Fitch: ‘Solid Year’ on Tap for Home Builders in 2016

Steady order growth and strong backlogs should support healthy financials for the U.S. home building sector during the remainder of 2015 and headed into next year, said Fitch Ratings, New York.  

The agency’s Chalk Line report said potential impediments include timing and size of Fed interest rate moves and availability of an adequate labor supply.  

“Factors like a sound economy, pent-up demand, attractive affordability and a moderate, steady easing of credit standards should help support the housing upturn for at least the next six to 12 months,’ said Fitch Managing Director Robert Curran.  

Fitch said for 2015, single-family starts should expand by 11.5 percent, while multifamily volume should gain 11 percent. Fitch expects new home sales to improve by 20 percent, while existing home sales stand to rise by 7 percent.   

For 2016, Fitch projects the upcycle for housing to continue, with single-family starts improving by 14 percent and multifamily volume to reach 6 percent. Fitch also expects new and existing home sales to increase by 18 percent and 4 percent, respectively.