy," said Robert A. Murray, Vice President, Economic Affairs, McGraw-Hill Construction. "As a result, we're now predicting downturns in the previously resilient multifamily and commercial segments, as well as continued weakness in single-family home construction."

New Home Sales ROSE 4.8% in September
10.25.07 Sales of new single-family houses in September were at a seasonally adjusted annual rate of 770,000, according to the latest Department of Commerce report released this morning. This is 4.8 percent above the August rate of 735,000, but is 23.3 percent below the September 2006 estimate of 1,004,000.
The median sales price of a new home in September was $238,000. The average sales price was $288,000.
The full report from DoC is here.

Existing-Home Sales Fall 8%
10.24.07 Total existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 8.0 percent to a seasonally adjusted annual rate1 of 5.04 million units in September from a downwardly revised pace of 5.48 million in August, and are 19.1 percent below the 6.23 million-unit level in September 2006, according to thee latest report from the National Association of Realtors released this morning.
The third quarter finished better than expected, with a 5.42 million annual rate of existing-home sales versus the 5.38 million forecast by NAR.
Lawrence Yun, NAR senior economist, said the decline is understandable. “Mortgage problems were peaking back in August when many of the September closings were being negotiated, and that slowed sales notably in higher priced areas that rely more on jumbo loans,” he said. “The good news is that mortgage availability has markedly improved in recent weeks with interest rates on jumbo loans falling, and more people are applying for safer and conforming FHA mortgage products. Some of the cancelled transactions will move forward as buyers apply for other loans.”
The full monthly report is here.

Housing Starts Fell in Sept.
10.17.07 Housing starts in September fell 10.2 percent from August to a seasonally adjusted annual rate of 1,226,000 units, according to a Department of Commerce report released this morning. The rate is 30.8 percent below September 2006 levels.
The government agency also reported that building permits for single-family housing fell 7.1 percent in September to an annual rate of 868,000 units.
The full report from DoC is here.

Homebuilder Confidence Falls to Lowest Level Since 1985
10.17.07 Builder confidence in the market for new single-family homes was further shaken in October due to continuing problems in the mortgage market, substantial inventories of unsold units and the perceived effect that negative media coverage is having on potential buyers, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released yesterday. The HMI fell two more points to 18 in October, its lowest point since the series began in January of 1985.
“Builders in the field are reporting that, while their special sales incentives are attracting interest among consumers, many potential buyers are either holding out for even better deals or hesitating due to concerns about negative and confusing media reports on home values,” said NAHB President Brian Catalde.
The full press release is here.

Building Materials Firms Have Sufficient Liquidity, Says Fitch
10.12.07 U.S. building materials companies have ample liquidity and are positioned to withstand ongoing credit market volatility, at least in the near-term, according to a report from Fitch Ratings.
Two examples cited in the report are BMHC and Masco:
“BMHC, with over 90 percent of its revenues directed to new home construction, has taken a more defensive stance in recent months to navigate through the downturn, deferring discretionary capital expenditures, limiting acquisition activities and selling assets.”
“Masco, with an estimated 40 percent of its sales from new home construction, expects lower profitability but continues with its aggressive share repurchase program.”
The full report “Liquidity Focus: U.S. Building Materials Companies” can be found here.

Pending Home Sales Drop
10.02.07 Pending sales of existing-homes activity will be dampened near-term as mortgage disruptions continue to impact the housing market, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator, fell 6.5 percent to a reading of 85.5 from an upwardly revised 91.4 in July, based on contracts signed in August. It was 21.5 percent below the August 2006 index of 108.9.
Lawrence Yun, NAR senior economist, said the mortgage market impact is quantifiable. “Fewer contracts were being written because of mortgage availability issues, and a separate internal survey of our members shows more than 10 percent of sales contracts fell through at the last moment in August, primarily the result of canceled loan commitments,” he said. “The volume of activity we’re seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can’t because of the credit crunch.
The full report is here.

