Tag Archives: housing market
The Institute for Supply Management (ISM) index dropped to 48.6% in November, affirming other evidence that the manufacturing sector is now in a contraction. Losses were fairly broad-based with the exception of employment, which moved back above the 50% threshold in November.
In October, 495,000 new homes were sold; that increase followed a downward revision to September. Gains were broad-based with three of the four regions posting increases. The median sales price moved down from the previous month as the composition of homes sold shifted towards lower-priced properties.
In October, housing starts slipped to a 1.06 million unit pace, nearly 60% below household formation. This is causing acute shortages for those looking for a place to live, particularly to rent,
Industrial production dropped a more-than-expected 0.2% in October. All of that weakness, however, can be attributed to sharp declines in utilities and mining. Milder-than-usual autumn weather pushed down utilities, while mining and extraction continued to suffer from low prices at the gas pump.
New home sales for September came in well below expectations at 468,000 following a downward revision to the August data.
In September, existing home sales surged to a 5.55 million-unit annualized rate, well above expectations but in line with our forecast for ongoing healing in the housing market. Data for August were revised down, but the trend is still positive.
In September, 1.2 million homes were started, marking another increase after being revised up for the month prior. Much of the annualized increase was concentrated in the multifamily segment; single-family starts came in essentially flat.
The ISM index of manufacturing activity slowed to 50.2 in September, which suggests that overall manufacturing activity is still expanding but only slightly.
In August 552,000 new homes were sold, 30,000 more than were sold in July. Much of the increase was driven by a pop in sales in the South, with the West and Northeast posting modest increases as well.
Existing home sales pulled back in August, after posting three consecutive months of growth. Sales were down 270,000 to 5.3 million units sold on an annualized basis. The decline is off of an eight-year high set in July.