🏡📈Market Minute: Housing Shortage Update

🏡📊 Housing Update! 📈 The latest numbers on housing supply and demand reveal a growing shortage, fueling the rise in home prices. Here's the breakdown:

🔍 Housing Starts & Permits Overview:

Supply struggles to keep up with demand.
October saw a 2% increase in Housing Starts, but a negative revision keeps it essentially flat.
Single-Family Starts remained crucial, staying flat at a 970k unit annualized pace, up nearly 13% YoY.
Building Permits, indicating future supply, rose 1% to a 1.9M unit annualized pace but are down over 4% YoY.
Multi-Family projects completed, impacting supply and lowering rental prices.
Projects in permitting process near 3-year lows due to aggressive Fed rate hikes.
🏗️ Completions & Future Supply:

Completions fell almost 5% last month, with Single-Family down 1%.
New supply on pace to hit the market this year at 1.41M, well below the 2M demand.
Future supply with Permits just under 1.5M, lagging behind formations.
More demand than supply supports home values, especially into the upcoming spring homebuyer season.
🏠 NAHB Housing Market Index:

November's index fell 7 points to 33, remaining in contraction.
Internal components hit their lowest levels since the end of last year.
Despite weakening, the pattern mirrors November 2022, preceding a market slowdown.
NAHB anticipates improving conditions in the coming months, signaling a potential turning point.
📈🏡 The bottom line: Economic shifts, declining rates, and builder confidence improvements expected. Now could be a strategic time in the housing market! 🌟

Credit to @MBSHighway for this great info.

Joshua Sun
NMLS# 349638
☎️ 657-577-9124

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