Tag Archives: South Salem Luxury Homes

Lower rates will fuel housing in 2020 | South Salem Real Estate

Housing could fuel economic growth for the first part of 2020, a new economic outlook from Fannie Mae shows.

Fannie Mae upgraded its economic outlook to a gross domestic product growth of 1.9% in 2020, according to its latest commentary from the Economic and Strategic Research Group. This is due to expected easing trade tensions, stimulative fiscal policies and continued consumer spending

This year, the third quarter added to GDP growth for the first time in more than 1.5 years, Fannie Mae’s data shows. And this growth is expected to continue into the second quarter of 2020.

Fannie Mae explained housing should also continue to function as a positive contributor to growth in the near term, as indicated by both new and existing single-family home sales advancing in the third quarter, as well as pending home sales, permits, and starts. However, persistent supply and affordability constraints continue to hold back household formation, inhibiting housing market activity.

“As we forecasted, housing supported the larger economy in the third quarter, and we expect it to continue to play a productive role through the first half of 2020,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Positive contributions from single-family housing construction, home improvements, and brokers fees pushed residential fixed investment growth to a robust 5.1% annualized pace this past quarter, and we forecast continued but moderating strength as construction activity and home sales growth continue at a slower pace.”

“With mortgage rates normalizing, we expect a decline in refinance activity in 2020, with the refinance share of originations dropping from a projected 37% in 2019 to 31%,” Duncan said. “Of course, the housing market as a whole remains constrained by the persistent supply and affordability issues, which is particularly unfortunate given the current strength of consumer demand for reasonably priced homes.”

Housing is contributing to growth, but consumer spending is expected to remain the primary driver of economic growth for the forecast horizon, and business fixed investment will benefit as additional corporate expenditures work to meet consumer demand.

“Even as global uncertainties mount, we continue to expect the domestic economy to produce solid, if not spectacular, growth,” Duncan said. “A stronger-than-expected third quarter contributed to the downward revision to our fourth-quarter forecast, as some of the previously expected weakness in trade and inventories appears likely to have been pushed back into this quarter. Still, consumer spending is likely to continue driving the expansion forward, and with the passage of the budget act and a reprieve in trade tensions we’ve revised upward our forecast for full-year 2020 growth.”

But risks still remain on the horizon. For example, trade talks between the U.S. and China continue to pose negative risks to economic growth. And because of this uncertainty, Fannie Mae predicts we could see one last rate cut from the Federal Reserve in early 2029 before pausing for the rest of the year.

“We also continue to expect the Fed to cut interest rates only one more time in the foreseeable future, in early 2020, as a hedge against the sizeable downside risks and to counteract muted inflation,” Duncan said.

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Housing starts jump | South Salem Real Estate

Total housing starts posted a 12.3 percent increase in August (1.364 million units) compared to an upwardly revised July estimate of 1.215 million units, according to the joint data release from the Census Bureau and HUD. Relative to August 2018, total starts are 6.6 percent above the annual pace of 1.279 million units.

Single-family production in August posted a monthly increase of 4.4 percent to a seasonally adjusted annual rate of 919,000. Single-family starts in July were revised up to 880,000 units. The three-month moving average for single-family in August is 888,000 units.

On a year-to-date basis, single-family starts are 2.7 percent lower as of August relative to the first eight months of 2018. Single-family permits, a useful indicator of future construction activity, rose 4.5 percent in August (866,000 units) compared to July but have registered a 4.1 percent loss thus far in 2019 compared to last year.

Regional data show, on a year-to-date basis, positive conditions for single-family construction only in the South (+1.1 percent). Single-family construction is down 6.9 percent in the West, 4.8 percent in the Midwest, and 11.9 percent in the Northeast.

Multifamily starts (2+ unit production) registered an increase of 32.8 percent in August to a 445,000 annual rate compared to July. On a year-to-date basis, multifamily 5+ unit production is slightly up 0.4 percent thus far in 2019, while multifamily 5+ unit permitting is trending higher with an increase of 4.2 percent relative to the first eight months of 2018.

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Home Price Appreciation Continues | South Salem Real Estate

National home price appreciation continued in September, while local home prices grew at different rates. All of the 20 metro areas had positive annual growth rates.

