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“Buyers Have Had Enough,” says Redfin’s Glenn Kelman

August 15th, 2018 Comments off

BuyersHaveHadEnoughRedfinCEOGlennKelmanDailyBusinessNewsMHProNews

As U.S. home prices have increased faster than wages for 70 straight months, buyers in markets like these have finally had enough, at least for now. There are still plenty of markets where homebuyer demand is strong. But for the first time in years, we are getting reports from managers of some markets that homebuyer demand is waning, especially in some of Redfin’s largest markets,” according to CEO Glenn Kelman, per Fox.

 

In a release do the Daily Business News on MHProNews, Redfin Housing Demand Index fell 0.7 percent month over month to 120 in June.

Per the real estate firm, “The decline was driven by a 2.2 percent decrease in the seasonally adjusted number of homebuyers requesting tours, and a 12.2 percent decrease in the number making offers on homes from May to June. The Demand Index is based on thousands of Redfin customers requesting home tours and writing offers.”

It’s not the only signal of still strong demand, that nevertheless shows signs of more road bumps ahead.  Several of those bumps, arguably, spell opportunity in disguise for savvy factory-builders and investors.

Home builders’ confidence in the U.S. housing market edged lower in August as builders reported strong demand but also expressed concerns that rising prices loom as a potential threat to sales,” said Fox, adding as follows.

Builder confidence edged down to 67 in August on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), from July’s 68 but in line with economists’ expectations. It is the lowest reading for the HMI since September 2017 when the reading came in at 64. It is, however, still a solid reading with any measure above 50 indicating expansion.”

An interview with Kelman by Bloomberg is posted above.  Redfin is competing against real estate brokers, as well as firms like Zillow.

The above points to opportunities in the affordable housing field. They are also reasons why manufactured housing should be performing far better that it has been. For reasons why the reality is different than the potential, and what that means to potential visionary investors, see the related reports, linked below. ## (News, analysis and commentary.)

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Related Reports:

FEDs, MHI, Buffett’s Berkshire’s Clayton Homes Moat, Affordable Housing, and Billion$ in Manufactured Home Market Manipulation

Constraints on New Home Construction – Is MH the Answer?

March 14th, 2017 Comments off
ConstraintsonNewHomeConstructionIsMHtheAnswercreditClarkCountyHomeBuilders-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Clark County Home Builders.

New data from Redfin shows that more consumers than ever before are in the market for a home.

While sales are picking up, new home construction is well below levels prior to the recession of 2008.

Could manufactured housing be the solution?

According to National Mortgage News, there are key factors that limit new home construction.

ConstraintsonNewHomeConstructionIsMHtheAnswercreditNationalMortgageNews1-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: National Mortgage News.

 

Rising Land Costs are a factor, as many homebuilders who where able to grab empty lots as land prices tanked during the recession. They got a great deal and have built on the land, which is significantly more expensive now that it was just a few years ago.

Severe Labor Shortages are hurting the construction industry badly, with 184,000 construction jobs nationwide left unfilled. As the Daily Business News covered recently, a poll conducted by the National Association of Home Builders (NAHB) revealed that 76 percent of builders indicated cost and availability of labor as their major problem. The poll concludes that the anticipated construction labor shortage could cripple the improving housing market.

ConstraintsonNewHomeConstructionIsMHtheAnswercreditNationalMortgageNews2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: National Mortgage News.

There are currently 184,000 open construction sector jobs,” said Robert Dietz, chief economist at the NAHB.

The rate of unfilled sector jobs has been on the rise and now stands at rates near cycle highs and at levels comparable to the housing boom period. The rising rate of unfilled jobs has slowed the construction sector’s net job growth.

OwnerRenter-creditRealEstateSyracuse-postedDailyBusinessNews-MHProNews-

Credit: Real EstateSyracuse.

The “Renter’s Nation” continues to heat up, as many of the homes that were left vacant during the financial crisis became single-family rentals, and many flock to them to get the home experience, without the cost and restraints.

Credit: National Mortgage News.

Access to Credit is an issue, as it is still very difficult to obtain a traditional home loan, and without buyers for homes, homebuilders have a hard time justifying more home construction.

 

Manufactured Housing to the Rescue?

With all of the challenges facing new home construction, the manufactured housing industry remains a practical and viable solution to making the American Dream accessible to everyone.