Housing Affordability Improved in August
9.28.07 Housing affordability in the country improved in August, according to the latest Housing Affordability Index (HAI) released this morning by the National Association of Realtors. The HAI for August stands at 106.1, up from 103.6 in July.
An Index of 100 indicates a family with the median income ($59,427) has 100 percent of the income needed to qualify for a mortgage on a median-priced single-family home ($223,900).
Affordability varies widely by region. Residents of the Midwest have 138.6 percent of the income to purchase a median-priced home in their region. The South has an Index of 117.1, the Northeast 94.2 and the West an unfavorable 73.1.
The full report from NAR is here.

New Home Sales Down 21% from Year-Ago Levels
9.27.07 Sales of new single-family homes fell by 8.3 percent last month to a seasonally adjusted annual rate of 795,000 units, the Commerce Department said today. The annual rate of 795,000 is the lowest since 793,000 in June 2000.
Year-to-year, new-home sales fell 21.2 percent lower than August 2006 levels.
The median price of a new home fell 7.5 percent to $225,700 in August 2007 from $243,900 in August 2006. The average price declined by 8.0 percent to $292,000 from $317,300 a year ago.
The full DoC report is here.

Existing-Home Sales Down 4%
9.25.07 Existing-home sales fell in August when mortgage availability problems were peaking, according to a report from the National Association of Realtors released today.
Total existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 4.3 percent to a seasonally adjusted annual rate of 5.50 million units in August from a level of 5.75 million in July, and are 12.8 percent below the 6.31 million-unit pace in August 2006.
Lawrence Yun, NAR senior economist, expected the decline. “The unusual disruptions in the mortgage market, including a significant rise in jumbo loan rates, resulted in a fairly high number of postponed or cancelled sales, with many buyers having to search for other financing when loan commitments fell through,” he said. “Lower sales contributed to a buildup of unsold inventory.”
Yun expects similar results for home sales in September. “Once we get through these disruptions, we’ll get a better sense of where the actual market is in late fall as conditions begin to normalize,” he said.
The full report is here.

Housing Starts Fell in August
9.19.07 Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,331,000. This is 2.6 percent below the revised July estimate of 1,367,000 and is 19.1 percent below the revised August 2006 rate of 1,646,000.
Single-family starts in August were at a rate of 988,000. This is 7.1 percent below July’s 1,063,000 rate.
Building permits for privately-owned housing in August were at a seasonally adjusted annual rate of 1,307,000, 5.9 percent below the July rate and 24.5 percent below year-ago levels.
The full report from the Department of Commerce is here.

Pending Home Sales Index Falls Largely on Mortgage Tightening
9.5.07 Pending home sales, a forward-looking indicator, shows existing-home sales are likely to decline in coming months as mortgage disruptions work their way through the housing market, according to the National Association of Realtors.
The Pending Home Sales Index, based on contracts signed in July, fell 12.2 percent to a reading of 89.9 in July from the June index of 102.4, and was 16.1 percent lower than July 2006 when it stood at 107.1.
Lawrence Yun, NAR senior economist, said abnormal factors are clouding the horizon. “It’s difficult to fully account for mortgage disruptions in the index, and our members are telling us some sales contracts aren’t closing because mortgage commitments have been falling through at the last moment,” he said.
The full report is here.

Housing Affordability Slips
9.5.07 The National Association of Realtors Housing Affordability Index fell to 103.6 in July from 104.9 in June.
The index stands at 100 when a family with the median income has 100 percent of the income needed to qualify for a mortgage at prevailing rates to purchase a median priced single-family home. An index above 100 indicates favorable affordability.
Housing affordability varies widely by region. The index is at 140.3 in the Midwest, 114.9 in the South, 90.4 in the Northeast and 69.2 in the West.
The full report from NAR is here.

Existing-Home Sales Slip Slightly, Down 0.2% in July
8.27.07 Existing-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, according to the National Association of Realtors®.
Total existing-home sales – including single-family, townhomes, condominiums and co-ops – slipped 0.2 percent to a seasonally adjusted annual rate1 of 5.75 million units in July from an upwardly revised pace of 5.76 million in June, and are 9.0 percent below the 6.32 million-unit level in July 2006.
Lawrence Yun, NAR senior economist, said the market is holding on despite temporary mortgage disruptions. “Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months,” he said. “Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize.
“The rise in sales and prices in the Northeast region on a fairly consistent basis in recent months is promising because this was the first region that underwent sales and price weakness after the boom. Now, it appears that it will be the first region to climb back, indicating that other regions could follow a similar path.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.70 percent in July, up from 6.66 percent in June; the rate was 6.76 percent in July 2006. Last week, Freddie Mac reported the 30-year fixed rate dropped to 6.52 percent.
The national median existing-home price for all housing types was $228,900 in July, down 0.6 percent from July 2006 when the median was $230,200, the highest monthly price on record.
The full report from the National Association of Realtors is here.

