Existing Canadian home sales rose 56.9% month on month in May. This as they recover from their weakest levels on record in April, the result of the COVID-19 pandemic and shelter in place restrictions.
According to the latest NAHB / Wells Fargo Housing Market Index (HMI) for June, builders’ confidence in the market for newly built single-family homes increased to 21 points to a reading of 58.
A sure sign that the housing market is moving closer to pre-pandemic levels, is that Southern California home buying rose for the seventh straight week, as house hunters put 10.3% more homes into escrow.
According to a report from Redfin CEO Glenn Kelman, demand for houses continues to skyrocket. Seasonally adjusted demand for houses during the week ending Sunday, June 7th was 25% above pandemic levels.
The mood in the homebuilding industry has changed dramatically since April’s National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index reported a 42-point decline in builder confidence.
The housing market is quickly recovering from the ‘shelter in place’ orders brought about by the efforts to reduce the spread of the coronavirus.
In testimony before the Senate Banking Committee on Tuesday June 9th, Mark Calabria, the director of the Federal Housing Agency, said that forbearance rates for the GSEs, have plateaued at ~6.6%, which he told senators was ‘manageable’.
The May 2020 LegalShield Law Index, which is a suite of leading indicators of the economic and financial status of U.S. households and small businesses is reporting its Housing Activity Index (HAI) reached an all-time high in May.
After a quiet start to June, dealers are reporting an uptick in this week’s sales activity. As new projects start up, some dealers are reporting experiencing a 6% – 10% improvement over last week.
According to the latest Bureau of Labor Statistics (BLS) Producer Price Index (PPI) report, not seasonally adjusted prices for goods used in residential construction increased 0.6% in May.