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Monthly Archives: October 2014

New-home sales increase in September

Sales of single-family, new homes increased in September - by nearly 0.2 percent, up to 467,000 units, according to industry professionals - while the rates for August were readjusted to be much lower than originally thought. Recent numbers released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development revise the initial numbers for that month down by 0.2 percent from 504,000 to 466,000 units sold.

According to housing market professionals, the revision was not surprising. Overall, the numbers that had been listed were not in line with the modest growth that the housing industry has experienced in recent months. The August numbers, which were much higher than previous month’s sales, prompted questioning from officials, including the National Association of Home Builders’ chief economist, David Crowe.

Remodel Market Index increases nationwide

In the housing industry, we know that each part of the process is not created equal. Sometimes, buyers and sellers would rather deal with builders for their next home and sometimes, they want a more vintage, historic space in a quaint old town. As a builder, it can be hard to know what potential buyers are wanting from their potential new investments, which is why it is so important to stay on top of the changing and evolving housing trends.

Recently, the National Association of Home Builders’ (NAHB) announced that their Remodeling Market Index (RMI) had reached a reading of 57 for the sixth consecutive quarter. Any RMI above 50 indicates that more home remodelers felt more positive about the state of the renovation market than negative. With the current RMI at 57, industry professionals expect the future of remodeling to be promising for homeowners and buyers.

Rate of pending home sales contradicts expectation

On this blog, we talk quite a bit about all the different branches of the housing market and how they work together to improve the economy as a whole. With a new month, and a new quarter, just started, many reports that analyze the progress of the industry were released last week revealing the state of the market and what builders, buyers and sellers can expect in the months to come.

According to a report from the National Association of Realtors® (NAR), the number of pending home sales actually decreased during the month of September. This was a direct contradiction to what had been expected by industry professionals. The report states that the index for home sales increased 0.3 percent following a 1.0 percent decrease in August. Most industry watchers thought lenders had been anticipating at least a 1.0 percent increase in September.

Reports show that America is single

Today’s population of Americans is buying homes in different ways than generations past. Likewise, they are purchasing new properties for different reasons than those of their parents and grandparents.

While the baby boomers and Generation Y bought homes to accommodate their expanding families, Gen Xers and millennials are purchasing properties to expand their financial portfolio, avoid wasting money on rental properties and finding a location to establish themselves in their career. In large part, this is because the married age of most of the American population is older than it used to be. Additionally, the population of single individuals has risen dramatically in the past few decades.

7 places to live on a Social Security salary

Much like the millennial generation in today’s housing market, baby boomers and other older demographics are having to reassess where their Social Security benefits will take them after retiring.

While once upon a time the monthly income from Social Security would afford you a decent lifestyle most anywhere you liked, nowadays, retirees have to be more conscious of their budgets and geographic location to live within their means. Recently, Realtor Magazine determined that the average Social Security income for a couple in today’s economy would make approximately $31,000 per year, or $1,294 per person each month.

Fluctuation in mortgage rates pushes potential market forward

On this blog, we talk a lot about the changing trends and facets of the housing market and what those alterations mean for potential buyers, sellers, builders and agents who are trying to find their dream space.

When it comes to affording, finding and financing this ideal place though, there are a lot of factors at play. First and foremost is usually the mortgage rate that will accompany your new home. Recently, the Mortgage Bankers Association (MBA) announced that a standard mortgage interest rate had dropped to below 4 percent - which is a statistically good number in attracting potential buyers. Additionally, the rates of applications rose to 5.6 percent this week compared with the data from the previous week.

College towns: under-utilized market?

We dedicate a lot of space on this blog to important industry trends in and around the housing market. For builders and developers, it is critical that they have their finger on the pulse of the latest happenings in the movement of populations to and from major metro areas.

One area of the housing market that is often underdeveloped or under-utilized is cities and towns that have bustling college populations. Many builders and buyers don’t consider these areas as potential money making opportunities for a lot of reasons.

Home sales influenced by extras

Fall tends to be a popular time for open houses and purchasing as the change in the weather oftentimes brings down the price on some of those properties that would have been out of reach because of their location or amenities during the summer months.

This season, many homebuilders are also piling on incentives to increase interest in buying new homes. One particular area in Phoenix, Arizona has had builders offer swimming pools, built-in barbeque pits, and subsidized mortgages as extras to lure potential buyers.

Borrowing costs and fixed-rate mortgages decrease

In the ever evolving housing market, it can be hard for buyers and sellers to know just when the right time to invest in a property is. While the chance of the market being predictable is a long shot, the near future for buyers looks promising.

When it comes to purchasing a home, it is not only a big emotional decision, but it is also a giant financial endeavor. For home buyers who don’t have cash to put down on a home, the need to borrow and save can seem astronomical. In recent years, it has been increasingly difficult as wages are low and home costs have been high.

Public transportation drives more than bus routes

Being an effective and successful builder means knowing what the next big place to burst onto the housing market is going to be. ‘If you build it, they will come’ only works if you do a bit of background research first.

A new study that examines the impact that public transportation locations has on the popularity of certain neighborhoods was recently conducted by the Transit Center.