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Builder Confidence in the 55+ Housing Market Drops Slightly in Fourth Quarter

In this recent article from the National Association of Home Builders (NAHB), many of the same issues are concerning to home builders - cost of materials and labor shortage. Demand in 55+ housing remains strong, but affordability continues to be a concern. Overall sentiment remains high, but these concerns have lowered builder confidence in the 55+ market by four points to 68 in the 4th quarter. Continue below for the full article.

Builder Confidence in the 55+ Housing Market Drops Slightly in Fourth Quarter

(NAHB)

Builder confidence in the single-family 55+ housing market dropped four points to 68 in the fourth quarter, according to the National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI) released today.

The 55+ HMI measures two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each segment of the 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic).

“Overall, builder and developer sentiment in the 55+ housing market remains positive,” said Harry Miller III, chairman of NAHB's 55+ Housing Industry Council and president of Regal Builders LLC in Dover, Del. “However, development costs and lack of labor are contributing to affordability concerns and preventing even more robust growth in the market.”

For the three index components of the 55+ single-family HMI, present sales fell five points to 73, expected sales for the next six months dropped two points to 75 and traffic of prospective buyers fell four points to 51.

The 55+ multifamily condo HMI rose five points to 58. All three index components posted increases from the previous quarter: Present sales rose four points to 60, expected sales for the next six months went up five points to 61 and traffic of prospective buyers increased six points to 53.

All four components of the 55+ multifamily rental market went up from the third quarter: Present production increased eight points to 65, future expected production jumped 11 points to 66, present demand increased 10 points to 82—a record high—and future expected demand rose nine points to 83—also a record high.

“Although down from a record-high previous three quarters, the 55+ HMI is still strong at 68 and is consistent with the gradual upward trend the index has shown since 2013,” said NAHB Chief Economist Robert Dietz. “The strong performance of the 55+ indices for the multifamily market, meanwhile, is in line with the surge in multifamily starts at the end of 2019.”

For the full 55+ HMI tables, please visit nahb.org/55hmi.

Best in American Living™ Awards Showcase Top Design Trends for 2020

Best in American Living™ Awards Showcase Top Design Trends for 2020

Last month the National Association of Home Builders held their annual International Builders' Show in Las Vegas, NV. Of the highlights of the conventions the awards are always highly anticipated and these awards for Top Design Trends for 2020 are certainly noteworthy. PW&A did not attend the International Builders' Show this year, though we did last year. Continue reading below for the full article from the NAHB - Best in American Living™ Awards Showcase Top Design Trends for 2020.

(NAHB) 

Over 150 single-family, multifamily, interior design, remodeling and community projects were honored at the 2019 Best in American Living™ Awards (BALA) ceremony held during the National Association of Home Builders (NAHB) International Builders’ Show in Las Vegas. The awards were sponsored by Monogram Appliances, and the media sponsor was Professional Builder.

Judges awarded eight Best in Region, five Of the Year and one Judges’ Discretionary Award for Innovative Site Design. In addition, one Game Changer award was given as well as one “Wow!” award, a special award given to a project with a jaw-dropping, one-of-a-kind design detail. These projects represent the nation’s best in home and community design, interior design and remodeling.

BALA winners showcase top design trends that home buyers can expect to see in homes and communities over the next several years, among them:

Colorful kitchens. Often found first on the island and then on lower cabinets, many designers are finding ways to punch up today’s new and remodeled kitchens. Judges saw cool aquas, dark woods and new, colored textures in many of this year’s applicants. It could take the form of a deep blue, on trend with many of 2020 color forecasts, or fun wallpaper, or earthy tones.

Crisp colors paired with warm woods. More designers are pairing otherwise “stark” or “cool” palettes with warm wood tones—either real wood or manmade—to create a look that is both dramatic, yet homey; high-end, yet comfy.

Curated design details. In every type of housing, from single- to multifamily, from remodels to communities, it’s clear that buyers want their next home to feel personalized to their taste. Every detail matters—from ceiling textures to shelving choices to mullion size—and today’s educated buyers won’t settle for less.

Expansive, large-format windows. Almost considered a standard feature in single-family custom homes, expansive, oversized windows—often with limited vertical interruptions—are on trend in all housing types. Even in denser areas, architects are finding interesting ways to incorporate large panel glass that lets in light but keeps out nearby neighbors.

High-quality signature entries. In our often car-centric society, residents spend a lot of time coming in through garages, but in 2020, expect to see a greater focus on front entries and improved streetscapes. A signature entry, especially on a production home, adds a one-of-a-kind appeal for future owners.

Non-traditional storage solutions. Instead of traditional cabinetry, designers will opt for shelving, both as a storage solution and as a design element. Outside of the kitchen, architects are creating more artful interpretations of traditional storage spaces, like wine cellars or under-stair displays. Artfully crafted, these storage areas purposefully blend into the room, instead of another typical closet door along a hallway.

Personalized lighting design. No matter the price point, buyers want a personalized feel to their homes, whether rental or for sale, and lighting is an obvious choice to offer that personalized feel. Lighting, like other design details, should not be an afterthought, and just installing what’s on hand without added thought about placement won’t fly with the 2020 buyer.

Sophisticated in/outdoor connections. With new technologies and increased availability of glass walls, pocket doors and large windows, new and remodeled homes alike are benefiting from seamless indoor/outdoor connections, both visually and physically.

Texture paradise. In 2020, designers are opting for more mixed metals, mixed materials and mixed textures to add depth to their designs. Wall paper, back on trend, is a great way to add additional texture to a space. Instead of full-room papering, designers are using wallpaper to create statement walls, focal oints or large pieces of art.

