February 2012 U.S. Construction

Click image for larger view

Click image for larger view

Overall construction spending in the United States decreased by 0.1 percent during January, to a seasonally adjusted and annualized rate (SAAR) of $827.0 billion. Only the private residential category posted an increase relative to December ($4.4 billion and 1.8 percent).
 

Click image for larger view

Total housing starts dropped by 1.1 percent in February, to 698,000 units (SAAR). Single-family starts fell to 457,000 units (by -50,000 units or 9.9 percent); multi-family starts, by contrast, rose to 241,000 units (by +42,000 units or 21.1 percent), over 85 percent above year-earlier levels.
 

Click image for larger view

Click image for larger view

Click image for larger view

New-home sales retreated in February, by 1.6 percent, to 313,000 (SAAR). The median price of new homes sold jumped by 8.3 percent, to $233,700. Although single-unit starts fell more rapidly than sales (respectively, -50,000 and -5,000), the three-month average starts-to-sales ratio was nearly steady at 1.5 in February.
 

Click image for larger view

Single-unit completions rose by 8.2 percent; the inventory of new single-family homes was unchanged in absolute terms, but months of inventory increased by 0.1 month. Inventory stood at 150,000 units and 5.8 months. As has repeatedly been the case since March 2011, the number of new homes for sale was its lowest since such records began in January 1963.
 

Click image for larger view

Existing home sales fared slightly better than their new-home counterparts in February, falling by “only” 40,000 units (SAAR) or 0.9 percent. The share of total sales comprised of new homes was unchanged at 6.4 percent.
 

Click image for larger view

Although the median price of existing homes sold rose by $2,500 (1.6 percent), to $157,100, housing affordability jumped to a new all-time high. This followed on the heels of decreases in the not seasonally adjusted 10- and 20-city S&P/Case-Shiller home price indices during January (both -0.8 percent).

“Despite some positive economic signs, home prices continued to drop. The 10- and 20- City Composites and eight cities – Atlanta, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa – made new lows,” said David Blitzer, chair of the Index Committee at S&P Indices. “Detroit and Phoenix, two cities that have suffered massive price declines, plus Denver, saw increasing prices versus January 2011. The 10-City Composite was down 3.9 percent and the 20-City was down 3.8 percent compared to January 2011….”
 

Click image for larger view

“Atlanta continues to stand out in terms of recent relative weakness. It was down 2.1 percent over the month, and has fallen by a cumulative 19.7 percent over the last six months. It also posted the worst annual return, down 14.8 percent. Seven of the cities were down by 1.0 percent or more over the month. With the new lows, both Composites are now 34.4 percent off their relative 2006 peaks.”
 

Click image for larger view