The housing market isn't affordable, but things could soon improve

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Housing is still unaffordable - but one corner of the market says things may soon get better

reported that a mere 1% of homes have changed hands in 2023 — the lowest proportion in at least a decade.

Look at real estate giant D.R. Horton. In the three months up to June, the firm's purchase contracts climbed 37% to 22,879 homes compared to the same quarter last year. That squarely beat Wall Street estimates. Plus, it reported that its cancellation rate dropped from 24% to 18% year-over-year. The Commerce Department Wednesday said home building starts in June ticked higher to 1.44 million homes, at a seasonally adjusted, annual rate. That pulled the second quarter's average of 1.45 million homes above the first-quarter level of 1.39 million — good for the first quarterly increase since early 2022.

That's the first quarterly gain in over two years. Separate building permits data also point to further growth in residential investment to start the third quarter.hit its highest mark in 13 months, with an increasing number of buyers feeling upbeat about new construction.

 

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