Posts Tagged ‘nine years’

U.S. Existing Homes Sales Reach Highest Level in Nine Years

December 23rd, 2016 Comments off

Credit: Housely.

Data from the National Association of Realtors (NAR) shows that Americans bought homes in November at the fastest pace in nearly a decade.

Sales of existing homes rose 0.7 percent last month to a seasonally adjusted annual rate of 5.61 million housing units.

That was up from a downwardly revised 5.57 million in October and the highest since sales hit a 5.79 million pace in February 2007. Sales were up 15 percent from a year earlier.

While the news was good, potential challenges loom.

A deepening shortage of houses, higher prices and rising mortgage rates could present problems for the conventional housing market in the next year.

We have a housing shortage,” said Lawrence Yun, the chief economist for NAR. “We are not building enough housing.


Lawrence Yun. Credit: The Business Journals.

As the Daily Business News previously reported, 76 percent of builders indicated availability of labor and cost as their major problems.

While home sales rose 8 percent in the Northeast and 1.4 percent in the South, sales were down in the West and Midwest.

Less than 1.9 million homes were on the market, down 9 percent from a year earlier. The tighter supply of homes pushed the median price up to $234,000, an increase of almost 7 percent from a year ago.

With the increase in sales activity, the rate on the benchmark 30-year fixed rate mortgage last week rose to a 52-week high of 4.16 percent.

According to ABC News, U.S. interest rates have been climbing since the November 8th election of Donald Trump, and investors have bid rates higher because they expect Trump’s program of tax cuts and higher spending on defense and infrastructure will boost economic growth and inflation.

The NAR is predicting that the combination of higher rates and declining affordability of conventional housing in many parts of the country likely will lead to only a small gain in sales of existing homes next year — an estimated 2 percent increase to about 5.52 million.

Conventional Housing Challenges = Manufactured Home Opportunities?


Even figuring in the cost of land, manufactured homes are clearly a bargain, yet equal only some 1% of the total housing market. Graphic credit: MHProNews.

While manufactured home sales are about 1 percent of the total of all U.S. housing sales (new, existing, manufactured, etc.), they represent one of the most effective ways to deliver a quality, affordable solution in a difficult housing market.

Some prospective buyers are going to be straining to get to an affordable monthly payment with mortgage rates higher and may take a harder line on prices (or settle for less home) to make the numbers work,” said Stephen Stanley, chief economist at Amherst Pierpont Securities.

Therein lies the opportunity for manufactured housing, so long as challenges such as discriminatory zoning are dealt with.  See a related report, linked here.


For Masthead commentary on how HUD Secretary nominee, Dr. Ben Carson, could help ease the affordable housing and save taxpayer’s money by enforcing existing law, click here. ##

(Image credits are as shown above.)


RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Co-op Organizer Finances MH Buys

December 28th, 2012 Comments off

According to Financial Advisor Magazine, 40 percent of the manufactured homes in the 100 cooperatively owned manufactured housing communities in New Hampshire are appreciating in value. Since 1984 the New Hampshire Community Loan Fund (NHCLF) has helped organize these 100 communities and began financing MH purchases in 2003, loaning $25 million over the last nine years for residents to purchase 600 homes in New Hampshire. Ranging from $10,000 to $100,000, the default rate on the loans is 1.6 percent. In 2008 NHCLF spun off ROC (resident-owned communities) USA to help organize co-ops nationwide. Studies have shown members of resident-owned communities plant more flowers and are more involved in community activities. NHCLF President Juliana Eades says the homes are appraised and not discriminated against because of age. Commenting on the 8.75 percent interest rate, Eades says, “It’s better than 14% or nothing, and it costs us to do this. We’re a lender and an organizer. Most lenders don’t want to organize, and most organizers don’t know anything about lending. The fact that we’re a lender helps pay for the organizing.” MHProNews learned that three months ago they began offering mortgages on homes sited on land owned by the borrower. Eades gets high praise from the Ford Foundation’s George McCarthy, director of metropolitan opportunity, who says, “Juliana Eades is creative, thoughtful, and willing to take risks and put the institution and the institution’s money on the line to make things happen.”

(Photo credit: ROC USA)