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Posts Tagged ‘Trulia’

Understanding the 5 Points of U.S. Housing

August 14th, 2017 Comments off
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Featured image credits, MHProNews/Pixabay.

The inventory is reaching historic lows. It’s never declined faster than it did last month. It’s freaking us out — it’s affecting our business; it’s limiting our sales,” Glenn Kelman, CEO of Seattle-based Redfin, a real estate firm, told CBNC back in May.

We’re going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch,” Kelman said.

There are a number of experts with theories as to why there’s a shortage of housing for sale in the current market.

According to Trulia, there are five common theories that attempt to explain why the number of homes for sale has yet to increase enough to satisfy demands:

  • Investors buying and not selling,
  • Rising home prices have priced people out of moving,
  • Owners don’t want to sell, thinking they cannot afford a new home,
  • Too many Baby Boomers choosing to stay put in their currently owned homes, and
  • Not enough new construction.

While many studies have taken a look into each of these issues individually, Trulia says they are the first to look at the market as a whole. They look at each of the factors mentioned above and how they impact one another, not only the market itself.

Their results may be surprising to some, but no so much to others.

InventoryPuzzleCreditTruliaBloombergDailyBusinessNews

Investor Puzzle, Credits, Trulia, Bloomberg.

They found that the lack of new home construction was where the largest impact on the number of homes for sale.  This is where manufactured housing, and the application of enhanced preemption, could make a difference for consumers; and the sellers of new homes in the MH industry.

MythFactHomeBuildingCreditsTruliaDailyBusinessNews

The factor that makes the next biggest impact on the market was that investors – who buy properties that end up as single-family rentals – hold on to their properties, rather than listing them for sale on the market.

This particular phenomenon, according to Trulia, creates a 2.8 percent decrease in home inventory.

MythFactInvestorsCreditsTruliaDailyBusinessNews

Following investors in significance of impact on the market is baby boomers, those homeowners who are 55-years-of-age and older. See the chart above.

Trulia notes that this could be due to several factors, and could change as homeowners in this group age and either decide to stay put or move into retirement homes and communities as the years go on.

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Credit, Trulia.

Finally, the study found that home values had the least impact on the current shortage of homes for sale in the U.S

How MH Could Boost Housing Inventory

We really need to increase homebuilding if we want housing inventory to look more normal,” said Ralph McLaughlin, Trulia’s Chief Economist.

RalphBMcLauglinChiefEconomistTrulaSanFranciscoCADailyBusinessNewsMHProNews

While home building has seen an increase for the first time in 4 months as the Daily Business News recently reported, there is still a need for more homes in order to fill this ever-growing shortage.

JohnBostickPresidentSunshineHomesRedBayAL-OurIndustryProvidesGreenAppealingOptionsWeeksNotMonths-DailyBusinessNews-MHProNews

More specifically, there needs to be more affordable homes on the market to really help get things moving again.


While industry professionals largely agree on the ability of manufactured housing to serve the needs – and several are proving that capability – there’s billions of dollars of growth potential possible, based on the data that Trulia has reported. ##

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for MHProNews.

 

 

Homes in America – The Land Where Even Doctors Struggle

April 13th, 2017 Comments off

HomesinAmericaLandWhereEvenDoctorsStrugglecreditReMaxLeadingEdgePostedMHLivingNewsIn the United States, some are native born, some immigrate, but all are unified in pursuing the American Dream.

For most, that includes owning a home. But according to a new report on housing affordability from real estate firm Trulia, there are some places in the country where even doctors struggle when it comes to home buying.

A combination of home prices on the rise and inventory at historic lows has pushed homeownership further and further away from middle-income Americans.

Nationwide, the average American worker earns $37,040 annually, while the median cost of a home is $254,900.  This is another compelling reason why there are trillions of dollars in opportunities for manufactured housing, per the report earlier this week by Soheyla Kovach.

The full story on the Trulia report is available at MHLivingNews, linked here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Report submitted by RC Williams to the Daily Business News, MHProNews.

Affordable Home Inventory Crisis – Manufactured Housing Center Stage?

April 7th, 2017 Comments off

Credit: NAHB.

New information from the National Association of Homebuilders (NAHB), shows that an elevation in home values, triggered by tight inventory conditions across all housing categories is contributing to growth in high priced home sales.

While this category grows, a more ominous sign is on the horizon.

According to Construction Dive, student debt, slow wage growth and high rents are making it difficult for younger buyers, who typically purchase lower-priced homes, to save enough for a down payment.

Additionally, information from Trulia shows that entry level housing inventory continues to contract, with supplies falling 8.7 percent in the first quarter of 2017, while the median list prices for homes as up 8.3 percent.

