Eye on the Economy: October 29, 2014
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Eye on the Economy Builder Confidence Adjusts as Sales and Starts Hold Steady October 29, 2014 eyeonhousing.org
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Our biweekly review of the housing economy.
Transcript of Eye on the Economy: October 29, 2014
Eye on the EconomyBuilder Confidence Adjusts as Sales and Starts Hold
Steady
October 29, 2014
eyeonhousing.org
Housing Market Index2
• Housing Market Index fell to 54 points in October
• Fell from a level of 59 in August
• More builders still view the market favorably
• HMI reading is consistent with long-run improving trends
• Read more here
Housing Starts3
• Housing construction in September rebounded
• Pace of total housing starts rose above 1 million
• Third time this year
• Single-family starts rose 3.4% over Q2
• Multifamily construction starts increased 5% over Q2
• Read more here
New Home Sales4
• September new home sales held steady
• September had an annual rate of 467,000 sales
• Highest pace since July 2008
• Third Quarter finished at a rate of 446,000
• 4.4% over Q2
• Read more here
Sources of Financing 5
• Growing market share for conventional financing sources
• Seven percent of new home sales were cash-based
• Read more here
Pending Home Sales Index6
• Pending existing home sales increased 0.3% in September
• PHSI increased to 105 last month
• Pending sales are up year-over-year
• Read more here
Existing Home Sales 7
• Existing home sales have increased to highest level of the year
• Posted gains for the last six months
• Cash purchases have larger share of existing home market
• Twenty-four percent in September
• Read more here
Remodeling Market Index8
• Remodeling Market Index rose to 57 in Q3
• Sixth consecutive quarter over 50 points
• Read more here
House Prices9
• Case-Shiller House Price Index rose by 5.1% year-over-year
• Twenty-eighth consecutive month of year-over-year increases
• Prices have risen by 18% over this period
• Read more here
Rising Rents & Falling Homeownership10
• Rents have risen 1.5% above the rate of inflation in the last 12 months
• Homeownership rate has fallen to 63.4% during the third quarter
• Nearing a 20-year low
• Read more here
• Read more here
Producer Price Index11
• Price constrained market may put pressure on builders
• Given the rising costs of building
• Gypsum prices expected to increase in 2015
• Will raise the price of drywall
• Read more here
Other Analysis12
• The benefits of the Low-Income Housing Tax Credit
• National lot sizes and prices
• Regional differences in new home sales financing
• Water utility systems
