Month: September 2024

U.S. home prices are expected to rise modestly in 2024 despite tight supply and anticipated Federal Reserve rate cuts, with affordability improving but still strained. Prices remain over 50% higher than pre-pandemic levels, driven by homeowners holding onto low mortgage rates, and are projected to increase by a median of 5.4% next year. U.S. home prices will rise relatively modestly this year and next despite tight supply and expected U.S. Federal Reserve interest rate cuts, according to housing analysts polled by Reuters who said purchasing affordability will improve but would…

Lumber prices have risen for seven consecutive weeks, with the framing lumber composite price increasing by 0.8% as of Aug. 30, 2024, but prices remain 7.4% lower than a year ago. Volatility in lumber prices, influenced by demand, tariffs, and supply-chain issues, continues to impact the cost of new homes, contributing to declining housing affordability. The NAHB explains that it continually tracks the latest lumber prices and futures prices, and provides an overview of the behaviors within the U.S. framing lumber market. The information is sourced each week using the…

U.S. construction spending fell 0.3% in July, with a significant 1.9% drop in single-family homebuilding due to higher mortgage rates and excess inventory. Private non-residential construction also decreased by 0.4%, while public construction spending edged up slightly by 0.1%. According to Reuters, U.S. construction spending fell more than expected in July as higher mortgages and increased supply weighed on single-family homebuilding. The Commerce Department’s Census Bureau said on Tuesday that construction spending dropped 0.3% after being unchanged in June. Economists polled by Reuters had forecast construction spending dipping 0.1%. Construction…