Mega successful business people like Berkshire Hathaway’s Warren Buffett, Jim Clayton, founder of Clayton Homes, and ELS Chairman Sam Zell all understand the immense value proposition that manufactured housing provides, with Zell famously being quoted as saying during this interview, “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

solutionusaffordablehousingcrisishidingplainsight-mhlivingnews-billmatchneertonykovach-posteddailybusinessnewsmhpronews

Credit: MHLivingNews.

For more on manufactured housing being the solution that’s hiding in plain sight, see MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s insight into the opportunity linked here. ##

(Image credits are as shown above.)

 

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

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

January Home Sales Report Results

February 23rd, 2017 Comments off
USExistingHomesSalesReachHighestLevelinNineYearscreditHousely-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Housely.

The January U.S. home sales report is out and shows that sales have reached their highest level in a decade, despite limited supply and rising prices.

According to The Real Deal, deals on previously owned homes, which comprise the overwhelming majority of U.S. sales, hit a seasonally adjusted annual rate of 5.7 million in January, a 3.3 percent increase from December, according to data from the National Association of Realtors (NAR).

Buyers are in force in 2017,” said Nela Richardson, Redfin’s chief economist.

Demand for homes, measured by the number of tours that buyers take and the offers they write, is at its highest since January 2013.

The increase in demand bested economist’s expectations, which forecasted an increase of only 1.1 percent for January, following a 2.8 percent decline leading into December.

Credit: Businessweek.

Inventory increased 2.4 percent from December to January, as inventory dropped to its lowest level since the NAR began tracking supply numbers in 1999. According to NAR, it would take about three and a half months to absorb the supply of homes currently on the market.

And that low inventory is helping to push up median prices, which were up 7.1 percent year-over-year in January to $228,900.

As Daily Business News readers are aware, we continue to follow U.S. housing numbers closely, including recent coverage of NAR’s expectation that home sales, and prices, are expected to rise. That story is linked here.

For more on the manufactured housing industry’s reactions to these reports, and the impact of President Donald Trump on the economy, click here. ##

 

(Image credits are as shown above.)

 

Submitted by RC Williams, for the Daily Business NewsMHProNews.

 

 

 

 

RC Williams,

for Daily

Business News,

MHProNews.

Seattle has Tiny Homes, but without Prices to Match

July 18th, 2016 Comments off

Seattle_Tiny_Home_Redfin_credit postedDailyBusinessNewsMHProNewsAccording to government and industry figures, the median size of single-family, U. S. homes in 2015 was 2,521 sq ft. Anything less than 400 sq. ft. is considered “tiny”, and in general anything under 1,000 sq ft is considered small.

In Seattle, where the median price of a single-family home rose 16 percent last year to $666,500 today, affordable housing is at a premium.

As seattlepi tells MHProNews, a search of Redfin on July 12 turned up 73 homes in Seattle for under $400,000. What they discovered ranged from a two-car garage in poor condition on 10,500 sq ft of land, with water and electric meter, for $159,000 (paying for the land, basically); to a 980 sq ft Cape Cod built in 1950, three bedroom, one bath, master bedroom opens onto private deck, wood floors, attached one car garage, for $295,000.

A tiny home of 364 sq ft at the back of a private lot is listed for $300,000, $833 per sq ft. It’s cute and in good shape, but a condo double the size would be $85,000 less.

A 1,230 sq ft home in the North Rainier Beach area with two bedrooms, a bath and private backyard is priced at $379,000. Built in 1923, it has been restored and the kitchen updated.

The condo market has not been spared the uptick: Last year a median-priced condo in King County went for $287,00, but has now increased 22 percent to $350,000. ##

(Photo credit: Redfin-1,230 sq ft home priced at $379,000)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews)

Inventory of New Homes Continues Falling

May 23rd, 2016 Comments off

housingwire creditAs nationalmortgagenews informs MHProNews, new home listings fell in April 1.1 percent, says real estate brokerage Redfin, the first year-over-year loss since Aug. 2014. Noting the steepest declines were in the Northeast, Redfin says nearly two-thirds of the markets it follows had fewer listings during the month than a year ago. Listings in Boston, Philadelphia and New York dropped over ten percent.

A slowdown in new listings reflects a lack of confidence on the part of the homeowner that they can find a desirable home to purchase,” Redfin chief economist Nela Richardson said in a news release Thursday. “This triggers a domino effect down the supply chain that leads to lower sales in tight markets.”

