Housing Shortage? The Answer is New Construction
The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.
The good news is that builders are now starting to build more homes in lower price ranges.
Builder Confidence is Up
The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.
“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”Builders are Meeting the Needs of Today’s Purchaser
Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:
“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”
Housing Shortage? The Answer is New Construction
The WSJ article went on to say:
“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”
The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.
Housing Shortage? The Answer is New Construction
There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.
Senate Approves Fiscal Cliff and Includes Extension of the Mortgage Debt Tax Relief for Short Sales
Early this New Years morning, the Senate approved the budget to "avoid" the fiscal cliff that would have lead Americans into a financial tizzy. As long as the House votes this in, we're all good. Meaning? If you sell your home for less than what you owe, Short Sale,...
3 Government Programs That Help Distressed Homeowners
Housing Preservation Foundation The Housing Preservation Foundation has a website that provides information on the foreclosure process. Distressed homeowners can log into a 24-hour online chat session to connect with a housing counselor. The counselor can help the...
10 THINGS YOU SHOULD NEVER DO IF YOU FALL BEHIND ON A MORTGAGE PAYMENT
10 THINGS YOU SHOULD NEVER DO IF YOU FALL BEHIND ON A MORTGAGE PAYMENT If you are a homeowner having trouble paying your mortgage please know that you are not alone! There are tens of thousands of property owners across the United States who have missed their payments...
California Program Gives Money to Homeowners in Need During Short Sale Process
California Homeowners need money for moving after a short sale try “TAP”
Notre Dame BCS Ranked #1…Congratulations!
11 Straight Wins! A Little plug for the Alma Mater: With the losses of Oregon and Kansas State, mayhem has now ensued at the top of the BCS standings, and the national title picture is officially wide open. Notre Dame has the inside track to reach the national title...
Bank of America Closing More Short Sales to Fulfill Legal Woes
This just broke from USA Today... BofA admits that it is fulfilling it's obligation of Billions owed in legal penalties to the US Government and the families it damaged for its malfeasance in the collapse of the housing market. Read on... By Kris & Kim Darney...
Our Riverside Short Sale Nightmare…Press Enterprise’s Dan Bernstein Helps Out!
One of our listings in Riverside County has been under the scrutiny of the Riverside Press Enterprises Award Winning Columnist, Dan Bernstein. Our client has been the victim of State wide cuts in both area of employment (works for a local school district that made...
Fannie Mae Streamlines Short Sales Even More!
Announced today... Fannie Mae. the government agency that backs millions of home mortgages announced that it is delegating authority to it's mortgage backed servicers and banks to make quick decisions as it pertains to short sales and not having to seek Fannie Mae...
FREE California Short Sale Legal Advice
Free Online Short Sale Legal Assistance http://www.avvo.com Do you get what you pay for? That is yet to be determined. By Kris and Kim Darney
Short Sales Preferred over Foreclosure by California Homeowners
The latest results are in... California Association of Realtors states that Short Sales Reach and all time high in September 2012. number 24.3%. Real Estate Owned (Foreclosures) fell to 12.3% By Kris and Kim Darney READ THSI ARTICLE by DS News.com While distressed...
Housing Worse off Now Than in 2008…More Short Sales Needed?
We have seen a massive decline in home values resulting in the worse housing market on record. Signs from a recent report from RealtyTrac show that housing prices are stabilizing however, that many communities are struggling with high unemployment that is affecting...
We Can Accomplish Anything When We Want to…
Red Bull Stratos, MACH 1.24, Supersonic,FELIX BAUMGARTNER, 834 miles per hour
OCWEN Buys Homeward Residential Holdings and 422,000 Mortgage Loans
Ocwen Financial Corporation ($28.96 0%) will buy Homeward Residential Holdings from private equity firm WL Ross & Co. for around $750 million total. Homeward Residential Holdings is a mortgage servicing and origination business. The deal is equal to approximately...
Homeowners with 2nd’s with Bank of America May be eligible to Have Them Be Expunged!
Borrowers with second liens owned and serviced by Bank of America ($8.93 -0.03%) may qualify to get their subordinate debt extinguished entirely. The banking giant mailed 150,000 letters to pre-qualified homeowners who are eligible to have their Bank of America...
In-N-Out Heiress Lynsi Martinez Spends $17 Million on Bradbury Digs
Not sure if her parents would approve... Mz. Martinez, the ordained head of the best hamburger int he Free World, In-N-Out is blowing through her wad of cash buying lavish homes throughout the LA Basin...including 2 mansions in neighboring Glendora (my home town and...
California Home Prices Up! More Short Sales
Declining inventory helps explain why the statewide median price of an existing, single-family detached home rose to $343,820 in August, up 3 percent from July and up 15.5 percent from August 2011, according to C.A.R.
Home Prices Rise in August 16% Year over Year…More Short Sales
Existing home sales and home prices both improved in August, with sales rising 7.8 percent on a seasonally adjusted annual basis. According to information released this morning by the National Association of Realtors® (NAR) August was the sixth consecutive month for...
Fewer Mortgage Defaults For the 8th Straight Month
First mortgages defaulted at a 1.4% rate in August, down from 1.92% one year ago, according to S&P and Experian. Fewer borrowers defaulted on their first mortgage than for the eighth straight month, according to consumer credit data from Standard &...