My apologies for delivering This Week in Real Estate a day later than normal. It is hard to imagine in today’s age of how convenient and accessible technology is everywhere, that you find a place that has no cell service and no wi-fi connection, but my family and me found such a place this weekend. A fantastic week of reporting with respect to housing starts, builder confidence and foreclosure starts top the headlines in This Week in Real Estate. Below are a few of the highlights from the second full week in July that influence our business:
* Housing Starts in U.S. Surge to Second Highest Level Since 2007. U.S. housing starts rebounded strongly in June and building permits surged to a near eight-year high, pointing to a rapidly strengthening housing market. Groundbreaking increased 9.8 percent to a seasonally adjusted annual pace of 1.17 million units, the Commerce Department said on Friday. Permits for future home construction increased 7.4 percent to a 1.34 million-unit rate, the highest level since July 2007. A survey on Thursday showed builders’ confidence held at a more than 9-1/2-year high in July, suggesting that both permits and groundbreaking have scope to rise further. Full story… http://www.cnbc.com/2015/07/17/strong-us-groundbreaking-building-permits-boost-housing-outlook.html
* Builder Confidence Highest Since 2005. The NAHB/Wells Fargo Housing Market Index (HMI) reached 60 in July and along with the one-point upward revision to June’s index mark a high in the index not seen since November 2005. The HMI measures builder confidence in the market for newly built, single-family homes. Two of the three components of the index also rose to levels last seen in late 2005. The index of current sales rose one point from the June level to 66, topping almost 10 years of values below that level. The index for expected sales rose two points from June’s 69 to 71 also the highest in almost 10 years. The index for traffic fell one point to 43 from the six month high in June of 44. Full story… http://eyeonhousing.org/2015/07/builder-sentiment-reaches-new-high/
* U.S. Foreclosure Starts Come at 10-Year-Low. First-half foreclosure starts 2015 were at their lowest level in any year since RealtyTrac began tracking in 2006 – a 10-year low. RealtyTrac recently released its Midyear 2015 U.S. Foreclosure Market Report, which shows total number of U.S. properties with foreclosure filings down 13% from the previous 6 months and down 3 percent from the same time period in 2014. A total of 304,439 U.S. properties started the foreclosure process in the first half of the year, down 4 percent from a year ago and 18 percent below foreclosure starts in the first half of 2006 before the housing price bubble burst in August 2006. “U.S. foreclosure starts have not only returned to pre-housing crisis levels, they have fallen well below those pre-crisis levels and are still searching for a floor, down 4 percent from a year ago,” says Daren Blomquist, vice president at RealtyTrac. Full story… http://www.realtytrac.com/news/foreclosure-trends/midyear-2015-foreclosure-market-report/
Have a productive week!