The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 9.0% in September, faster than an 8.2% increase in August. It was the highest seasonally adjusted annual growth rate since October 2013. Tight inventory of existing homes is contributing to strong house price appreciation.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 4.2% in September, following the 9.7% increase in August.

Figure 2 shows the annual growth rate of home prices for 20 major U.S. metropolitan areas. In September, local home price varied greatly and its annual growth rates ranged from 2.2% to 16.4%. However, all 20 metro areas tracked recorded year-over-year appreciation.

Among the 20 metro areas, Atlanta, San Francisco and Tampa had the highest home price appreciation. Atlanta led the way with 16.4%, followed by San Francisco with 14.6% and Tampa with a 12.7% increase. Half of the 20 metro areas exceeded the national average of 9.0%. The ten metro areas that had lower home price appreciation than the national level were: Los Angeles (8.1%), Denver (7.9%), Charlotte (7.4%), Seattle (6.8%), Miami (6.6%), Chicago (6.4%), Portland (6.2%), Detroit (3.9%), Washington, DC (3.7%) and Minneapolis (2.2%).



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SantaCon is back | South Salem Real Estate

Photo by Kena Betancur/Getty Images

Get ready, New Yorkers: SantaCon is about to flood streets (and bars) of New York once again. If you live under a rock and haven’t seen or heard of SantaCon, it’s that one time of year where flocks of Santa and elf impersonators embark on a festive bar crawl, making a booze-fueled scene through the city that you’ll find either amusing or annoying to watch. It all goes down this Saturday, December 9.

Update: The SantaCon organizers have announced the locations for this year’s event, and as predicted, it’ll be concentrated in Manhattan—namely in Midtown and down to the East Village. The festivities will kick off at the James A. Farley Post Office across from Penn Station (of course) at 10 a.m., and things will continue on from there.

If you’re looking to participate, we recommend keeping an eye on SantaCon’s official website and Twitterpage for more details.

But if you want to avoid the whole thing (and something tells us that if you’re reading this, you do), we have a few tips along with some alternatives that don’t involve being around a swarm of drunken Santas gallivanting around.

Stay in the outer boroughs. There’s less of a risk of running into any hordes of Santas in the outer boroughs. Though we do recommend staying away from neighborhoods like Williamsburg and Bushwick, since they’re a little to close to Manhattan for comfort.

Avoid going through Midtown if at all possible. Bars on the SantaCon route tend to span much of Midtown, so if you had plans in the area, maybe save it for Sunday. This includes riding the subway through the area. Nowhere is safe from Santas.

Get the heck out of town. There are likely to be some bridge-and-tunnel Santas coming in on the LIRR or Metro-North—both of which have imposed alcohol bans on Saturday, along with the New Jersey Transit, who is imposing a ban on all liquid beverages. If you’re going in the opposite direction of Manhattan, you should be safe.

And 5 fun things to do that are far away from SantaCon:

Check out local artwork in the Bronx. The Poe Park Visitor Center will be hosting its fifth annual Whimsical Winter Wonder… Exhibition, where you can catch artwork from over a dozen established and upcoming local artists.

Head on over to a Winter Wonderland. Enjoy an afternoon filled with crafts, hot chocolate, and a trackless train as part of Winter Wonderland, happening at Brookville Park in Queens.

Go dancing on a vintage train. The New York Transit Museum will invite revelers onto the vintage subway cars for a swing-themed dance party. The Nostalgia Swing Train will travel from Second Avenue to the museum’s Downtown Brooklyn location, where the party will continue. Costumes—of the non-Santa, ’40s-inspired variety—are encouraged.

Learn how to make a holiday wreath. Have an itch to learn how to make your own holiday wreaths? If so, here is your chance. Horticulturist and landscape designer Wambui Ippolito will be conducting a workshop at Staten Island’s Snug Harbor Cultural Center. Admission is $75 and includes all materials.

Embark on an adventure at the Bronx Zoo. If you really want to do something out of the ordinary, make your way to the Bronx Zoo and check out their Treetop Adventure center where you can climb across various obstacle courses and enjoy two zipline adventures.

