Home Building Up, But Single Family Home Starts Fall

By Bill Esler | Posted: 08/19/2013 10:00AM

 

Home Construction WASHINGTON, DC - Home building continued its rise in July, though single family home permits fell, according to a Department of Commerce report issued August 16.

Rising interest rates could be to blame, say analysts. Housing is becoming less affordable, according to a new report from the National Association of Home Builders and Wells Fargo Bank.

69.3 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $64,400. This is down from the 73.7 percent of homes sold that were affordable to median-income earners in the first quarter, and the first time that the measure has fallen below 70 percent since late 2008.

"Housing affordability has been hovering near historic highs for the past several years, largely due to exceptionally favorable mortgage rates and low prices during the recession," observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C

- See more at: http://www.woodworkingnetwork.com/wood-market-trends/woodworking-industry-trends-press-releases/Rising-Home-Values-Impact-Affordability-in-Second-Quarter--219703131.html#sthash.QFaJV9Pm.dpuf

"Housing affordability has been hovering near historic highs for the past several years, largely due to exceptionally favorable mortgage rates and low prices during the recession," says NAHB Chairman Rick Judson, and principal at Evergreen Development Group, a home builder in Charlotte, NC.

Some 69% of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $64,400, the first time that the measure has fallen below 70% since late 2008. In the first quarter, 73.7% of homes sold were considered affordable to median-income earners.

The Commerce Dept., which tracks building permits, housing starts, and housing completions, says privately-owned housing unit building permits issued in July were at a seasonally adjusted annual rate of 943,000, 2.7% above the June rate, and 12% ahead of July 2012.  

Single-family building permits in July were at a rate of 613,000; this is 1.9% below the revised June figure of 625,000. 

Privately-owned housing starts in July were at a seasonally adjusted annual rate of 896,000. This is 5.9% above June, and 20.9% ahead of July 2012. Single-family housing starts in July were at a rate of 591,000, 2.2% below June. The July rate for units in buildings with five units or more was 290,000.

 

About the Author

Bill Esler woodworkingnetwork.com

Bill Esler

Bill Esler, Associate Publisher/ Editor in Chief, Woodworking Network Bill is responsible for editing Custom Woodworking Business and coordinating content for Wood Products , CLOSETS , WoodworkingNetwork.com, and related newsletters. Bill’s expertise includes using innovative print manufacturing techniques to grow audience engagement, digital printing, purls, QR codes; and lead-generating webcasts, custom websites, and custom digital and print content. Read Bill Esler's woodworking blogs. He can be reached at besler@woodworkingnetwork.com or follow him on Google+.

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