With existing homeowners appearing to be slower to move up to a larger home, and in turn opening up their smaller properties for first time homebuyers, some larger site built home companies are working to fill the inventory gap. Meritage, D.R. Horton and Toll Brothers have all announced entry-level home plans with smaller footprints and fewer amenities to help reduce the cost of building at such a low price-point.

According to the latest NAHB/Wells Fargo Housing Market Index, homebuilders remain optimistic for continued demand for single-family home construction, which has been trending up since the beginning of 2015.

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The new Champion plant in Benton, KY. Credit: Woodworking Network.

 

Does Manufactured Housing Take Center Stage?

The Daily Business NewsMHProNews and MHLivingNews have covered the case for manufactured housing as a viable solution to hope for the American Dream of home ownership at a reasonable price extensively, including Bloomberg making a statement to the same effect.

The ability to significantly cut down on production time, provide a high quality product to federal standards, all at a lower price point serves as the ideal solution to inventory and housing challenges. The titans of business recognize the opportunity as well, as giants and independents alike are actually “doubling down” on the industry.

Sam Zell. Credit: WSJ.

ELS Chairman Sam Zell has been famously quoted as correcting misconceptions about the industry, saying during this interview, “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

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.)

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews

Housing Starts See Biggest Gains in Ten Years

November 21st, 2016 Comments off
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Credit: Men of Value.

New data from the U.S. Census Bureau shows that new home construction increased significantly in October.

Privately owned housing starts were up 25.5 percent for the month, beating the revised estimate of 1.05 to 1.32 million in September. The number is also up 23.3 percent when compared year on year.

Single-family housing starts increased 10.7 percent from September’s 785,000 to 869,000 in October.

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David Berson. Credit: LinkedIn.

Housing starts jumped in October – climbing to the strongest pace since 2007 – as multifamily units bounced back sharply from an unusual (and temporary) decline during September,” said Nationwide Insurance Chief Economist David Berson. “Single family starts continued their rise as well, as strong demand for owner-occupied housing spurs home construction activity.

What’s leading to the increase may be surprising – millennials.

Housing starts are being driven higher by improved household growth as the economy promotes further job and income gains,” Berson said.

With improved employment and income prospects, millennials are an expanding portion of housing demand as they move out of their parents’ homes – increasingly to form families. 

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Credit: NAHB.

Building permits also increased in October, up 4.6 percent year-over-year according to the National Association of Home Builders/Wells Fargo Housing Market Index. Combined with housing starts, there is strong builder confidence for the month of November.

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Bill Banfield. Credit: LinkedIn.

The report is a boost of confidence for the housing market, as we haven’t seen a month-to-month leap like this in more than 30 years,” said Quicken Loans Vice President Bill Banfield.

While much of this was driven by the multifamily segment, we cannot overlook the significance of the gains made on single-family home construction – increasing to their highest levels in nine years. Furthermore, continued gains in permits led by the single-family sector keep optimism high as we move toward the winter months.

At least one expert sees even more room for growth.

Controlling for the number of households in the U.S., housing starts are only about 66% of their 50-year average,” said Trulia Chief Economist Ralph McLaughlin. “Clearly, the homebuilding sector represents an industry that has potential to grow under a Trump stimulus plan.

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Ralph McLaughlin. Credit: LinkedIn.

There’s also the potential “Trump Effect“.

A big question heading into 2017 is how homebuilders will fare under a Trump administration,” McLaughlin said.

While we think some of his broader economic policies might hurt builders, such as immigration and trade policies that could restrict both labor supply and raw materials, we also think he’ll likely implement builder-friendly policies, such as infrastructure stimulus and financial sector reform.

While the construction sector has a high number of undocumented workers, which could be a cause of concern with the Trump Administration’s potential plans regarding deportations, McLaughlin still sees potential benefits.

President-Elect Trump could implement a number of policies to help push the number of starts toward their historical average, but there’s a long way to go,” McLaughlin said.

Though Mr. Trump has discussed demand-side policies that would ease mortgage lending, such as Dodd-Frank reform, we encourage the President-Elect to also focus on supply-side policies given inventory shortages across the country.

The Daily Business News recently provided in-depth coverage on plans for Dodd-Frank reform from the Trump Administration, and a report from Realtor on the 2017 home buying season and the potential impact that millennials could have. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

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

Living in an Owned Home Young Begets Living in an Owned Home Later

August 13th, 2016 Comments off

house_keys_CNNMoney__Joshua_Scott postedDailyBusinessNewsMHPronewsA study by Trulia, based on 40 years of data from the University of Michigan’s Panel Study Income Dynamics, reveals that children who grew up in a home owned by their parents were almost three times as likely to own a home as adults, according to housingwire.

A 40-year-old with annual household income of $100,000 who grew up in a family-owned home is 79 percent likely to become a homeowner, compared to 56 percent for someone in the same position whose parents rented.