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Second coming of nest | South Salem Real Estate

“We have better light rings than any other products on the market,” says Adam Mittleman. This is a sentence that I have never before heard uttered by anyone, even after a long time living on Planet Earth. But because I am visiting Nest, and Mittleman is its Head of Product Design, working on a new gadget that this startup-turned-controversial Alphabet division is launching, I can’t say I am surprised. After all, light rings—the shimmering glow-circles that allow digital appliances to provide feedback—have been a leitmotif for Nest throughout its eventful journey of disrupting the home. Thermostats, smoke alarms, and now Nest’s new home security system signal users via rings. Nest has given a lot of thought to them. Literally years of thought.

Naturally, there is a light ring on the Nest Guard, which is the hub of the Nest Secure suite. That suite has been in the works since well before the company was acquired by Google in January 2014 and then underwent a second recalibration in October 2015 when Google made Nest one of the divisions (“bets”) in the Alphabet archipelago. Depending on the message the new Nest Guard wants to convey, its ring might glow red, yellow or green.

Steven Levy is Backchannel’s Editor in Chief.


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Mittleman passionately cites the three potential problems that occur if a company does not pay attention to the design of its light rings. “One, the light is too direct, so that calls too much attention to itself,” he says. “Two, color uniformity can be really bad. Say, a yellow might look like some mix between oranges and reds and yellows, and it just doesn’t look really good. Three, hotspots. That’s the most common affliction—they’ll be much brighter in one location and then get dim and then bright and then dim and bright and dim.”

Red, yellow, green. In its brief history, Nest’s own progress might also be charted by a color-shifting light ring signaling the unit’s varying fortunes. Because Alphabet doesn’t break out sales figures or other numbers for Nest, it’s hard to say for sure what those actual fortunes are, but these days a yellow beam might be cutting the company a break. For a long stretch, Nest’s biggest splashes have been product recalls, destructive public infighting, and the departure of its CEO and cofounder. Meanwhile, Nest hasn’t announced a major new product category in ages. Until today. In Nest’s biggest moment in years, it is announcing a series of products that take it onto new ground—and, it hopes, flips its light ring to green for good.

The new products include the aforementioned Nest Secure, a home security system; Nest Hello, an internet-connected doorbell; an outdoor version of its Nest Cam IQ security camera (which uses Google face recognition to identify people who wander into range); and, perhaps most significant, the integration of the voice-based Google Assistant into Nest products, beginning with the indoor IQ camera.

Nest’s new security system (bottom), video doorbell (left), and outdoor security camera (right).

The launch not only brings Nest into new territory, but also sends a signal that despite changes and setbacks, it’s still powered by the same impulse: to transform the home by reinventing mundane home appliances and services with internet connectivity and cutting-edge design. Since this needs internet connectivity, you would need a fast internet connection. Learn more about getting a fast ISP provider here. “The DNA hasn’t changed,” says Matt Rogers, who cofounded the company in 2010 with its first CEO, Tony Fadell. “But I think we finally are able to achieve what we’ve always talked about doing. We’re in millions of homes now. We’ve laid this foundation of products that solve really important problems and now we can link them together and do more with them.” Given, of course, that the lights glow green.

The face of Nest used to be Fadell, a visionary product designer best known for his iPod work, and a famously exacting leader. (He reportedly tried to cut short his cofounder’s honeymoon so the new bridegroom could address some product crises. Rogers refused.) The new leader would prefer not to be its face. When Fadell left in June 2016, Larry Page replaced him with Marwan Fawaz, a nuts-and-bolts guy who is much in the mold of other recent Alphabet division leaders: experienced, middle-aged guys (always guys) known less for vision than for delivering quarterly results. Though Fawaz is not reticent about invoking his considerable experience, his approach is methodical and straightforward. And decidedly not flamboyant. “They call me No Drama Marwan,” he says.

Fawaz’s previous jobs have involved launching and managing products for cable and telecom firms. The jewel of his resume was leading the Motorola Home product, a rare success in the troubled recent history of that firm. Also of note is his chairing the Technical Advisory Board of the security firm ADT. Fawaz says that his marching orders from Alphabet CEO Page were clear: “We want to make sure the presence in the home, and the business, is meaningful and global and [that] it’s successful. That it could thrive on its own as a business. You can interpret that by financial discipline, bringing new products to market, scaling the business.” Though it was widely believed that Alphabet was considering offers to sell off Nest (a rumor confirmed to me by knowledgeable sources), Fawaz assured Nesters on day one that the company was not for sale. He takes pains to assure me that despite what some may believe, the company will not go back on the block. “Selling Nest is not the right decision,” he says. “Nest has so much potential being in the Alphabet family.”

