Jun 17 2020
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HBRA of Central CT Continues Fight Against COVID-19

By Industry News

Early on in the COVID-19 pandemic, members of the Home Builders & Remodelers Association of Central Connecticut donated more than 60 rolls of DuPont’s Tyvek HomeWrap to area insulation manufacturer Thermaxx LLC. The donation was enough to make 1,300 individual protective gowns.

Thermaxx had converted its production facility in West Haven, Conn., to make disposable gowns for health care professionals and first responders, and the groups were able to donate the gowns to multiple area hospitals, firefighters and ambulance squads.

But HBRA of Central Connecticut Chief Executive Officer Eric Person and Vice President of Operations Sheila Leach wanted to do more.

Person and Leach reached out to Lowe’s Home Improvement, which sells the Tyvek materials used to make the gowns, after connecting at NAHB Leadership Meetings. “The donation we were able to facilitate would not have been possible without those connections we made through NAHB,” Person said.

Lowe’s corporate representatives then reached out to DuPont, who as part of its #TyvekTogether program, launched the sale of a new Tyvek® 1222A material that is better designed for protective apparel than its HomeWrap. It also partnered with Lowe’s to donate rolls of the material to help meet the needs for personal protective equipment (PPE) in the United States, including 400 rolls that were donated to Thermaxx. One of the recipients of the new gowns was the South Fire District of Middletown, Conn.

“In response to the COVID-19 pandemic, companies coming together to support the production of much-needed PPE are making a difference for frontline responders,” DuPont said in a website post regarding the donation.

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Jun 17 2020
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FHFA and FHA Extend Foreclosure and Eviction Moratoriums Through August

By Industry News

The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac will extend their moratorium on single-family foreclosures and evictions until at least Aug. 31, 2020.  The foreclosure and eviction moratorium applies to Fannie Mae and Freddie Mac-backed single-family mortgages only. The current moratorium was set to expire on June 30.

Separately, HUD announced that the Federal Housing Administration (FHA) is also extending its foreclosure and eviction moratorium an additional two months through Aug. 31, 2020, for home owners with FHA-insured single-family mortgages.

FHA’s single-family foreclosure and eviction moratorium extension applies to home owners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and continues to direct mortgage servicers to:

  • Halt all new foreclosure actions and suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties; and
  • Cease all evictions of persons from FHA-insured single-family properties, excluding actions to evict occupants of legally vacant or abandoned properties.

Both FHFA and FHA said these moves were made to protect borrowers and renters who are at risk of losing their home due to the COVID-19 pandemic.

Jun 17 2020
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New Housing Numbers Flash Signs of Continued Growth

By Industry News

In a sign that the housing market continues to show forward momentum, single-family permits posted an 11.9 percent gain in May, while total housing starts increased 4.3 percent to a seasonally adjusted annual rate of 974,000 units, according to a report from the U.S. Housing and Urban Development and Commerce Department.

The May reading of 974,000 starts is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts increased 0.1 percent to a 675,000 seasonally adjusted annual rate, after an upward revision for the April estimate. The multifamily sector, which includes apartment buildings and condos, increased 15.0 percent to a 299,000 pace.

“We are seeing many positive economic indicators that point to a recovery, including low interest rates, rising demand and an increase in mortgage applications,” said NAHB Chairman Dean Mon. “Single-family and multifamily housing production are on an upward path while overall permits, which are a harbinger of future building activity, posted a double-digit gain.”

“The May housing report is consistent with the positive results of the NAHB/Wells Fargo builder sentiment index, and we expect this momentum to continue as economic activity recovers,” said NAHB Chief Economist Robert Dietz. “In another promising sign, single-family permits are up almost 2 percent on a year-to-date basis and builders are bringing back thousands of workers laid off in March and April to meet renewed demand.”

On a regional and year-to-date basis (January through May of 2020 compared to that same timeframe a year ago), combined single-family and multifamily starts are 1.7 percent higher in the Midwest, 4.7 percent higher in the West, 6.7 percent lower in the Northeast and 0.2 percent lower in the South.

Overall permits increased 14.4 percent to a 1.22 million unit annualized rate in May. Single-family permits increased 11.9 percent to a 745,000 unit rate. Multifamily permits increased 18.8 percent to a 475,000 pace.

Looking at regional permit data on a year-to-date basis, permits are 14.8 percent lower in the Northeast, 6.2 percent lower in the Midwest, 2.7 percent lower in the West and 0.8 percent higher in the South.

