Unaffordable Real Estate Pushes US Housing Starts Down 1.4% and Building Permits Down 1.6% in December

US housing starts declined 1.4% month-over-month in December to a seasonally adjusted annual rate of 1.425 million (consensus 1.355 million). Total building permits fell 1.6% month-over-month to a seasonally adjusted annual rate of 1.330 million (consensus 1.370 million) and lowest level since May 2020. Affordability is the major issue; mortgage demand hovers near its lowest level since 1997. That said there was a positive element whereby new single-family starts increased by 11.3% month-over-month. Permits came as no surprise after recent … Continue reading “Unaffordable Real Estate Pushes US Housing Starts Down 1.4% and Building Permits Down 1.6% in December”

High Mortgage Rates Saw Cancellations Jump 68% for Homebuilder KB Homes in Q4

Homebuilder KB Homes reported worse than expected fiscal fourth quarter 2022 earnings after the market Wednesday. KBH missed EPS by $0.38 and also missed on revenues. Results were “sharply lower demand stemming from higher mortgage interest rates, inflation and other macroeconomic and geopolitical concerns.” Net orders decreased 80% yr/yr to 692. The company guided FY23 revenue inline. KBH shares were down 2.1% after hours. It has been a difficult time for home buyers and home builders alike with sliding home … Continue reading “High Mortgage Rates Saw Cancellations Jump 68% for Homebuilder KB Homes in Q4”

Homebuilder KB Homes Earnings Outlook in a Soft Property Market

Homebuilder KB Homes reports fiscal fourth quarter 2022 earnings after the market Wednesday. It has been a difficult time for home buyers and home builders alike with sliding home sales and affordability squeezed with high interest rates and inflation. Affordability remains the major issue; mortgage demand remains near its lowest level since 1997. Redfin reported pending home sales were down 32% year over year for the four-week period ending January 1. Real estate is experiencing record-low new listings. Analysts are … Continue reading “Homebuilder KB Homes Earnings Outlook in a Soft Property Market”

US Housing Starts Fell Another 4.2% in October as Affordability Crumbles, Building Permits Fall 2.4%

US housing starts declined 4.2% month-over-month in October to a seasonally adjusted annual rate of 1.425 million (consensus 1.420 million) from an upwardly revised 1.488 million (from 1.439 million) in September. Affordability is the major issue; mortgage demand remains near its lowest level since 1997. Building permits dropped 2.4% month-over-month to a seasonally adjusted annual rate of 1.526 million (consensus 1.518 million) from an unrevised 1.564 million). The move suggests disruption and demographic influences. United States Housing Starts October 2022 … Continue reading “US Housing Starts Fell Another 4.2% in October as Affordability Crumbles, Building Permits Fall 2.4%”