Nest CEO Marwan Fawaz.

Fawaz sees his job as carrying forth the Nest mission by scaling its current products to larger audiences and markets. “We’re about creating the conscious home,” Fadell once saidabout the mission. “To take a truly important device that has had no great innovation and make that device really, really great.”

But that message got lost in a series of blunders and corporate shifts. The calamities began soon after the Google acquisition, when the company discovered a serious flaw in its smoke alarm. Its coolest feature, the Nest Wave—the ability to shut down a false alarm by waving your hand—held a potential danger: Under some circumstances it could have kept the alarm silent during a real fire or carbon monoxide release. Though no case like that had ever been reported, Nest halted sales for a few weeks and issued a recall to disable the feature in 440,000 Protect units.

During the next few years, news from Nest always seemed to have a bite to it. Users pestered the company with lawsuits about marketing promises and other issues. Rumored products didn’t appear. And everybody wondered just how many gadgets Nest was selling. Alphabet’s silence did not build confidence.

Nest’s video doorbell system.

In June 2014, Nest bought Dropcam for $555 million, filling a gap in its smart home strategy with the connected camera leader. Though Nest’s painstaking integration of the technology into its system proceeded, however, it failed at combining the two companies’ cultures. Dropcam’s former CEO Greg Duffy, who had joined Nest to head the camera team, became so frustrated—primarily with Fadell—that he reportedly suggested that Page remove Fadell and make himCEO. After Duffy was rebuffed, he took his gripes public in a scathing Medium post.

Meanwhile, under the new Alphabet structure, tough-minded CFO Ruth Porat was putting the “bets” on a shorter leash, demanding better quarterly results. This didn’t please Fadell, who believed that investing in innovation was more important at the moment than focusing on profits. (All these woes and more were mercilessly recounted in a well-circulated takedown by The Information.)

Fadell left Nest in June 2016. Fawaz immediately replaced him.

(Some wondered why Fadell’s cofounder Rogers did not get the nod. His answer is: not yet. “I love spending time on product and design [but] having a sole product- and design-focused CEO is not enough. You need someone who’s focused on either the business or product, but it’s hard to do both. I think the split that Marwan and I have works really well. Maybe I’ll be CEO of Nest one day. Maybe a CEO of a different company.”)

Nest cofounder Matt Rogers.

The pileup of calamities might have hurt Nest’s profile among the digerati. But those who remained at the company (though, indeed, some Fadell loyalists have split) say that aside from the personalities of the respective leaders, the culture is still pretty much the same. One positive sign was the return early this year of Nest’s original VP of technology, Yoky Matsuoka, who left the company in 2015 and wound up at Apple. “When I started to look for the place where I can really have the most impact, I was really surprised to see that Nest was on the top of the list,” she says.

The real measure of Nest’s success, however, rests on its sales figures. Alphabet keeps those closer than the secrets of its search algorithm—but if you shake the tea leaves just right, you can see signs that Nest has sold pretty well. The fact that it had to recall 440,000 smoke detectors indicates that, even at its high price, the Nest Protect was a hit. Also, Nest products always seem to hold high positions on Amazon’s best seller lists. As I was researching this story, I actually got some concrete evidence: While talking about how he hoped the company would grow in the future, one of Nest’s executives blurted out a number: “Nest is on track to be a billion-dollar run rate company by the end of the year.” And that’s before Nest hits the market with the roster of products it’s launching today.

Making a security system—a connection-dependent home appliance whose current incarnations have been driving users crazy—has always seemed to be in Nest’s wheelhouse, and everyone has long assumed the company was working on one. Indeed, Nest has being doing just that—for almost four years. So the introduction of Nest Secure (shipping in November) and the companion video doorbell (out early next year) have been years in the making. In that time, Nest has finished up a communications protocol (Weave) and a wireless standard (Thread) to develop a platform where not only Nest products but also outside developers could plug in together and connect a whole Internet of Things-worth of stuff. But another reason it took so long was the high stakes of getting something wrong. “If a music app fails, people can say, ‘Wow. That’s a crappy product.’ The consequences aren’t so big,” says Matsuoka, who is now Nest’s Chief Technology Officer. “But in security, you have to make sure the door sensor works reliably every time the door cracks open.”

