According to the Census Bureau This Week in Real Estate single-family housing starts increased for the seventh consecutive month in November, climbing to the highest level since 2007 and 27.1% higher than last year. Below are a few newsworthy events from thethird week of December that influence our business:
Single-Family Housing Starts Reach Highest Level Since 2007. Single-family housing starts continued their seven-month climb in November, coming in to the highest level since 2007, according to the Census Bureau. Housing starts rose 1.2% in November compared to October and are up 12.8% year over year to a seasonally adjusted annual pace of 1.58 million starts. Single-family housing starts rose 0.4% from October and 27.1% compared to last year. “Additionally, permits for new single-family construction also rose to 2007 highs, potentially an indication that we might see the increase in homebuilding continue into early 2021,“ Kan said. First American’s Deputy Chief Economist Odeta Kushi said that the rise in housing starts is a welcome sign of new single-family inventory to come and that 2021 may be the year of the homebuilder. The National Association of Home Builders and Wells Fargo Housing Market Index measuring builder confidence faltered a bit this month after three months of record highs, falling four points to 86. But it’s still the fourth month in survey history the score broke 80.
Solid Gains for October Single-Family Permits. Over the first ten months of 2020, total single-family permits issued year-to-date (YTD) nationwide reached 808,301. On a year-over-year (YoY) basis, this is an 11.1% increase over the October 2019 level of 727,301. Year-to-date ending in October, single-family permits across the four regions ranged from an increase of 13.3% in the South to an increase of 7.0% in the Northeast.