Millennials, aged 19-34, may not be so interested in buying a house because more than other generations they grew up in rental homes: Only 53.1 percent of Millennials grew up in owned homes, compared to 58.9 percent of those 35 to 45. As MHProNews understands, at least some of the Millennials were most likely still at home when the housing bubble burst eight years ago, and may have witnessed their parents enduring upside down mortgages, as well as their friends’ parents, creating a possible psychological block.

Further, 11.4 percent of Millennials whose parents were home owners received financial help for a down payment from their parents, as compared to only 2.6 percent of those who grew up in rentals.

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Key slides from Trulia study. For related story, see below or click above.

The bottom line is, those who grew up in an owned home, regardless of income, were more likely in all ages and incomes to own a home. To wit, a 25-year-old with a household income of $40,000 only has a 12 percent chance of homeownership if his or her parents rented during childhood. Conversely, this same 25-year-old would have a 29 percent chance of ownership if his or her parents owned.

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Key slide from Trulia study.

Furthermore, a 40-year-old with the same income would have a 28 percent chance of owning a home if they grew up in a rental, as opposed to 53 percent of t hose who grew up in an owned home.

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From Trulia’s report, which underscored Donald Trump’s pro-homeownership campaign points, for related story on his address to the NAHB, click here.

Childhood housing status matters less as income and age grow. A 40-year-old with household income of $250,000 would have a 90 percent chance of owning a home if he or she grew up in a rental, and a 96 percent chance if their parents owned their childhood home.  

Trulia’s report also referenced the Harvard University Joint Housing Study on Low Income and Minority Home Ownership, and Wealth-building, to download that report, click here.##

(Editor’s Note: as with numerous Daily Business News reports, this report underscores the value of better informing the public about the value of home ownership and how manufactured homes are a great means of achieving the American Dream, which is the lived mission of ManufacturedHomeLivingNews.com, see this link here.)

(Photo credit: CNNMoney/Joshua Scott, house keys)

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

New Home Sales Surge in April, especially in the Northeast

May 25th, 2016 Comments off

new_house_sold___reutersGood news for the spring buying season came in the form of new home sales trumpeting 16.6% in April, the best monthly rate since 2008, as sales rose to a seasonally-adjusted annual rate (SAAR) of 619,000 units, up from 531,000 in March. According to the Commerce Department, as reported to MHProNews by thehill, the surge represents a 23.8 percent rise above the April 2015 estimate of 500,000.

Jonathan Smoke, chief economist at realtor.com, said that “at last we have a clear, statistically significant view that the new home market is having its best spring buying season in a decade.”

At the end of April, 2016 there were approximately only 243,000 new homes for sale, which amounts to a 4.7 month supply, down from 5.5 months in March.

The median sales prices of new homes sold in April was $321,100, while the average was $379,800.

Regionally, the biggest jump was in the Northeast where sales rose 52.8 percent. The West improved 18.8 percent and the South 15.8 percent. The Midwest saw a decline of 4.8 percent.

Robert Dietz of the National Association of Home Builders (NAHB) sees the increase as a sign of increased production to come, while Ralph McLaughlin of Trulia said “This should put to rest fears of an oncoming recession.” Ed Brady, also of the NAHB, says the surge is an indication “that growing demand will keep the housing sector on an upward trajectory through the spring buying season.”

MHProNews understands the volatility of the new home market, often highly changeable month to month, while the production of manufactured homes has been on a steady rise since the rebound of Aug. 2011. ##

(Photo credit: reuters)

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Home Prices Continue to Rise Faster than Wages

May 3rd, 2016 Comments off

house price increases housingwire creditU. S. house prices rose 2.1 percent between Feb. and March, including distressed sales, and 6.7 percent between March 2015 and March 2016, according to constructiondive. Wages for would-be first time homebuyers likely did not rise that much on the year, MHProNews knows, putting a home out of reach.

Reporting in its Home Price Index, CoreLogic also predicted home prices will increase 0.7 percent between March and April, and 5.3 percent between March 2016 and March 2017. That is a 12 percent jump from 2015 to 2017.

President and CEO of CoreLogic, Anand Nallathambi, said home prices have appreciated nearly 40 percent since bottoming out five years ago, with the West seeing the most appreciation.

Housing helped keep U.S. economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012,” CoreLogic Chief Economist Frank Nothaft said in a release. “Low interest rates and increased home building suggest that housing will continue to be a growth driver.”

Trulia reports starter-home inventory dropped 44 percent in the last five years, and that sector’s prices have increased 5.6 percent.