Bidding wars were nearly the norm in Portland, OR and Seattle, where half of all new listings sold in eight days or less, the fastest in the nation. Of offers written by Redfin in Seattle, 77.9% of them faced competition, setting a new record. In Portland, the rate was 68.5.

Meanwhile, nationwide inventory of new homes on the market continues to fall, now for the seventh consecutive month, -3.2 percent; home prices rose 4.8 percent in April; and new home sales increased 2.5 percent. also in April.

The median sale price rose 17.6 percent to $226,000 in Providence, RI, giving it the highest price growth, while Memphis and Nashville, TN had the highest sales growth, 32.6 percent and 31.1 percent, respectively. ##

(Image credit: housingwire–inventory of homes for sale falls)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

High Rents + Low Mortgage Rates = New Landlords

June 19th, 2014 Comments off

As CNNMoney reports low mortgage rates and rising rents make it profitable for homeowners to retain their former homes and become landlords, earning more than the expenses. Susan Young of Kansas refinanced her home at 3.25 percent with a 30-year fixed rate mortgage and bought another home. She receives several hundred dollars over and above monthly expenses and is using that to pay down her loan. “If the interest rate was high, I’d sell,” she said. “But this is such a perfect loan package, I just can’t bring myself to give it up.” When rates were below 3.4 percent between 2011 and 2013, Redfin reports 19 percent of homeowners either refinanced or purchased a home. While home prices remain 21 percent below their mid 2006 levels, MHProNews has learned rents have risen 20 percent since then, potentially helping those whose mortgages remain underwater and cannot profit from a sale to gain some financial footing. ##

(Image credit: rent-direct.com)

Potential Home Buyers Shift Attention to Holiday Shopping

December 6th, 2013 Comments off

The number of people looking to buy a home in November dropped seven percent from October, but it was less than the 11 percent drop for the same period last year, according to what Redfin tells nationalmortgagenews. Meanwhile, eleven percent fewer people signed offers in Nov. over Oct., but an improvement over the 14 percent decline for the same month-to-month in 2012. But as MHProNews has learned, tours were down 28 percent the week of Thanksgiving from the previous week, and offers fell 23 percent. Additionally, mortgage applications declined 13 percent that same week, seasonally adjusted, with a four percent drop in purchase applications, according to the Mortgage Bankers Association (MBA).

(Image credit: hansafx)

Movie Star’s Two Million Dollar Manufactured Home Masterpiece Creates Teachable Moment

September 2nd, 2013 Comments off

patio-29500-heathercliff-rd-#189-malibu-ca-90265-point-dume-club-betsy-russell-manufactured-home-living-news-com-

Following up on a popular story from last Friday, ManufacturedHomeLivingNews.com is showcasing Saw move star Betsy Russell’s $1,999,999 luxury pad overlooking the Pacific in posh Malibu, California. Numerous media outlets picked up on the real estate listing in exclusive Pointe Dume Club manufactured home land lease community. But LAist, TMZ and others often missed the point or disrespected a home and lifestyle they were simultaneously gushing about. “We have an opportunity to turn this into a teachable moment for the media and public.” trade publisher and consultant L. A. “Tony” Kovach said. “Check out this story and dazzling photos at this link, but also share it via social media and your media outlet!   This is an opportunity to sell more homes in your market, because some of those who may see your emailed link, Facebook post or Pinterest pin could realize the quality and appealing lifestyles that our industry is all about.” ##

 

http://manufacturedhomelivingnews.com/saws-betsy-russells-2-million-dollar-manufactured-home-a-bargain-but-tmzmedia-dont-get-it/

(Photo Credit: MLS/Redfin)

Brokerage: Sales, Prices Stronger in 2013

December 17th, 2012 Comments off

Real estate brokerage Redfin of Seattle says survey results indicate there will be strong consumer demand for homes starting in early Jan., and combined with low inventory should keep prices rising. According to originationnews, the number of people looking for a new home who expect the price to rise has more than doubled since the first quarter of the year. The Q4 survey shows 71 percent of the respondents believe prices will rise in the coming 12 months as opposed to 34 percent in Q1, 2012. Almost 60 percent say now is a good time to buy because the interest rates are low, the prime motivating factor to buy. MHProNews has learned the survey showed only five percent are concerned about the fiscal cliff and the possible loss of the mortgage interest deduction.

(Image credit: etftrends)