According to the US Census Bureau’s Survey of Construction, lot values for single-family detached housing starts in 2021 increased across the country, with the national value in six out of nine Census division setting new records. The US median lot price now stands at $55,000.
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Canadian Employment Declines and Unemployment Rises in August 2022
Statistics Canada reported on Friday that employment fell by 40,000, or 0.2%, in August, bringing the cumulative decline since May 2022 to 114,000, or 0.6%. StatsCan notes that the decline in employment since May has been primarily in full-time work.
Mortgage Rates Continued to Push Higher in the Week Ending September 8, 2022
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending September 8, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 5.89% with an average 0.7 point, up from last week when it averaged 5.66%.
Non-Site Built Single-Family Completions Continued to Languish in 2021
According to the US Census Bureau’s Survey of Construction data, the total market share of non-site built single-family homes—both modular and panelized—in 2021 was at 2% of all single-family completions. In 2021, there was a total of 24,000 single-family units built using modular and panelized/precut (14,000) construction methods.
US Weekly Jobless Claims Decline for the Week Ending September 3, 2022
Seasonally adjusted, an additional 222,000 Americans made their initial filing for unemployment benefits during the week ending on September 3rd. This is a decrease of 6,000 from the previous week’s revised-lower level of 228,000 (originally reported as 232,000).
Mortgage Applications Trended Lower in the Week Ending September 2, 2022
According to data from the Mortgage Bankers Association’s Weekly Mortgage Application Survey, for the week ending September 2, the Market Composite Index (a measure of mortgage loan application volume) decreased 0.8% on a seasonally adjusted basis from one week earlier.
Fannie Mae Home Purchase Sentiment Index® Slightly Lower in August
Fannie Mae today released its Home Purchase Sentiment Index® for August, which dropped 0.8 points to a reading of 62.0. This marks the sixth consecutive month of declines, as high home prices and elevated mortgage rates continue to drag down consumer sentiment.
Pandemic Led to Shift in Home Building From Large Metro Core Areas to Low-Density and Low-Cost Markets
The latest National Association of Home Builders’ Home Building Geography Index reports that home building activities have moved to low-density and low-cost markets since the beginning of the pandemic. This has led to a decline in single-family construction in large metro core and inner suburbs between Q4 2019 to Q2 2022.
Blackstone Inc.’s Home Partners of America Division Stopping Home Purchases in Half of Its Markets
In another sign that competition in US real estate markets is cooling, Blackstone Inc. announced that its Home Partners of America Division, the single-family landlord, was ceasing the purchase of homes in nearly half of the 80 markets where it currently operates.
Construction Sector Employment Continued to Grow in August
A closer look at the Bureau of Labor Statistics’ (BLS) August nonfarm payroll employment report shows both residential and non-residential construction industry employment totaled 7.7 million in August, exceeding its February 2020 level. In August, construction employment grew by 16,000 jobs.