Nest CTO Yoky Matsuoka.

As with most Nest products, the apparent star of the show is a control device that gives users a window into the workings of a tool that was previously buried in analog obscurity. In the case of Nest Secure, that is a sleek tabletop disk—much in the mold of the recent routers from Eero or Google—that replaces the standard (ugly) keypad where customers anxiously tap in their codes before an alarm shrieks.

Head of Product for Nest Secure Sophie Le Guen explains the advantages: flexibility in placement (not everybody uses the same door to enter a house); no need to rip open the walls to install wiring; and it looks good. It also provides a number of ways to avoid what Nest discovered was the biggest failing of current systems: false alarms, the majority of which are caused by the same beloved family members (and their pets) that the system is meant to protect. The most important way of defeating those unwelcome, ear-piercing warnings (the Nest Guard is capable of 85db of eardrum misery) is a walnut-sized fob known as the Nest Tag—a $25 personalized pebble that verifies (via near-field communications) someone who’s supposed to be there. If you open a door or window when the system is alarmed, holding the Tag near the Nest Guard prevents the sound blast. “I can give it to my mother-in-law, I can give it to my kid, and they have no stress about how to arm and disarm because you just tag in and tag out,” says Le Guen. Not that you have to give your mother-in-law (or, say, the dogwalker) constant access: Using the Nest App, you can specify limited times and dates that the tag will work.

Nest’s security system.

Like memorable character actors crushing in cameos, the real showstoppers of Nest products are often its sensors—and this is especially the case with Nest Secure. Called Nest Detect, the security system’s new $59 sensor performs double duty as a motion detector and a magnet-equipped monitor that detects when a door or window is opened. Another advantage of the Nest Detect is something it doesn’t do: light up when it detects motion. “People don’t want to be reminded that there’s a security device [watching them],” says Le Guen.

Vermont farmhouse style | South Salem Real Estate

Steven Favreau is the type to go big – and go home.

When he set out to put down roots near his hometown of Boston, Favreau fell in love with an old country estate in quaint Chelsea, VT. It was the perfect place for this interior designer to escape from the hubbub of big city life after working with celebrity clients and more.

“It was a quintessential Vermont house in a quintessential Vermont town,” said Favreau, about spotting the house in 2012. “I hopped on a plane and bought it the next week.”

Built in 1832, the house was once owned by a man named Aaron Davis, whose family lived in it for at least 100 years. Davis’ granddaughter eventually sold the 23-acre property in the 1980s, and the new owner converted it into a bed and breakfast. (There’s still a portrait of Davis above one of the home’s five fireplaces.)

After Favreau purchased the 5-bed, 5-bath home, he sought to restore it to its original grandeur – at a frenetic pace. A contractor brought in a crew to rework everything from the wiring (it was a fire waiting to happen) to the wallpaper (there were 8 layers throughout the house). The workers even put in a massive new beam to support the house and keep it from sinking.

“The house sprung back to life and all the old Lally columns fell to the ground,” Favreau remembered. “They heard, ‘Bam-bam! Clank-clank!’ as they jacked it back to life.”

Up next on the designer’s list: keeping the look, feel and integrity of the antique touches, while updating the space to accommodate today’s trends. He tore out a downstairs wall to expand the kitchen to 700 square feet; the master suite got a modern bath with a soaking tub.

Favreau painted walls in his signature bright colors and added bold wallpaper. In a tip-of-the-hat to the history of the Green Mountain State, he lined the master bathroom with tree-print wallpaper. The dining room got a splash of flamingo pink with a print of Victorian-looking cake plates – a nod to the era in which the house was built.

“What I wanted to use for inspiration was the house and the period of the house, so nodding to the period and updating it with a contemporary aesthetic,” Favreau said. “It says today, but it also says yesterday.”

Some things are distinctly New England. A wooden footbridge connects the main property to 22 secluded acres on the other side of the White River. On warm summer nights, Favreau’s family will pull a dining room table out onto the bridge and dine al fresco.

In the winter, the adjacent land allows for snowshoeing or cross-country skiing.

There’s also an old wood barn, which Favreau envisions becoming an event space for weddings or storage. The possibilities for the next owner are limitless, he said.

“It’s a big glorious house, and my family is a big glorious family. We’ve enjoyed it,” he added. “I feel like I’ve loved my time being there and up in Vermont, but it’s time to find the next one. Maybe an oceanside property.”

