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.
Happy Birthday to My Lovely Wife and Partner…
OH, give us pleasure in the flowers today; And give us not to think so far away As the uncertain harvest; keep us here All simply in the springing of the year. Oh, give us pleasure in the orchard white, Like nothing else by day, like ghosts by night; And make us happy...
IRS Extends Federal Tax Due Date to April 18…In Honor of Emancipation Day
April 15 is the traditional due date for federal income taxes. It’s a deadline so ingrained in the American psyche that the April 15 calendar date is often called, simply, “Tax Day”. In 2011, however, federal taxes aren’t due April 15. They’re due April 18. It’s...
Southern California Home Sales Down 10% in February…More Short Sales?
Aw Snap! Just when there was so much good info coming from Obama. So Cal is getting slapped with the harsh reality that home buyer consumers are educating themselves to the fact that with increased inventory...more choices...the next in line is banks lowering their...
Christina Aguilera Selling Beverly Hills Estate…$13.5Million
Christina Aguilera Puts Beverly Hills Home on Market for $13.5 Million Source: IMDb Christina Aguilera has been a trending name for headlines in the first few months of 2011, but not for the Grammy-winning voice that made her a star. A lyrical twist of the...
Cary Grant's former Palm Springs Abode…$2.995 Million
Cary Grant, born Archibald Alexander Leach, set the standard for Hollywood’s charismatically debonair actors with roles in classic films throughout the 1940s, 50s, and 60s. Though most of his performances were timeless, with a few nabbing Grant Academy Award and...
California Association Of Realtors Help Homeowners With Short Sales!
As a Realtor, I'm very happy to see California Association Of Realtors taking a stand on the much needed topic of processing Short Sales and dealing with unresponsive lenders. There are so many reasons that we all must stand up and hold these lenders accountable. A...
MARS Act Disclaimer
This entire page is a disclaimer required on behalf of the Federal Trade Commission who, to date has not implicated 1 CEO, President or VP from any major bank for their actions in creating and escalating the failure of the mortgage banking and housing industry. The...
HAMP Massive Flop According to Treasury…Even More Short Sales Coming
Breaking news from the Treasury.... Obama's HAMP is a Flop! Over 800.000 homeowners "booted" from the Home Affordable Modification Program. Where do these homeowners turn? Short sales or foreclosures...that's the option. Here's the article from Arthur Delaney via...
Cash is King in California…Cash Buyers for February Represent almost 31% of Home Sales
Is this a sign of the times? Are Short Sales on the rise as we predicted? We have witnessed a high influx of cash offers in our own business and solicitations from cash investors over the past year...why? The power of cash in a market with...
This Could Be the End of Banks as We Know It…We Called This
Just weeks after a New York Judge called the foreclosure actions of MERS "illegal"...it's headlines today that the mortgage industry including banks and loan servicers of mortgages are gonna be slammed with lawsuits from every attorney willing to represent a U.S....
NAR Release: Homeowners in Default…Stay in Home and Average of 19 Months without Payments…Still More Short Sales Coming
What is a short sale? This release from NAR just today... Banks and mortgage servicers are taking more time to foreclose on defaulting home owners--a process that can take up to 2 years now, USA Today reports. A backlog in foreclosures has occurred within a number of...
Case-Shiller Home Prices Drop Across US another 3.9%…More Short Sales
Data through December 2010, released this morning byStandard & Poor’s show that the S&P/Case-Shiller national home price index declined by 3.9 percent quarter-over-quarter during the last three months of 2010. The closely watched gauge is down 4.1 percent...
Celebrating Presidents Day…Current and Former Presidents Homes…Any Short Sales?
Today being Presidents Day, we felt it appropriate to share Current and Former Presidents homes...Enjoy and God Bless America! Barack Obama’s Chicago House Real estate has also been a thorn in democratic presidential nominee Barack Obama’s side, but for different...
Frankie Muniz "Malcolm in the Middle" Star Selling Hollywood Hills Home
After reaching stardom in the comedic series, “Malcolm in the Middle (2000-2006),” child actor,Frankie Muniz, decided to take a break from acting and give race-car driving a try. Now it looks like Mr. Muniz is ready to take a break from Los Angeles real estate....
New York Judge Rules "MERS" is "Illegal" in it's Practices…More Short Sales
We've been waiting for this ruling since we learned about the practices of MERS and it's legality. Mortgage Electronic Registration System (MERS) was developed by the Mortgage Industry to act as an electronic "pipeline" that transfers "paper work" from one financial...
Home Prices Drop 12% in 2010…Twice the Amount that NAR Reports…More Short Sales
A report issued today by Corelogic solidifies our preachings...home prices dropped more than twice what National Association of Realtors stated in this report released earlier this week. I respect that fact that NAR is providing much needed support in Washington DC,...
2011 Grammy Nominees Homes
The season of award shows is upon us and snuggled in between the Golden Globes and Academy Awards is the biggest award ceremony for the music industry – the Grammy Awards. This Sunday (Feb. 13), the 53rd Grammy Awards will be held at the Staples Center in Los Angeles....
Judy Garlands Former Los Angeles Home For Sale $5.5 Million
Somewhere over the rainbow, iconic actress and singer, Judy Garland, once spent her time away from the Hollywood limelight, in this cozy 2.5-acre estate. Built in 1938, the same year she was cast in “The Wizard of Oz,” renowned California architect, Wallace Neff, was...