Posts Tagged ‘homebuilder’

New Home Sales Less Than Half of Historical Norms

Posted on June 13, 2017 by Laura Lam

The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.  How many new home sales do we need for the market to look normal?  According to Trulia Chief Economist Ralph McLaughlin, if we compare the share of new home sales to total sales, that share needs to more than double.  “In April, new home sales made up about 11.9% of all home sales, which is less than half of the historical average of 23.6%,” McLaughlin said. However other experts explain…

Switching Gears: Builders Turn to Starter Homes to Lure Millennials

Posted on May 22, 2017 by Laura Lam

First-time buyers are rushing to buy homes after a decade on the sidelines, promising to kick a housing market already flush with luxury sales into higher gear.  Tracking home sales to a particular age group is hard, but a series of data points form a mosaic of a generation of young people ready to buy: The number of new-owner households was double the number of new-renter households in the first quarter of this year, the share of first-time buyers is creeping back toward the historical average, and mortgages for first-timers are on the rise. “They’re crawling out of their parents’…

Homebuilder Confidence Slips in April

Posted on April 19, 2017 by Laura Lam

Confidence among homebuilders cooled in April after jumping a month earlier to the highest level since mid-2005, according to data from the National Association of Home Builders/Wells Fargo.  Builder sentiment eased to 68 in April from a reading of 71 in March that was the strongest since June 2005. The median forecast in a Bloomberg survey was for 70; readings greater than 50 indicate more respondents reported good market conditions. The measure of the 6-month sales outlook fell to 75 after a reading of 78 that matched the highest since 2005. The index of current sales cooled to 74 this…

U.S. Housing Market Stirs Excitement

Posted on March 14, 2016 by Laura Lam

Recent economic data and corporate earnings reports make it easy to remember why the housing market is expected to be one of the U.S. economy’s bright spots for years to come.  Home Depot Inc. and Toll Brothers Inc. reported their calendar fourth-quarter 2015 results before the market opened, both exceeding analyst estimates on the top and bottom lines. Douglas Yearley, chief executive officer of Toll Brothers, said a dearth of labor crimped the homebuilder’s operations by extending build times, a sign of strong activity in the sector. Yearley noted that he didn’t see any recessionary conditions in the U.S. but cautioned that volatility in financial markets was beginning to…

Homebuilder Confidence Declines

Posted on February 25, 2016 by Laura Lam

Confidence among homebuilders dropped in February to a 9-month low as potential buyers stayed away, interrupting the steady progress residential real estate had built over the course of 2015.  The National Association of Home Builders/Wells Fargo builder sentiment index decreased to 58 in February from a revised reading of 61 the prior month.  Readings greater than 50 mean more respondents reported good market conditions. Stable employment gains, muted firings and a nascent acceleration in wages are helping support U.S. consumers considering a home purchase, even as fears build around a potential global recession. Borrowing costs have so far remained close…

Americans are Fleeing the Suburbs

Posted on July 03, 2014 by Saldutti

The American dream: a white picket fence and a patch of grass to call your own. In 2002 President Bush declared “owning a home lies at the heart of the American dream,” and wanted, “everybody in America to own their own home.” Twelve years and a housing crisis later, it seems as though that’s no longer the case: Americans are packing up and booking it to the city. The American dream is fundamentally about opportunity,” says Vishaan Chakrabarti of the Center for Urban Real Estate at Columbia University. “It’s not so much where you live but whether you can do…