The home is on the market for $695,000. Zoe Hathorn Washburn of Snyder Donegan carries the listing.


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NAHB housing market index down | South Salem Real Estate

United States Nahb Housing Market Index  1985-2017

The NAHB Housing Market Index in the United States fell to 64 in July of 2017 from a downwardly revised 66 in June, below market expectations of 67. It is the lowest reading in eight months. The index of current single-family home sales went down 2 points to 70; sales expectations over the next six months declined 2 points to 73 and buyer traffic edged down 1 point to 48. Nahb Housing Market Index in the United States averaged 49.44 from 1985 until 2017, reaching an all time high of 78 in December of 1998 and a record low of 8 in January of 2009.

United States Nahb Housing Market Index


CalendarGMTActualPreviousConsensusForecast (i)
2017-05-1502:00 PMMay70686867.2
2017-06-1502:00 PMJun67697070
2017-07-1802:00 PMJul64666766
2017-08-1502:00 PMAug6466.43
2017-09-1802:00 PMSep66.32
2017-10-1702:00 PMOct66.35

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Housing starts fall again | South Salem Homes

Construction on new houses fell in May for the third month in a row even though builders are optimistic about the economy, perhaps a sign a shortage of skilled workers is holding the industry back.

The pace of so-called housing starts declined by 5.5% to an annual rate of 1.09 million, marking the lowest level in eight months. Economists polled by MarketWatch had forecast housing starts to total 1.23 million.

Home builders are now working at a slower pace than they were one year ago. They’ve especially pared back on apartment buildings and other large multi-dwelling units, giving more emphasis to single-family homes.

Part of the recent slowdown might reflect a bit of a pause after an unusually warm winter during which builders were much busier than usual. Some economists contend a higher level of construction that occurred earlier in the year would have normally taken place in the spring.

Yet builders increasingly complain they cannot find enough good construction workers to get the job done and that could be constricting them. Consider the recent slide in building permits. They fell 4.9% in May to an annual rate of 1.17 million, the lowest level in 13 months.

Permits are also below year-ago levels,

In May, the biggest drop-off occurred in the South and Midwest. Construction rose slightly in the West and was flat in the Northeast.

For years the housing market has experienced a mini-renaissance of sorts as a steadily growing economy, rising employment and ultra-low interest rates enabled home people to buy homes.

The outlook might not be as favorable now, though. Aside from widespread labor shortages, prices for wood and other raw materials have also risen. And the Federal Reserve has embarked on a series of increases in a key U.S. interest rate that helps determine the cost of borrowing, a potential brake on future sales..


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Builder Confidence Begins Year on a High Note | South Salem Real Estate

Builder confidence in the market for newly-built single-family homes jumped seven points to a level of 70 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since July 2005.

The increase in market confidence follows the November election results, increasing hopes among home builders and other stakeholders in the residential construction industry that the incoming administration will reduce costly regulatory burdens, particularly for small businesses. Research from NAHB published earlier this year indicated that for home builders, such regulatory costs have risen by more than 29% over the last five years.

While the significant increase in builder confidence for December could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing as we head into 2017. And the rise in the HMI is consistent with recent gains for the stock market and consumer confidence. At the same time, builders remain sensitive to rising mortgage rates and continue to deal with shortages of lots and labor.

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 three HMI components posted healthy gains in December. The component gauging current sales conditions increased seven points to 76 while the index charting sales expectations in the next six months jumped nine points to 78. Meanwhile, the component measuring buyer traffic rose six points to 53, marking the first time this gauge has topped 50 since October 2005.

Builder Confidence Holds Firm in November | South Salem Real Estate

Builder Sentiment Up

Builder confidence in the market for newly-built single-family homes held steady in November at a level of 63 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

Builder sentiment has held well above 60 for the past three months, indicating that the single-family housing sector continues to show slow, gradual growth. Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. These factors will help keep housing on a steady, upward path in the months ahead.



It is worth noting that most of the November HMI responses originated before the elections. Thus, builder confidence remained unchanged as the industry awaited the results.

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 components measuring buyer traffic rose one point to 47, and the index gauging current sales conditions held steady at 69. Meanwhile, the component charting sales expectations in the next six months fell two points to 69.


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