According to statistics released on Monday (1-17-22) by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems edged up 0.2% between November and December 2021. The small increases in November and December followed on the heels of a 9% increase in activity in October. This places sales in Q4 2021 between the highs and lows seen earlier in the year. The actual (not seasonally adjusted) number of transactions in December 2021 came in -9.9% below the record for December, which was set in December of 2020.
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Builder Sentiment Declines in January on Inflation Concerns
On Tuesday (1-18-22), 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 edged 1-point lower in January to a reading of 84. The HMI has hovered between 83 and 84 for the past three months, the same rate it was at in the spring of 2021. Builder confidence topped at a level of 90 in November 2020.
Canadian Real GDP for Natural Resource Sector Increased in Q3 2021 — Forestry Sector Sole Decline
Statistics Canada (StatsCan) reported on Friday (1-14-22) that the real gross domestic product (GDP) for the natural resource sector increased 2.9% in Q3 2021. The natural resources sector real GDP has now surpassed pre-pandemic levels, recovering from the -11.1% drop in Q2 of 2020.
Monthly Construction Input Prices Rise in December
According to analysis provided by the Associated Builders and Contractors (ABC) regarding the U.S. Bureau of Labor Statistics’ (BLS) December Producer Price Index, construction input prices rose 0.6% in December when compared to November. Nonresidential construction input prices also increased 0.6% for the month.
Goods Used in Residential Construction Climb 1.5% in December
According to the Bureau of Labor Statistics’ (BLS) latest Producer Price Index (PPI), which was released on Thursday (1-13-22) with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the price of goods used in residential construction, less energy, climbed 1.5% in December (not seasonally adjusted). The index was driven higher by a significant price increase for wood products.
Relocation, Renovations, and Refinancing All Expected to Grow in 2022
According to the newest LendingTree survey, approximately 40% of Americans are considering a move in 2022. Among those responding to the survey, nearly a third said that the pandemic has changed what they are looking for in a home, as well as the location. Consumers are seeking more space to accommodate the actualities of remote work, as the global pandemic continues into another year.
University of Michigan Preliminary Consumer Sentiment Index Decreases for January
The University of Michigan today (1-14-21) released its preliminary Consumer Sentiment Index (CSI) for January. The Index of Consumer Sentiment declined to a reading of 68.8 in January down from 70.6 in December — a month-over-month decrease of -2.5% and down -12.9% year-over-year (79.0 in January 2021). The Current Economic Conditions dropped to a reading of 73.2 in January, down from 74.2 in December — a month-over-month decrease of -1.3%, and down -15.6% year-over-year (86.7 in January 2021).
Canadian Investment in Building Construction Increased 1.2% in November
Statistics Canada (StatsCan) reported today (1-13-22) that investment in building construction increased 1.2% to $18.0 billion (CAD) in November. Every component, except industrial construction, experienced an increase. On a constant dollar basis (2012=100), investment in building construction grew 0.5% to $12.3 billion. Overall, residential construction investment rose 1.5% to $13.1 billion in November.
Home Prices Start 2022 at New Record High Levels
Redfin, the Seattle-based, technology-powered real estate brokerage firm, reveals in their latest housing market report (1-13-22) that, during the week ending January 9, 2022, the median home sale price increased year-over-year by 16%, reaching an all-time record high of $365,000. According to Redfin’s Homebuyer Demand Index (HDI), homebuyer activity jumped 9%, while the number of homes for sale fell to a new all-time low within the report’s time frame.
Producer Price Index for Final Demand Increases 0.2% in December
The Bureau of Labor Statistics (BLS) reported today (1-13-22) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.2% in December. The December rise follows a 1% increase in November and 0.6% increases in October, September, and August. On an unadjusted basis, the final demand index rose 9.7% percent in 2021 — the largest calendar-year increase since data were first calculated in 2010.