{"id":208884,"date":"2021-03-23T16:39:00","date_gmt":"2021-03-23T13:39:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/americans-are-forming-households-at-a-much-faster-pace-than-builders-are-constructing-homes\/"},"modified":"2021-03-23T16:39:00","modified_gmt":"2021-03-23T13:39:00","slug":"americans-are-forming-households-at-a-much-faster-pace-than-builders-are-constructing-homes","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/americans-are-forming-households-at-a-much-faster-pace-than-builders-are-constructing-homes\/","title":{"rendered":"#\n  Americans are forming households at a much faster pace than builders are constructing homes"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4101689c3e5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4101689c3e5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/americans-are-forming-households-at-a-much-faster-pace-than-builders-are-constructing-homes\/#New_home_sales_plummet_amid_bad_weather_but_analysts_remain_upbeat_on_construction_activity\" >New home sales plummet amid bad weather, but analysts remain upbeat on construction activity<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/americans-are-forming-households-at-a-much-faster-pace-than-builders-are-constructing-homes\/#Jacob_Passy\" >Jacob Passy<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Americans are forming households at a much faster pace than builders are constructing homes<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"New_home_sales_plummet_amid_bad_weather_but_analysts_remain_upbeat_on_construction_activity\"><\/span>\n  New home sales plummet amid bad weather, but analysts remain upbeat on construction activity<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000208187\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <strong>The numbers:<\/strong>\u00a0Sales of newly built homes dropped significantly, largely as a result of last month\u2019s winter weather. But analysts expect home construction activity to remain strong in the months to come despite rising mortgage rates.<\/p>\n<p> New home sales occurred at a seasonally-adjusted annual rate of 775,000 in February, the U.S. Census Bureau\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.census.gov\/construction\/nrs\/pdf\/newressales.pdf\" class=\"icon none\">reported Wednesday<\/a>. That was 18.2% down from the upwardly-revised pace of 948,000 in January.<\/p>\n<div class=\"paywall\">\n       Analysts polled by MarketWatch had projected new-home sales to occur at a seasonally-adjusted annual rate of 879,000.<\/p>\n<p>Compared to 2020, February\u2019s figure was still up roughly 8.2% year-over-year. Because of the small sample size used in producing the report, it is prone to large revisions from month to month.<\/p>\n<p><strong>What h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened:<\/strong>\u00a0New-home sales fell on a monthly basis across all parts of the country, led by a 37.5% decline in the Midwest. Compared to 2020, sales were up in the Midwest and South, but down in the West and Northeast.<\/p>\n<p>Inventory rose to a 4.8-month supply. A six-month supply of homes is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly considered indicative of a balanced market. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n price of new homes for sale was $349,400, down roughly 1% from January.<\/p>\n<p><strong>The big picture:\u00a0<\/strong>As with other economic data, the pace of new home sales was certainly affected by the extreme weather events that affected many parts of the country last month, including Texas. These effects were certainly temporary, but rising mortgage rates could create a broader, longer-lasting headwind for the housing market.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span><br \/>\n        Analysts expect building activity to persist even as higher interest rates cause some buyers to become skittish about their ability to afford to buy a home.<br \/>\n        <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span><\/p><\/div>\n<\/p><\/div>\n<p>       Nevertheless, analysts expect building activity to persist even as higher interest rates cause some buyers to become skittish about their ability to afford to buy a home. <\/p>\n<p> \u201cWhile housing demand is likely to level off on the back of rising rates, we believe there is further upside for building activity,\u201d Jeffries chief economist Aneta Markowska and money-market economic Thomas Simons wrote in a research note.<\/p>\n<p>As the Jeffries analysts argue, household formations have occurred at nearly double the pace of housing starts for the last six months. \u201cThe excess demand has been met out of inventories, which will now have to be replenished,\u201d the Jeffries analysts wrote. \u201cThis creates incremental further upside for housing starts and for residential investment.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>What they\u2019re saying:<\/strong> \u201cMortgage rates remain low but are gradually rising. For now, the constraint for home sales relates mostly to tight inventories, which should be supportive of home building activity,\u201d Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note.<\/p>\n<p>\u201cNew homes remain attractive for many buyers, especially those ready to trade up to larger floor plans, designated home offices, and newer <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and appliances,\u201d said George Ratiu, senior economist at Realtor.com. \u201cWith the number of willing buyers still running ahead of available homes for sale, the spring season is expected to bring additional energy to the new home market.\u201d<\/p>\n<p><strong>Market reaction:<\/strong> The Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.36%<\/bg-quote><br \/>\n       and S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.28%<\/bg-quote><br \/>\n       were both roughly flat following the report\u2019s release, while homebuilder stocks \u2014 including D.R. Horton<br \/>\n        DHI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202032328\/composite\" class=\"negative\">-0.04%<\/bg-quote><span>,<\/span><br \/>\n      \u00a0\u00a0Lennar Corp.<br \/>\n        LEN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202536373\/composite\" class=\"positive\">+0.01%<\/bg-quote><br \/>\n      \u00a0\u00a0and PulteGroup\u00a0<br \/>\n        PHM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201694804\/composite\" class=\"positive\">+0.06%<\/bg-quote><br \/>\n       \u2014 fell in morning trading.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jacob Passy\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jacob_Passy\"><\/span>Jacob Passy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D32D3BE1E79D%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Americans are forming households at a much faster pace than builders are constructing homes &#8221; New home sales plummet amid bad weather, but analysts remain upbeat on construction activity The numbers:\u00a0Sales of newly built homes dropped significantly, largely as a result of last month\u2019s winter weather. But analysts expect home construction activity to remain&#8230;<\/p>\n","protected":false},"author":1,"featured_media":208885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-208884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/208884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=208884"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/208884\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/208885"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=208884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=208884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=208884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}