State & National Updates
Tight Inventory and Rising Costs
Tight Inventory and Rising Costs
A strong month for home sales in March reinforced the trend of positive housing demand. Sales of new single-family homes grew 15.6% from a year prior, and 5.8% above the previous month's mark—a noteworthy gain, considering February's sales benefitted from the unseasonably warm weather.
March was also an encouraging month for the existing homes market, which saw sales rise 4.4% to its highest pace in 10 years. Inventory of existing homes for sale remains very tight, standing at only a 3.8 months' supply. This is a primary reason why the increases of home prices continue to outpace growth in household incomes.
However, supply-side costs remain on the rise as builders continue reporting scarce availability of labor and lots. And the announcement of an effective 20% tariff on Canadian softwood lumber could have a significant, negative impact on construction jobs and wages. One-third of the softwood lumber consumed in the U.S. is imported, about 95% of which comes from Canada.
NAHB Chief Economist Robert Dietz
Sales
The surge led to the fastest pace in 10 years.
The number of signed contracts in March still exceeded the level from a year ago.
House Prices Surpass Pre-Recession Peak
All 20 metro areas had positive home appreciation.
Construction
Duty on Canadian Lumber Will Have Significant Impacts
Thousands of U.S. jobs and hundreds of millions in wages will be lost.
Post-Recession High for Residential Construction Spending
Both multifamily and home improvements experienced big gains in March.
Poll Examines Career Motivations of Young Adults
Most know what they want, but very few say it's a job in construction.
Lending
Cash Sales Dwindle for New Homes
The current share of FHA-backed loans is twice the size of its pre-recession average.
Mortgage Rates Tick Down in March
The decline comes after four consecutive months of increases.
Declining Activity for USDA Single-Family Programs
NAHB study explores the trends of USDA home loans over the past decade.
Economic Indicators
GDP Growth Slows in the 1st Quarter
A second-quarter rebound is a strong possibility.
Homeownership Rate on Stable Ground
Levels increased slightly in every age group.
Consumer Confidence Declined in April
A less-favorable outlook comes after a record-setting month for optimism.
Remodelers Report Broad-Based Confidence
Sentiments about market conditions are the most positive since 2015.