Thoughtful, well-edited design: Architects are pushing for more character and uniqueness, especially in production homes. Well-edited doesn’t necessarily equal simpler, but it does mean there needs to be a genuine purpose of place and points of interest that draw the eye across the façade—without all the fussiness of past decades. In plan, architects are making smart spatial decisions to match a cultural preference towards simplicity in living, especially in the age of constant technological interruptions and connections.

Unique wood detailing: The use of wood has been up-trending for the past couple of years, but in 2020, expect unique wood details and use of wood to create texture, ambiance, lighting design and more.

What’s old is new again: A renewed focus on genuine sense of place makes adaptive reuse and historic preservation projects a focus of 2020. By focusing on what came before, designers can build on an existing history instead of starting over, and residents will feel more connected to the place they now call home.

More information about this year’s winners and trends can be found at bestinamericanliving.com.

Builder Confidence Hits 20-Month High

Builder Confidence Hits 20-Month High

In this recent article from the National Association of Home Builders, builder confidence has hit a 20-month high for newly-built, single-family homes. Fueled in part by low mortgage rates, job growth and a reduction in new home inventory, builders remain confident that the industry will continue on its current trajectory barring any unforeseens. Builders continue to hold concerns about the ongoing supply side constraints and worry about a slowing economy. Read the complete article below.

Builder Confidence Hits 20-Month High

(NAHB), 

Builder confidence in the market for newly-built single-family homes rose three points to 71 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. Sentiment levels are at their highest point since February 2018.

“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.

“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All the HMI indices posted gains in October. The HMI index gauging current sales conditions increased three points to 78, the component measuring sales expectations in the next six months jumped six points to 76 and the measure charting traffic of prospective buyers rose four points to 54.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a one-point gain to 60, the Midwest was up a single point to 58, the South registered a three-point increase to 73 and the West was also up three points to 78.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found atnahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

 

Builder Confidence Hits Yearly High in September

Builder Confidence Hits Yearly High in September

In this recent article from the National Association of Home Builders, builder confidence remains high for newly-built single-family homes, fueled in part by lower interest rates and steady demand. A shortage of land/lots and labor continues to be an issue for builders, however. Continue reading the full article below.

Builder Confidence Hits Yearly High in September

(NAHB), Builder confidence in the market for newly-built single-family homes rose one point to 68 in September from an upwardly revised August reading of 67, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. Sentiment levels have held in the mid- to upper 60s since May and September’s reading matches the highest level since last October.

“Low interest rates and solid demand continue to fuel builders’ sentiments even as they continue to grapple with ongoing supply-side challenges that hinder housing affordability, including a shortage of lots and labor,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.

“Solid household formations and attractive mortgage rates are contributing to a positive builder outlook,” said NAHB Chief Economist Robert Dietz. “However, builders are expressing growing concerns regarding uncertainty stemming from the trade dispute with China. NAHB’s Home Building Geography Index indicates that the slowdown in the manufacturing sector is holding back home construction in some parts of the nation, although there is growth in rural and exurban areas.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions increased two points to 75 and the component measuring traffic of prospective buyers held steady at 50. The measure charting sales expectations in the next six months fell one point to 70.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a two-point gain to 59, the West was also up two points to 75 and the South moved one point higher to 70. The Midwest was unchanged at 57.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

Builder Confidence Trending Higher as Interest Rates Move Lower

With the recent interest rate cut, it's no wonder that builder confidence would trend slightly higher, according to this recent article from the National Association of Home Builders. Demand remains high for single family homes, however construction costs continue to rise, and labor shortages are still problematic. Continue reading below for the full article.

(NAHB)

Builder confidence in the market for newly-built single-family homes rose one point to 66 in August, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. Sentiment levels have held at a solid 64-to-66 level for the past four months.

“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. 

“While 30-year mortgage rates have dropped from 4.1 percent down to 3.6 percent during the past four months, we have not seen an equivalent higher pace of building activity because the rate declines occurred due to economic uncertainty stemming largely from growing trade concerns,” said NAHB Chief Economist Robert Dietz. “Although affordability headwinds remain a challenge, demand is good and growing at lower price points and for smaller homes.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions increased two points to 73 and the component measuring traffic of prospective buyers rose two points to 50. The measure charting sales expectations in the next six months fell one point to 70.

Looking at the three-month moving averages for regional HMI scores, the South moved one point higher to 69, the West was also up one point to 73 and the Midwest inched up a single point to 57. The Northeast fell three points to 57.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.

Builder Confidence Holds Firm in July

Builder confidence continues to hold steady even though labor shortages continue to be an issue. Home prices continue to rise putting many out of the market for a new home. While there are many concerns about the housing market and the economy, confidence holds firm for now. Read the whole article from the National Association of Home Builders below.

Builder Confidence Holds Firm in July

(NAHB), Builder confidence in the market for newly-built single-family homes rose one point to 65 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. This marks the sixth consecutive month that sentiment levels have held at a steady range in the low- to mid-60s.

“Builders report solid demand for single-family homes. However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.

“Even as builders try to rein in costs, home prices continue to outpace incomes,” said NAHB Chief Economist Robert Dietz. “The current low mortgage interest rate environment should be getting more buyers off the sidelines, but they remain hesitant due to affordability concerns. Still, attractive rates should help spur new home purchases in large metro suburban markets, where approximately one-third of new construction takes place.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All the HMI indices inched higher in July. The index measuring current sales conditions rose one point to 72, the component gauging expectations in the next six months moved a single point higher to 71 and the metric charting buyer traffic increased one point to 48. Looking at the three-month moving averages for regional HMI scores, the South moved one point higher to 68 and the West was also up one point to 72. The Northeast remained unchanged at 60 while the Midwest fell a single point to 56.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.