New Home Sales Up in July
8.24.07 To the surprise of most economists and industry analysts, sales of new homes in the country rose in July by 2.8 percent to a seasonally adjusted annual rate of 870,000 units, the Department of Commerce reported today. New home sales remain, however, 10.2 percent below year-ago levels.
The dull DoC report is here.

Housing Starts Fell 6% in July
8.16.07 Housing starts in July were at a seasonally adjusted annual rate of 1.381 million, 6.1 percent below the June rate and 20.9 percent below year-ago levels of 1.746 million, according to Department of Commerce data released today.
Building permits in July declined 2.8 percent to an annual rate of 1.373 million units. That rate is 22.6 percent year-ago levels.
The full report from DoC is here:.

Existing Home Sales Down 11%
8.16.07 Total existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate of 5.91 million units in the second quarter, down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006, according to a National Association of Realtors report released yesterday.
The national median existing single-family home price was $223,800 in the second quarter, down 1.5 percent from the second quarter of 2006 when the median price was $227,100.
The full report is here.

Where is Housing Headed?
8.10.07 The housing market will probably hold close to present levels in the months ahead, according to the latest forecast by the National Association of Realtors®.
Existing-home sales are forecast at 6.04 million in 2007 and 6.38 million next year, below the 6.48 million recorded in 2006. New-home sales are expected to total 852,000 this year and 848,000 in 2008, down from 1.05 million in 2006. Housing starts, including multifamily units, are likely to total 1.43 million in 2007 and 1.40 million next year, below the 1.80 million units started in 2006.
“With the population growing, the demand for homes isn’t going away – it’s just being delayed,” said Lawrence Yun, NAR Senior Economist. “More buyers, and cutbacks in new construction, will eventually draw down the inventory levels and support future price appreciation, but general gains will be modest next year. Serious buyers today have a long-term view of housing as an investment – speculators have left the market.”
Read the full forecast here.

Remodeling Activity Slow
8.7.07 Remodeling activity slowed slightly in the second quarter of 2007, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The current market conditions component slipped from 46.1 to 44.8 on a seasonally adjusted basis and the future expectations measure declined by more than two points to 44.1. The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view the market conditions as improving.
The full report from NAHB is here.

Pending Home Sales Improving
8.2.07 A forward-looking indicator based on pending home sales released yesterday shows the housing market is likely to stabilize in the months ahead, according to the National Association of Realtors.
The Pending Home Sales Index, based on contracts signed in June, was 5.0 percent higher than the revised May index of 97.5, but is still 8.6 percent below the June 2006 index of 112.0. The 5.0 percent monthly gain is the largest in more than three years.

Housing Affordability Worsens
7.30.07 The Housing Affordability Index worsened in June to 104.4 from 110.4 in May, according to the latest National Association of Realtors report released today. The Index stands at 100 when a family earning the median-family income has 100 percent of the income necessary to afford a median-priced home in the country at prevailing interest rates.
Regionally, the Index is at 90.1 in the Northeast, 144.6 in the Midwest, 113.3 in the South and 72.5 in the West.

Existing-Home Sales Down 4%
7.27.07 Existing-home sales declined 3.8 percent to a seasonally adjusted annual rate of 5.75 million units in June from a downwardly revised level of 5.98 million in May, and are 11.4 percent below the 6.49 million-unit pace in June 2006, according to the latest report from the National Association of Realtors.
“Two bright spots in the June report are a decline in housing inventory and a modest gain in home prices,” said Lawrence Yun, NAR senior economist. “Although we’ve seen seasonal month-to-month price increases over the past four months, this is the first time in 11 months that the median home price is higher than the year-ago price.”
The full NAR report is here.

