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.
As Unemployment Increases…Opportunity Increases For Self Employment
I love Zig Ziglar, this was part of a much larger story....but I found it so inspiring. Unemployment is high, and increasing daily. Unemployment benefits don't seem to be "a benefit" for many these days. Read and enjoy! America was built upon the pursuit of personal...
The "Super Prime" FICO Scorers More Likely to "Strategic Default"? …LOL
This article hit over the weekend in the Washington Post... It's enlightening...and some may even find it shocking! Who are the folks more likely to "strategically default"? The "Super Prime" FICO scorers! Yes, the snooty folks that look down on us with the less than...
Mortgage Delinquencies On the Rise…First Time Mortgage Defaults UP 10%
Baywatch Co-creator Gregory J. Bonnan's Malibu Compound For Sale
Baywatch co-creator Gregory J. Bonnan is selling his two-home Malibu compound, but each house is being listed separately out of consideration for those who can only afford one home at a time. The first has four bedrooms and four-and-a-half bathrooms and has a...
Treasury Launches New Mortgage Help for Unemployed in July
Starting July 1, homeowners can apply for assistance from the Home Affordable Unemployment Program (HAUP). HAUP provides homeowners a forbearance of monthly mortgage payments, either reducing them or suspending them for at least three months. Servicers can extend the...
Fed's Take Over Arrowhead Credit Union After Reporting Inaccurate Gains
Arrowhead Credit Union reported faulty financial numbers in March, months before last week's takeover by federal regulators, the government said Wednesday. "Arrowhead Credit Union posted inaccurate financial data in its March 2010 Financial Performance Report,...
Former Mortgage Exec Plead Not Guilty To Steal Bail Out Money!
The former head of a mortgage lending company accused of scheming to steal more than $500 million from the government's financial bailout fund has pleaded not guilty in the case. Lee Bentley Farkas entered the not guilty plea Friday in Alexandria, Va., to charges...
To Move Forward….Stop Looking Over Your Shoulder!
Many of us live our lives stuck somewhere "back when," fixated on days--or people, or circumstances--gone by. In todays economy, the "good old days" can be hard to let go of...but living in the past, it is absolutely holding you back from living your very best life...
Housing's Powerhouse Lobbyists
Senate and House Passed Home Buyers Tax Credit; Off to The President
The US Senate has agreed to extend the Home Buyers Tax Incentive to September 30, 2010. It swiftly passed through the House earlier this week. The first attempt to extend the date from June 30 to September 30 failed because of the political "Pork" that was attached to...
Home Tax Credit Still Has A Chance!
Today is the closing deadline for home buyers to get their $8000 tax credit if they're first timers and $6500 if they're repeat buyers. This is if they signed contracts by April 30th. Previous efforts to extend the deadline failed, but a new move is afoot that may...
Should United States use Canada as an economic role model…Housing Dream or Nightmare?
Bank Of America Doing "Everything Possible" To Approve Short Sales and Avoid Foreclosure
More than 232,000 properties in some stage of foreclosure were sold during Q110, taking up 31% of all residential sales, according to RealtyTrac, an online foreclosure marketplace. But that total is dropping. RealtyTrac included properties either in default, scheduled...
Breaking News! In a 409-5 Vote House Passes Home Buyer Tax Credit Extension; Senate Tomorrow?
In a 409-5 vote, House lawmakers have passed a standalone bill that would extend for three months Wednesday's deadline for closing on a home purchase in order to claim the federal homebuyer tax credit. The Senate could vote on the bill, HR 5623, as soon as tomorrow,...
Sellers Doing Rent Back From Buyer…Is There A Problem With That?
Here we are, the Inland Empire....devastated by home values that have decreased up to 60%, unemployment reaching an epic 17 to 20%...a community at large doing all they can to help assist those in need. Can we get real...just for a little while? As realtor's...
Strategic Defaults Up 53% From One Year Ago
Are We In Early Stages Of The Third Depression? Housing Market, Unemployment,Government Deficit
Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass...
Napa Wineries Part of $269 million Sale-Lease Deal…We're Doing This for Homeowners
If you've been to NAPA...Northern end, you have seen this beautiful villa elevating from the surrounding Oaks... Iconic Napa wineries part of $269 million sale-lease deal THE PRESS DEMOCRAT Sterling Vineyards near Calistoga is part of Diageo alcohol conglomerate's...