Redfin, the Seattle-based technology-powered real estate brokerage firm is reporting that the traditional year-end slowdown in homebuying did not occur in December 2020. In fact, not only did buying and selling continue, but according to Redfin, 49.7% of the home offers written by its agents involved a bidding war between prospective buyers.
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Canadian Housing Starts Trends Increased in December 2020
According to the Canada Mortgage and Housing Corporation (CMHC) in December the trend in Canadian housing starts was at 239,052 units, up from 236,334 units in November. The trend measure is a six-month moving average of the monthly seasonally adjusted rates (SAAR) of housing starts.
Building Material Costs Increase Year-Over-Year by 5.4%
Further analysis, provided by the National Association of Home Builders (NAHB), of the December 2020, Producer Price Index (PPI), recently released by the Bureau of Labor Statistics, reveals that prices paid for goods used in residential construction in December, less energy costs, rose 0.7% and ended 2020, 5.4% above their December 2019 level.
Canadian Home Sales Jump 7.2% from November to December – 47.2% Year-Over-Year
The Canadian Real Estate Association (CREA) is reporting that home sales in Canada jumped 7.2% in December from November. Setting a new record amid surging demand in the Greater Toronto and Vancouver areas. CREA noted that actual sales, not seasonally adjusted, rose 47.2% year-over-year.
New Home Listing Decline in Early January – First Drop Since July 2020
Redfin, the Seattle-based technology-powered real estate brokerage reported today (1/15/21) that new listing of homes for sale were down -3% from a year earlier, the first decline since July of 2020. This as pending home sales increased by 35% during the same period
U.S. Consumer Sentiment Moves Lower in Early January
According to the latest (1/15/21) University of Michigan’s Consumer Sentiment Survey U.S. consumer sentiment declined in early January to a reading of 79.2 down from December’s final reading of 80.7.
Producer Price Index Increases 0.3% in December – Up Year-Over-Year 1.4%
The U.S. Bureau of Labor Statistics (BLS) is reporting (1/15/21), that the Producer Price Index (PPI) for final demand increased 0.3% in December, seasonally adjusted. This increase followed a 0.1% increase in November and a 0.3% in increase in November.
Mortgage Rates Climb Higher in Week Ending January 14th, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending 14th January 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.79% with an average 0.7 point, up from last week when it averaged 2.65%.
Weekly Jobless Claims Move Higher in the Week Ending January 9th, 2021
The U.S. Department of Labor is reporting that an additional 965,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday January 9th. An increase of 181,000 from the previous week’s revised level. The 4-week moving average was 834,250, an increase of 18,250 from the previous week’s revised average.
Associated Builders & Contractors Optimism Improved in Recent Construction Backlog Survey
According to a recently conducted Associated Builders and Contractors (ABC) member survey the Construction Backlog Indicator (CBI) rebounded slightly in December to a reading of 7.3 months, an increase of 0.1 months from November’s reading. The ABC Construction Confidence Index (CCI) readings for sales, profit margin and staffing levels also increased in December.