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.
Now You Can Short Sale Your Home and Buy Another Home…At The Same Time
Breaking News*********If you are a Real Estate Agent: Kim and I will be talking about this program this week on our coaching calls with Harris Real Estate University Sign up and Log in to the Thursday Call 10:00AM PST To our clients...you'll be receiving an email...
Loan Mod Experts…Whatever you do…Don't Piss Off Your Client…Or Else!
This story only gets better... It appears that ywo Loan Modification Scam victims took their anger out on the perpertraitors...now they are facing Life in Prison! It appears that these two Sothern California homeowners who had hired "Loan Mod Experts" felt that since...
Third Quarter Results in Emergance of New Cities in Foreclosure Troubles
Today's article in The Truth About Mortgage.com it was reported that new, previously unaffected metro cities around the US are being bitten by the Foreclosure bug: Chico, CA 98% increase over last year Reno-Sparks, NV up 80% Prescott, AZ up 77% Jacksonville, FL &...
New Home Buyer Credit Extended…Senators Agree
This is great news and it's with bi-partisan agreement. It appears that the first time home buyer credit will be extended...but no specifics. Talks have it so that the plan may be: in place through the end of 2010. May be a "step-down" plan that will reduce the...
No Obama! Don't Sign That Treaty
On October 14, Lord Christopher Monckton, a noted climate change skeptic, gave a presentation in St. Paul, MN. In this 4-minute excerpt from his speech, he issues a dire warning to all Americans regarding the United Nations Climate Change Treaty, scheduled to be...
Wells Fargo Customers Win 1 Year of Free Mortgage Payments
If you're a current Wells Fargo Mortgage customer you can win up to $60,000 in mortgage payments for 1 year. All you have to do is: if you sign up for Wells Fargo Online and simply click through to your mortgage account if you sign on and view your mortgage account...
Bank of America and Citi on the Brink of Failing?
On the heals of Citi's announcement of $1Billion + losses this quarter...Bank Of America announces $2.24 Billion in losses. I think we all know the truth...these banks are insolvent. CEO's just can't admit it when they have failed. It would be a punishing blow to the...
Foreclosure Activity Sets New Record in Third Quarter
According to a recent report release by RealtyTrac, in the last quarter (July, August, September 2009) the US has experienced the highest foreclosure activity since RealtyTrac began reporting on the foreclosure market. Activity rose 5% over last quarter or 937,840...
Making Homes Affordable Short Sale Program …Harris Real Estate University
Tim Harris is always on top Short Sale Breaking News How does the proposed MHA Short Sale and Deed In Lieu program guidelines effect my Short Sale business? Recently, on another blog there was an article published that was misleading and (frankly) a little deceptive...
Bank of America/Countrywide Streamlining Their Short Sale Process
Say it ain't so... Bank of America/Countrywide are coordinating with an outside company REOTRANS to manage and streamline the Short Sale process. After months and months of crys and moans over the BofA short sale...we're getting news that there has been a grouping of...
California Associaiton of Realtors (CAR) is a Liar! There…I Said It!
"California's rollercoaster ride to end?" Let me preface...This is the title to the article just released by INMAN News...I'm not bashing Inman...it's just reporting a story. ******************** I am not a member of CAR for this very reason. CAR has been touting this...
California 21 Day Turn Around For Short Sales…Unfortunately NO
After a lengthy conversation with Senator Calderon's Representative's, California Senate Bill 306 was explained to be of use for Escrow and Escrow Officers to be able to have direct access to lenders to obtain timely Short Sale Pay Offs. Unfortunately, it is a...
Banks Promoting Short Sales As Alternative To Foreclosure
Finally, we are hearing the lenders/banks tell their clients there are alternatives to foreclosure! At a recent conference for real estate agents handling foreclosures the buzz word was Short Sales..... According to high ranking officials at Fanni Mae, Freddi Mac and...
Loan Modification Scam…California State Bar Releases Names of Attorneys Under Investigation
Wish I could say I'm Shocked....! Imagine that, more people preying on homeowners desperation to keep a roof over their families head. This time it's attorney's that are taking all they can from these unfortunate people. Hot off the press: The state bar of...
New Housing Crash Will Send Shadow Inventory Above 7 Million…Analysts Say
In a recent article in the Wall Street Journal, Analysts from Amherst Securities projected a come back of over 7 million new foreclosures. Which is 5.5 x's the amount as in 2005. The causes range from failed Loan Modifications, Legal wrangling, re-defaults of loan...
Governor Signs Important Legislation California SB 306
The California Senate passed SB306 today... After a lengthy conversation with Senator Calderon the bill was explained to be of use for Escrow and Escrow Officers to be able to have direct access to lenders to obtain Short Sale Pay Offs. Unfortunately, it is a...
Short Sales According To Countrywide…Really?
Countrywide can spell "NIGHTMARE" for a listing agent working a Short Sale with them. It's also a lesson in Patents for the Seller of the property. Yesterday while going through the dozen or so short sale files I have with them one thing was consistent with every...
Free Community Short Sale Workshops…
If you or someone you know could benefit from learning about a Short Sale this Free Community Workshop will be certain to help. Many people are looking for alternatives to foreclosure now that loan modifications are not an option. Or you may be in a negative equity...