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