Jun 17 2020
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Gain for Single-Family Permits Points to Building Growth

By Housing

Single-family housing starts were flat in May, albeit off an upwardly revised estimate for construction in April. Single-family starts in May were estimated by Census/HUD at a 675,000 seasonally adjusted annual rate, after an revised estimate of 674,000 for April.

However, the turning point for the market was found in the permits data. Consistent with recent gains in the NAHB/Wells Fargo Housing Market Index (HMI), single-family permits increased almost 12% in May. Total permits for single-family homes issued in 2020 on a year-to-date basis are 1.8% than the first five months of 2019. An increase in the pace of permits signals gains for single-family starts ahead.

Since the peak rate in February, the pace of single-family construction has declined 35% as of May.

As an indication of how strong the start was for single-family construction in 2020, single-family starts on a year-to-date basis are down just 2.4% relative to the comparable 2019 totals. Thus far, single-family starts are down on a year-to-date basis 23% in the Northeast, 3% in the Midwest, and 3% in the South, but are 4% higher in the West (led by the fast growing Mountain states).

 

Construction starts for the multifamily sector, which includes apartment buildings and condos, increased 15% to a 299,000 pace in May. This reflects a 52% decline for multifamily construction relative to the strong January pace at the start of 2020. NAHB’s forecast calls for multifamily construction to decline more than single-family construction as a result of the 2020 downturn.

In terms of economic impact, there were 503,000 single-family homes under various stages of construction in May. This was down more than 2% from April and almost 4% lower than a year ago, as the impact of recent months’ single-family starts declines take hold. It is the lowest total since early 2018.

There were 669,000 multifamily units under construction in May, a slight decline from April (675,000). But this total is 10% higher than May of 2019.

Jun 16 2020
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AD&C Loan Volume Expands During a Tough Quarter

By Housing

Reversing a quarterly decline during the final quarter of 2019, the volume of residential construction lending posted a slight gain during the first quarter of 2020. This was prompted by the strong start for home construction in the early months of the year. The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased 2% after a 0.7% decline at the end of 2019. The volume of loans increased by $1.6 billion during a quarter that featured the beginning of the virus-induced 2020 recession. This expansion placed the total stock of construction loans at $81.4 billion.

On a year-over-year basis, the stock of residential construction loans is up just 1.5%, although this marks an improvement after the housing soft patch of 2018/2019. Since the first quarter of 2013, the stock of outstanding home building construction loans has grown by 100%, an increase of almost $40.7 billion.

It is worth noting the FDIC data represent only the stock of loans, not changes in the underlying flows, so it is an imperfect data source.

Lending remains much reduced from years past. The current amount of existing residential AD&C loans now stands 60% lower than the peak level of residential construction lending of $204 billion reached during the first quarter of 2008.

The FDIC data reveal that the total decline from peak lending for home building construction loans continues to exceed that of other AD&C loans (nonresidential, land development, and multifamily). Such forms of AD&C lending are off a smaller 34% from peak lending. For the first quarter, these loans expanded by 2.4%.

As builder and developer lending has slowed, a gap remains between the current volume of home building demand and available credit. This lending gap is being made up with other sources of capital, including equity, investments from non-FDIC insured institutions and lending from other private sources, which may in some cases offer less favorable terms for home builders than traditional AD&C loans.

Additionally, NAHB survey data indicate that builders cite concerns about construction loans, with reported lending conditions at the tightest since 2011.  However, housing market sentiment is solid.  Data for the second quarter will reveal the degree to which lending was made available to builders to meet this potential demand.

Jun 15 2020
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NAHB to Host ‘Remodeling Economic Outlook: Housing Changes After COVID-19’

By Industry News

NAHB Chief Economist Robert Dietz will join host Vince Butler, CAPS, GMB, GMR, and other top remodeling analysts from Harvard University and John Burns Real Estate Consulting (JBREC) for a comprehensive review and economic outlook of the home-improvement industry. Todd Tomalak and Abbe Will — contributors to leading industry research forecasts, including the Harvard Leading Indicator of Remodeling Activity and the NKBA/JBREC Kitchen and Bath Market Index — complete the speaker lineup.

Participants will hear essential remodeling insights to help them prepare as the economy reopens following COVID-19.

The webinar will:

  • Highlight the shift in remodeling trends due to the COVID-19 pandemic.
  • Forecast remodeling market challenges and changes for the remainder of 2020.
  • Identify product demand and design preferences for reopening and work-at-home environments.

The following designations qualify for 1.0 hours of NAHB continuing education credits — CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP and MIRM.

This webinar is open and free to everyone, Thursday, June 25, 2-4 pm ET. Register now and don’t miss this opportunity.