Landscape Contractor / Design Build Maintain

DEC 2018

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FOR SALE 5,250 December 2018 13 Construction Economic Review & Forecast 2015 2015 2018 2019 2018 2019 2017 2017 2016 2016 Housing Units in Thousands Housing Units in Thousands 1,111 1,173 1,210 1,216** 1,228 * Completions This component showed loses in the lat- est tally in year-to-year (-6.5%). Single-family units were up 4.3% over the same time last year. The biggest drop was by residences with five units or more, which saw a year-to- year decrease of 29.8%. And since comple - tions generally mirror starts, look for a re- duction of completions in 2019 followed by an uptick in 2020. Housing Statistics (Cont.) Starts Single-family starts are running 5.5% bet- ter year-to-date. Total starts however were off 2.9% year-over-year. The Wells Fargo Eco - nomics Group believes the market could see "a bit more strength in apartment starts in coming months, even as single-family starts continue to drop." Trading Economics' fore - cast calls for a 1% decrease in total starts over the next 12 months, then a gain of over 5% in 2020. 968.2 1,059 1,055 ^^ 1,197 1,111* FOR SALE FOR SALE FOR SALE FOR SALE 2016 2015 2019 2018 2019 2015 2018 2017 2017 2016 Housing Units in Thousands Housing Units in Thousands New Home Sales (Single Family) Existing Home Sales 501 613 553* 665 ^ NEW HOME NEW HOME NEW HOME NEW HOME NEW HOME 5,450 5,510 5,220 * According to the Wells Fargo Economics Group, sales of new single-family houses in the first three quarters of 2018 were 3.6% higher than the same period last year. This does represent an overall slowdown of past performances but on the plus side, inventories have begun to rebound, increasing modestly over the last three months, and price gains have slowed. The group is predicting that new home sales will continue to increase 5.6% in 2019 and 5.3% in 2020, and that the multifamily sec - tor will be strong for a little longer as "there are a great deal of projects in the pipeline and a large number of proposed projects that have not yet moved forward." After six straight months of declines, total existing-home sales posted a gain of 1.4%, but that is still 5.1% down on a year-to- year basis. Lawrence Yun, chief economist for the National As - sociation of Realtors®, concludes that "Gains in the Northeast, South and West – a reversal from last month's steep decline or plateau in all regions – helped overall sales activity rise for the first time since March 2018." Total housing inventory, which includes single-family homes, townhomes, condominiums and co-ops, is at 1.85 million - a gain of 50,000 over a year ago - representing a 4.3-month supply compared to 3.9 months this time last year. *Seasonally adjusted annual rate for last reporting period ^ Wells Fargo Economics Group forecast ^^ Estimate based on Forbes' forecast **Trading Economics forecast 561 5,465 ^

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