Demand for homes continues, however homebuilder confidence drops
According to the latest NAHB/Wells Fargo Housing Market Index (HMI) Homebuilder confidence dropped from 90 in Nov to 86 in December this is attributed to increasing lumber prices and worker shortages. The builders are less confident that they will be able to deliver the inventory in time.
Record low mortgage rate has led to an influx of new first time Home buyers which had led to the increase in home prices especially in DFW area. Growing demand has not been able to catch up with inventory which could pose an issue in future. “Demand is strong entering 2021,” Chuck Fowke, chairman of NAHB, said in a statement.
Exodus of Tech companies from Silicon Valley continues to Texas
HP Enterprises becomes the latest company to announce relocation of its headquarters to Texas. HPE was joined by Oracle which announced relocating its headquarters from Redwood City in California to Austin Texas. Another Silicon Valley Juggernaut Palantir announced that it would move to Denver. Tesla’s Elon Musk recently revealed that he has moved to Texas
Texas sees increased Jobless claim number for the month of December
Jobless claims increased in Texas to 39,800 for the month of December up by over 11,000 for the week ending Dec. 5, according to the workforce commission
Uptick in Covid-19 cases could hinder economic activity and increase eviction and vacancy rates
According to the Texas Real estate center at A&M Economic activity rebounded, The Texas Residential Construction Cycle (Coincident) Index, which measures current construction levels, ticked up due to the improvements in industry wages, employment, and construction values. The Residential Construction Leading Index rose for the fifth straight month amid increased building permits and housing starts