Tag Archives: housing market

Key Factors in New Home Sales Weakness

As discussed in this morning’s Economic Alert by Chief Economist Diane Swonk, new home sales continue to lag expectations. June’s estimate came in 69,000 units under the consensus estimate. The lackluster recovery in new home sales should be cause for concern, in terms of the housing recovery and for the overall economy. There are many [...]

New Home Sales Disappoint

New home sales dropped to a 406,000 rate in June and were revised down for the month of May. The biggest losses were in the South, where builders have complained about labor shortages. A shortfall in the South also has a disproportionate effect on the overall figures

Home Sales Rise – Still not Enough

Existing home sales finally showed some signs of life in June, crossing the five million unit mark for the first time since last October. Sales for May were also revised up a bit. We still have a long way to go, however, before matching the highs hit last summer

Housing Starts Fall Again

Housing starts dropped back below the one-million unit mark to 893,000 in June, while starts for May were revised down. Losses were posted in both single- and multifamily starts. Single-family starts were at the lowest pace in more than a year; that is particularly disappointing given that the bulk of the economic momentum from housing [...]

Tepid Production and Mortgage Figures Reinforce Gradualism

Industrial production rose 0.2% in June and was revised down slightly for the month prior. The bulk of the weakness occurred in consumer goods, which had been extremely strong earlier in the quarter. Hopefully, this weakness is transitory as the auto sector and big-ticket consumer goods are expected to provide a tailwind for the economy [...]

Retail Sales Better then Headline Suggests

Retail sales rose a tepid 0.2% in June, but were revised up for the month of May. That is the second month in a row that sales were revised up; it means we are behind the curve on a much-needed catch-up in consumer spending following the winter doldrums. Vehicle sales tumbled,

Inflation up, Housing down

The Consumer Price Index (CPI) rose 0.4% in May, the largest increase since early 2013. The rise in food prices on the heels of a harsh winter, disruptions to the planting season and drought in the West pushed up the price of food at home by 0.7%, which was no surprise to anyone shopping at [...]

New Home Sales Rise

New home sales rose between March and April and were revised up for the month of March. This is a bit of welcome news, given the tepid sales we saw in the existing home sales market yesterday. Gains were driven almost entirely by a snapback in the South, which was hit hard by winter storms [...]

Home Sales Remain Sluggish

Existing home sales barely budged between March and April, despite still record-low rates and high affordability. Sales are still down almost 7% from a year ago and even more from the peak we saw last summer. Everything from a dearth of first-time buyers who are either still un- or underemployed with a debilitating overhang of [...]

Housing Starts Catch up in April

Housing starts jumped back above the million-unit mark in April, providing a sliver of sunlight through what has been an otherwise cloudy week for economic data.  Gains were concentrated in multifamily starts; that reflects the lean toward rentals over single-family units.