BuildFax March Housing Health Report Reveals U.S. Housing Slump Persists
Despite this downward trend, homebuying and hail recovery activity may encourage a slight uptick across housing indicators in the coming months
AUSTIN, Texas--(BUSINESS WIRE)--The BuildFax Housing Health Report revealed the fifth consecutive month of decreases across single-family housing authorizations, maintenance and remodel volumes on a national level in March 2019. However, heading into spring home buying season, steady interest rate activity could buoy the housing market over the next quarter. The report, which leverages U.S. property condition and history data to deliver macro- and microeconomic trends, also explored the projected impacts of hail season on the housing stock.
“The downward trend in housing activity has led to increased focus on the sector,” said BuildFax COO Jonathan Kanarek. “In March, the Fed signaled no additional rate increases in 2019, which could boost investment in the housing market. The announcement is good news for consumers heading into the spring homebuying season. We may see some relief across maintenance and remodeling indicators, as home sales typically facilitate investment into the existing housing stock.”
Despite the housing slump, some states see increased maintenance activity. This is particularly notable in hail-and hurricane-prone states, where rebuilding activity persists. The report also includes a special focus on severe hail storms recovery trends. Hail season, which typically begins in March and continues through the summer in the Midwest and Texas, results in substantial increases in property repairs. BuildFax analyzed five severe hail storms over the past three years in Minnesota, Colorado and Texas.
Our analysis shows:
- The average recovery of impacted major systems following these hail storms lasts 5.4 months.
- On a national level, roof maintenance increased 246.92 percent in the first three months following hail storm compared to the year prior.
- Roof and mechanical systems experience the most significant damage following hail events.
Repair activity following this year’s hail season could be another key driver of increased property maintenance activity during the next few months. In hail-impacted areas, homeowners risk repeated property damage, but insight into property change and risk conditions enables carriers to accurately estimate claims pay outs and resolution.