Welcome to the UtahHomeSellingTeam.com Blog

2018-01-20 06:39:35
New Home Building

Dropped Sharply at the end of 2017,The number of housing units that began construction fell sharply at the end of 2017but still capped a solid year of new single-family home construction that could soon relieve rising home prices.

Housing starts fell 8.2% in December from a month earlier to a seasonally adjusted annual rate of 1.19 million, the Commerce Department said Thursday. Residential permits, which can signal how much construction is queued up, also fell, ping 0.1% to an annual pace of 1.30 million last month.

Last month’s housing starts decline came after two strong months of growth that stemmed from rebuilding efforts occurring in the wake of hurricanes that ravaged the southern and eastern U.S. Such large back-to-back growth usually isn’t sustainable and appears to have corrected back to a normal level in December. Economists surveyed by The Wall Street Journal had expected a decline, but a smaller at 1.5% for housing starts and a larger 0.8% decline for permits.

December also saw inclement winter weather in the South and East that likely significantly impacted home construction. The South saw housing starts 14.2% and the Northeast ped 4.3% to the lowest level since May 2017.

“Starts were always likely to correct after overshooting… But the severe weather in late December likely did extra damage, and the first half of January likely will be depressed too.

Housing-starts data can be volatile from month to month and can be subject to large revisions. Looking past monthly volatility, starts were up 2.4% in 2017 when compared to 2016, and permits increased 4.7% in the same period, signaling solid construction in 2017 that coincided with rising demand that has pushed up prices amid a chronic homes shortage.

The median sales price for existing homes hit $248,000 in November, up 5.8% from a year earlier, which is a more rapid rise than both inflation and wage growth.

But construction of new single-family homes appears to be ramping up at a solid pace. Permits and starts both increased by about 9% in 2017 from the previous year.

“Should more construction come about, the much needed additional inventory will help calm home price appreciation. That would be a good trend for housing affordability,” National Association of Realtors chief economist Lawrence Yun said in a press release.

New residential construction hit a postrecession high in October 2016 but has trended lower since as multifamily construction has declined. It remains far below the levels reached during the years leading up to the 2008 financial crisis.

Still, home builders are feeling upbeat about the housing market. The National Association of Home Builders’ Housing Market Index, which gauges home builder sentiment about the market for single-family homes, fell in January, but remained near an 18-year high.

 
Blog Archive
2018-12-05 08:02:12
In 2019 Mortgage Payments to Jump 8.4%

2018-12-04 05:56:21
Financing for Manufactured Homes Coming

2018-12-03 07:16:21
Tale of Dual Markets

2018-12-01 08:01:47
Need to Sell Your Home this Winter?

2018-11-30 07:43:20
Buyers Pull Away From New-Home Market

2018-11-29 07:45:39
Mortgage Loan Limits to Rise in 2019

2018-11-28 07:42:53
Home Buyers and Sellers Should Watch in 2019

2018-11-27 07:10:44
Townhouse Construction is Expected to Increase

2018-11-26 07:55:12
Cities With Oldest, Youngest Homeowners

2018-11-24 08:24:08
Overall, December is the Best Time to Buy a Home

2018-11-23 07:29:39
Sluggish Home Sales came to an end in October

2018-11-23 06:43:53
Happy Thanksgiving

2018-11-20 09:19:16
How to Pet-Proof Your House for the Holiday Guests

2018-11-19 07:08:54
10 Great U.S. Ski Towns

2018-11-17 07:12:02
A Way to Keep Aging Parents Close to Home

2018-11-16 07:58:33
Huge Mistake to Take Your Home Off the Market for the Holidays

2018-11-15 07:55:35
Best Mortgage Advice I've Heard, Ever

2018-11-14 07:31:18
Tips to Help You Avoid a Rental Scam

2018-11-12 07:15:39
Buying a Home?

2018-11-10 06:03:39
Mortgage Rates Rise this Week

2018-11-09 07:36:01
Cheaper the Home

2018-11-08 05:56:20
Building Credit History From Scratch

2018-11-07 06:25:07
How to Get a Mortgage Without Freaking Out

2018-11-05 06:42:51
Home Prices Are Decelerating Not Falling

2018-11-03 08:09:28
First-time Homebuyers Transition from Renting

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.