Welcome to today’s coverage on the latest developments in the real estate sector. From the ongoing challenges faced by homebuilders due to high mortgage rates, as reported by the NAHB/Wells Fargo Housing Market Index, to innovative design trends aimed at making new homes more affordable, our articles provide a comprehensive look at the dynamic housing market. Whether you’re interested in the economic indicators, market predictions, or the newest residential projects, our curated news pieces offer valuable insights and updates tailored for homeowners, builders, and investors alike. Dive into today’s news to stay informed and ahead in the real estate world.
NAHB/Wells Fargo Housing Market Index (HMI) | NAHB
The NAHB/Wells Fargo Housing Market Index (HMI) is designed to gauge and track the pulse of the single-family housing market. The HMI is based on a monthly survey of single-family builders who are asked to rate three specific conditions of the housing market:
- Present sales of new single-family homes
- Expected sales of single-family homes for the next six months
- Traffic of prospective buyers of new single-family homes
Each month, the HMI depicts overall builder sentiment toward housing market conditions on a scale ranging between 0 and 100. A higher reading (>50) is an indication that the majority of builders feel confident about the current and near-term outlook for housing. Lower readings signify less optimism among builders.
Builder confidence in the market for new single-family homes fell to 42 in July, down one point from the previous month. Higher-for-longer mortgage interest rates, as well as elevated rates for construction and development loans, continue to put a damper on builder sentiment.
All three HMI components in July remain below the key threshold of 50:
- Present sales: rated fair
- Expected sales for the next six months: rated fair
- Traffic of prospective buyers: rated low to very low
The July survey also revealed that builders are increasingly cutting prices to bolster home sales (31% of builders did so in July compared to 29% in June and 25% in May). However, the average price reduction in July held steady at 6% for the 13th straight month.
New Residential Construction Press Release
For the latest information on new residential construction, including data inquiries and media inquiries, please contact:
- Data Inquiries – Economic Indicators Division, Residential Construction Branch
Phone: 301-763-5160
Email: [email protected] - Media Inquiries – Public Information Office
Phone: 301-763-3030
Email: [email protected]
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Homebuilders still glum with rates still high – Marketplace
The state of the housing construction industry became clearer this week, with data showing that builders’ confidence in the market for new single-family homes ticked down last month, continuing a trend going back to April. According to a survey from the National Association of Home Builders and Wells Fargo, there is still a major shortage of housing in many parts of the country. However, elevated mortgage rates are holding back the housing market, as owners are reluctant to sell and give up their low-rate mortgages. Builders and suppliers are currently on the sidelines, waiting for a more favorable environment. Despite the current challenges, there is cautious optimism for the future, as potential rate cuts and falling lending rates for construction loans could boost the market for new homes and related industries.
New Construction Home Prices, Size Fall by Cutting Hallways | Money
Designers of new construction homes are eliminating hallways to make them more affordable and maximize functional space. By Tetris-ing functional rooms together and avoiding wasted square footage on non-functional areas like hallways, builders can offer smaller, lower-priced homes that meet the demands of the market. According to a study from the National Association of Home Builders, the median sales price for brand-new homes in the U.S. is now cheaper than existing homes. This trend of creatively maximizing space and decreasing costs is helping to address the affordability gap in the housing market.
Showcase of Homes features local builders, latest design trends
The Greater Montgomery Home Builders Association is hosting a Showcase of Homes on July 20-21, featuring the 2024 Ideal Home built by Lowder New Homes. This event provides prospective buyers with an opportunity to explore the latest design trends and interact with builders. Over 30 homes in more than 20 neighborhoods will be featured, including new homes at Lake Martin for the first time ever. All showcased homes will be open for tours and purchases. Visit the Greater Montgomery Home Builders Association website for a complete list of homes and their locations.