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.
When a Loan Modification won't help you keep your home….
If your reading this blog, chances are you have tried a loan modification and found that the terms offered to you by your lender are not going to do enough to allow you to keep your home. Let's face it, the hype of loan modifications gave us all hope in some...
Loan Modifications are Granted…Not Negotiated
After dozens of submissions for Loan Modifications for our friends and family...as well as our clients, we can confirm this.... In our experience, a loan modification is either Granted or Denied. The terms of the loan modification are solely up to the servicer....
Facing The Giants
This is a great motivational video...a short 6 minutes...but praiseworthy. As agents we're faced with "Peaks and Valleys." It's how you address the steep climbs when your in the valley's that tests our reserve. Challenge yourself to go the extra mile. Be a leader. By...
Home Wrecker!
Victorville, CA... Kim and I have 2 short sale listings next to this catastrophe'. Price drops have hit as much as 65% from their 2006 highs. Despite the rhetoric coming from Washington's talking heads, we still have 2 to 4 years of this devastation left in the So Cal...
Bank of America Easing Short Sale Policy
In an article released today, Bank of America is easing their policy to accept no less than 10% on HELOCs and 2nd mortgages. The new policy is reducing the payoff amount to 5% for a short sale. A majority (77%) of California foreclosures carry HELOCs and 2nd...
California Defaults Reach Record High
According to MDA Datequick statistics (Monitors Real Estate Activity), 135,431 NOD's sent to California homeowners in 1st quarter of 2009...up 80 percent from 4th quarter 2008. What changed? Banks sat on their hands while the government restricted foreclosures with...
Loan Modification Not Working?
Wish we could say that was a unique situation, but in California most loan modifications are not working! If you've been down that path and now realize that keeping the property is not an option, call us. Don't just walk away from that property and give it back to the...
Are You Hungry? Watch This and Think of Yourself Blessed!
View this movie at cultureunplugged.com
Just posted on ActiveRain: Rea…
Just posted on ActiveRain: Real Estate Short Sale Myths Video Series #1 http://activerain.com/t/1009652
Inland Empire Homes Expected to Drop an Additional 10-30% Over the Next 1.5 Years
Kris & Kim share a report from the Inland Valley Daily Bulletin. California Home prices are going to decline an additional 10-30% over the next 1.5 years. If you need help selling your home that's underwater...Call Kris & Kim 714-615-7605
Don't Let Your Home go Into Foreclosure
Foreclosure is an ugly word and there are few ways to avoid it. The best and most effective answer is to sell the property. If your upside down in value then it would be called a Short Sale...or selling the property "short" of what's owed. They are common place in...
Recession Is Spawning A Group Of "Newly Poor" People Within San Bernardino County
An eye opening article was just published, referring to an onslaught of people that are being referred to as the "Newly Poor". Gary Madden, the director of San Bernardino County 2-1-1, states this...."We're on track for about 70,000 calls this year for people needing...
My Homes Not Only Depreciated in Value…The Neighborhood is NOT What it Used to Be!
Something to think about when your trying to figure out how to keep that beautiful home you purchased a few years ago. If your like most homeowners, when you purchased your home, you placed a good chunk of money down on a beautiful home in your desired neighborhood. ...
California Foreclosure "Shadow Inventory" between 80,000 & 100,000 Homes. Can It Get Any Worse?
Shadow inventory is the number of foreclosed homes not currently on the market. What this means is that when this foreclosed inventory is unleashed, prices will be pushed down much further than projections estimated. Current estimates are a continued drop of 10 to 30%...
Home Prices expected to decline according to Analyst….IE watch out!
Hot off the press…According to the senior director of market economics and risk analysis for Walnut Creek-based PMI Group Inc., a mortgage investor insurance firm, was commenting during an interview Monday about PMI's recently-released report on home prices. La Vaughn...
Losing your home to foreclosure?
Kris & Kim share thier Short Sale experience in a series of short videos. They have helped families in trouble by negotiating Short Sales of proeprties that have become too much for the families to handle. In many cases, Kris & Kim have helped these same...
Multiple Lenders On Your Short Sale…No Problem!
Kris & Kim share their experience with multiple lenders on a short sale. It is possible with the right help from your agent. Call Kris & Kim if you have any questions...714-615-7605 YouTube, Yahoo,
Can't Afford Your House Payments?…Short Sale
It's hard to believe that nearly 2 years have passed by since the real estate market started to self destruct...The word Short Sale was not something that was heard often. Even President Obama talks about them! Banks are overwhelmed with them and homeowners are...