New Home Sales Slip in June
7.26.07 Sales of new single-family homes in June fell to a seasonally adjusted annual rate of 834,000, according to data released today by the Department of Commerce. This is 6.6 percent below the revised May rate of 893,000 units and is 22.3 percent (+/-10.1 percent) below the June 2006 estimate.
See the full DoC report here.

Housing Starts Improve Slightly
7.18.07 Housing starts in the month of June were at an annual rate of 1,467,000 units, a 2.3 percent increase from May, according to the latest report from the Department of Commerce released this morning. The rate is still 19.4 percent below the rate of June 2006.
Building permit applications fell 7.5 percent in June from May to an annual rate of 1,406,000. The rate is 25.2 percent below year-ago levels.
Read the full DoC monthly report here.

Housing Market Index Falls
7.17.07 A surplus of unsold homes on the market, combined with ongoing concerns in the subprime mortgage arena and affordability issues associated with tightened lending standards and higher interest rates, continue to take a significant toll on builder confidence, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI declined four points to 24 this month, which is its lowest level since January of 1991.
“The bottom line is that the single-family housing market is still in a correction process following the historic and unsustainable highs of the 2003-2005 period,” noted NAHB Chief Economist David Seiders.
“In spite of these challenges, we expect to see home sales get back on an upward path late this year and we expect housing starts to begin a gradual recovery process by early next year. At that point, this market will be operating well below its long-term potential, providing plenty of room to grow in 2008 and beyond.”

Home Prices Expected to Recover As Inventories Decline
7.12.07 Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR senior economist, said a good buyers' market has evolved. "Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," he said. "But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state."
Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.
Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $222,700 next year following a 2.6 percent drop in 2007 to $240,100.
"Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008," Yun said. "Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters."
The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008. Growth in the U.S. gross domestic product (GDP) will probably be 2.0 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.
The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation- adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain in 2006.

Pending Home Sales Fall
7.3.07 Pending home sales, a forward-looking indicator, shows existing-home sales may ease but should stay fairly close to present levels in the months ahead, according to a National Association of Realtors report released today.
The Pending Home Sales Index, based on contracts signed in May, rose in the West and Northeast but fell in the Midwest and South. The national index stood at 97.7 in May, down 3.5 percent from a downwardly revised April index of 101.2, and is 13.3 percent lower than May 2006 when the reading was 112.7. In April, the index was 10.4 percent lower than a year earlier.
The full report is here.

16,000-Home Las Vegas Development Approved
7.2.07 The City of Las Vegas announced in a press release this morning that a consortium of eight homebuilders and a master planner, including Focus Property Group, Toll Brothers, Lennar, Pulte, KB Home, Kimball Hill Homes, Woodside Homes, Meritage Homes and Ryland Homes have received final approval for the development of the 1,712-acre community known as Kyle Canyon Gateway.
The approval allows for up to 16,000 homes upon build out.

Supreme Court Rules in Favor of NAHB on Environment
6.27.07 The U.S. Supreme Court has ruled in favor of the National Association of Home Builders in a five to four decision regarding homebuilders’ consultation requirements under the Endangered Species Act.
In the case of NAHB v. Defenders of Wildlife, the court reversed and remanded a lower court decision that required the U.S. Environmental Protection Agency to consider the protection of “listed” species before handing Clean Water Act permitting authority over to the state of Arizona.
See NAHB’s press release on the matter here.

New Home Sales Slowed in May
6.26.07 Sales of new single-family homes in the country slowed to an annual rate of 915,000 units, according to data released today by the Department of Commerce. This is 1.6 percent below the April level and 15.8 percent below the May 2006 level.
The complete report from DoC is here.

May Home Sales Slip Slightly
6.25.07 Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased by 0.3 percent to a seasonally adjusted annual rate1 of 5.99 million units in May from an upwardly revised pace of 6.01 million in April, and are 10.3 percent below the 6.68 million-unit level in May 2006, according to a report released this morning by the National Association of Realtors.
Single-family homes fell 0.8 percent to an annual rate of 5.20 million units. That is 10.8 percent below year-ago levels of 5.83 million units.

Housing Starts Declined in May
6.19.07 Housing starts in the country fell 2.1 percent in May to a seasonally adjusted annual rate of 1.474 million units, the Commerce Department reported today. The rate is 24.2 percent bel