According to the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design report for Q1 of 2022, with additional analysis provided by the National Association of Home Builders (NAHB), the single-family built-for-rent sector (SFBFR) continues to expand as housing affordability hurdles continue to increase.
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Home Sale Bidding Wars Slow for Second Consecutive Month in April
Redfin, the Seattle-based, technology powered real estate company, reported today (5-18-22) that, nationwide, 60.7% of home offers written by Redfin agents in April encountered competition on seasonally annual adjusted basis. This is the lowest level seen since March of 2021. The statistic is down from a revised rate of 63.4% in March.
Mortgage Applications Decline in the Week Ending May 13, 2022
According to data from the Mortgage Bankers Association, for the week ending May 13, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -11.0% compared with the previous week.
Canadian Investment in Building Construction Up in March, Completing Strong Q1 Results
Statistics Canada (StatsCan) reported today (5-17-22) that the investment in building construction in March rose 1.8% to $20.3 billion (CAD), a new record high. Gains were reported in both the residential and non-residential sector. On a constant dollar basis (2012=100), investment in building construction increased 1% to $12.3 billion.
Builder Sentiment Tumbles 8 Points Lower in May, Marking Fifth Consecutive Month of Declines
On Tuesday (5-17-22), The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes tumbled -8 points lower in May to a reading of 69. This marks the fifth consecutive month that builder sentiment has declined.
Shares of Mortgage Loans in Forbearance Decline to 0.94% as of April 30, 2022
According to the new monthly Mortgage Bankers Association’s (MBA) Loan Monitoring Survey (LMS), the total number of loans now in forbearance decreased by -11 basis points from 1.05% of servicers’ portfolio volume in the prior month to 0.94% as of April 30, 2022. The MBA estimates that 470,000 homeowners remain in forbearance plans.
Canadian Housing Starts Climb Higher in April
The Canadian Mortgage and Housing Corporation (CMHC) reported today (5-16-22) that the trend in housing starts in Canada was 257,846 units in April, up from 253,226 units in March. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of housing starts.
Canadian Home Sales Decline Month-Over-Month and Year-Over-Year in April
According to statistics released on Monday by the Canadian Real Estate Association, home sales recorded over Canadian MLS® Systems declined -12.6% between March and April. The Aggregate Composite MLS® Home Price Index edged down -0.6% on a month-over-month basis in April—the first month-over-month decline since April 2020.
Canadian Consumer Confidence Drops to Its Lowest Reading Since December of 2020
According to the latest Bloomberg Nanos Canadian Confidence Index (BNCCI), a measure of sentiment based on weekly polling, Canadian consumer confidence recorded its sharpest weekly decline since the darkest moments of the pandemic, with inflation and deteriorating outlook for housing weighing on consumer confidence.
Building Materials Costs Climb Higher in April—Up Both Month-Over-Month and Year-Over-Year
A closer look at the Bureau of Labor Statistics’ April Producer Price Index (PPI) report, which was released on Thursday (5-12-22), with further analysis provided by the National Association of Home Builders (NAHB), reveals that the prices of goods used in residential construction (ex-energy and not seasonally adjusted) increased 0.5% in April.