The document summarizes recent economic indicators related to the housing market. It reports that 248,000 new jobs were added in September and unemployment fell to 5.9%. It also notes gains in home builder and residential contractor jobs over the past year, with absorption rates for apartment completions rising since 2011. However, the document also states that over half of single-family builders report tight lending standards, and 83% had lost sales due to customers' inability to qualify for mortgages.

1. Eye on the Economy
Hiring Gains a Positive for Housing
October 15, 2014
eyeonhousing.org

2. The Employment Situation 2
•248,000 net jobs were created in
September
•August gains revised from 142,000 to
180,000
•July gains revised from 212,000 to
243,000
•Unemployment fell from 6.1% to 5.9%
in August
• A quarter was due to a drop in
the size of the labor force
• Read more here

3. JOLTS 3
•In August open jobs decreased in
construction sector
• Due to an increase in hiring
during the summer
• Declined from 139,000 in July
to 115,000 in August
• Read more here

4. JOLTS 4
•Current employment is now 2.307
million
• 678,000 builders
• 1.63 million residential
specialty trade contractors
•Home builders and remodelers added
11,800 positions last month
•Residential construction has added
129,000 jobs over the last year
•323,600 jobs have been added to the
sector since low point
• Read more here

5. Apartment Absorption Rates 5
•Non-seasonally adjusted three-month
absorption for Q1 of 2014 completions
are at 62%
• Absorption rates have risen
since coming out of the
recession
• Rates have been steady since
2011
•At the start of 2014 the three-month
absorption rate for for-sale multifamily
condos was 80%
• Slightly lower than 2013’s 82%
• Read more here

6. Federal Open Market Committee Minutes 6
•The Fed will likely end its asset
purchase program
• Quantitative easing
•Federal funds rate expected to
remain low
•NAHB is forecasting the first increase
for the third quarter of 2015
• Read more here

7. Mortgage Lending Standards 7
•Low interest rates are helping
housing demand but credit remains
difficult to get
•NAHB survey indicates that 55% of
single-family builders report lending
standards as “tight” or “very tight”
•83% of respondents had lost at least
one sale in the last six months due to
customer’s inability to qualify for a
mortgage
•Average share of loss was 9.7%
• Suggests about 18,700 lost
new home sales
• Read more here

8. Other Analysis 8
•2013 regional new home
characteristics
• Price per square foot
differences
• Custom home market shares
• Foundations types
•Average real estate tax analysis
•Analysis of Energy Star-rated
appliance ownership