The National Association of Realtors (NAR) reports continuing price growth is hindering home construction, although some builders complain the regulatory burden is itself a barrier. The National Association of Home Builders (NAHB) testified recently before Congress that regulatory expenses can increase the cost of a house by 25 percent. ##

(Image credit: housingwire–house price increases)

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

Pending Home Sales Fell in June

July 30th, 2015 Comments off

pending sale  paul sakuma  AP Photo creditAccording to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI), pending home sales declined in June, for the first time in 2015, following five straight months of increases. As themreport informs MHProNews, the drop was -1.8 percent in June to 110.3, but remains 8.2 percent above the year-ago level of 101. Despite the drop last month, it is still the third highest reading this year and has increased year-over-year for ten consecutive months.

Lawrence Yun, NAR chief economist, states the overall trend is a strong pace of home sales. “Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” Yun said. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.

Trulia’s Chief Economist Selma Hepp echoed Yun’s sentiment, noting “We’re starting to see a slowdown which may be because home prices are pushing up against the affordability ceiling especially in faster moving markets where inventory is tight.”

Small gains reported in the Northeast and West were offset by larger losses in the Midwest and South. Nevertheless, analysts agree the year will likely finish stronger than in recent years. ##

(Photo credit: Associated Press/Paul Sakuma)

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

Homeownership still Less Expensive than Renting

May 19th, 2015 Comments off

home buying   firstbanktrust  creditAccording to a report by Trulia, on a national level homeownership is 35 percent cheaper that renting, up from 33 percent last year. While home prices have risen a little more than rents, lower mortgage rates provide a financial advantage to home buyers.

The top five markets where buying provides the least advantage over renting are Honolulu, San Jose, CA, Lancaster, Penn., Sacramento, CA and San Francisco. In fact, six of the ten markets where buying has the least edge over renting are in CA, reports CNNMoney.

In general, there is more financial advantage to buying versus renting in the South. In Sarasota, Florida it is 55 percent less expensive to buy than rent. However, if mortgage rates begin to rise, renting may have a financial advantage over buying, as MHProNews understands.

Ralph McLaughlin, housing economist at Trulia, notes that a down payment may remain the biggest obstacle to homebuyers. He says, “Even though we are a few years out of the recession, it can still take quite a while to save up for a down payment, especially when rents are high.

It should be noted that buying a manufactured home has a distinct advantage over renting when weighing finances. ##

(Image credit: firstbanktrust)

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

U.S. Rents Keep Climbing, Preventing Many from Saving to Buy a Home

January 26th, 2015 Comments off

apartment-hunting-friendsAssociated Press tells MHProNews that rental prices rose 3.3 percent in December compared with 12 months earlier, the real estate data firm Zillow announced on Friday, January 23. Although that increase is less than the recent appreciation in home values, a surge in rental costs in several of the hottest markets indicates that renters who aspire to buy homes face mounting financial challenges.

U.S. home rental prices continued to climb at a modest pace in December, but rapidly escalating costs in cities such as San Francisco and Denver suggest that renters are facing more financial pressure. As a result, the share of Americans who own their homes has slipped to 64.4 percent from a peak of 69.2 percent in 2004. Because fewer Americans can afford to buy a home, demand for apartments and rental houses has pushed up rental prices.

Arturo Breton and Aurelio Medina consult their
smartphones during an apartment rental search.

“We do not have affordable rental housing resources to meet the demand,” said Barry Zigas, director of housing policy at the Consumer Federation of America, at an industry conference last week.

“Studies show that rental prices have risen 52 percent since 2000, while incomes for renters have only increased 25 percent,” said Stan Humphries, chief economist at Zillow. The higher costs make it difficult for renters to save for a down payment, which then causes them to rent for a longer period of time and delay any potential home purchases. “You don’t have to be a housing economist to see that there is a problem there,” Humphries said.

U.S. News & World Report tells MHProNews that in 2014, the share of first-time homebuyers fell to its lowest level since 1987, according to a recent report from the National Association of Realtors. Even though home prices are rising less quickly, high rents – compounded with substandard salaries, student loans, and other kinds of debt – make it difficult for younger renters to save enough for a down payment on a first home.

“In expensive markets in California and elsewhere, both home buying and renting have become less affordable in the housing recovery. Prices and rents have both risen faster than wages,” says Jed Kolko, Trulia’s chief economist. “Those big increases in rents make buying look more attractive, but at the same time, it makes it harder to save for a down payment if you’re spending more on rent.”

Recently, rents jumped 15.4 percent in the San Francisco area to a median monthly cost of $3,031, an increased mirrored by San Jose where prices were up 14.5 percent to $3,187 a month. Rents climbed 10.5 percent in Denver to $1,817 a month. Kansas City also saw a substantial 8.5 percent gain to $1,204 a month.

Other cities seeing substantial rent increases included Miami, Los Angeles, New York, and Oakland. In all of those cities, the median monthly rent for a two-bedroom apartment ate up at least 49 percent of a person’s income. For rent and utilities to be considered affordable, they are supposed to take up no more than 30 percent of a household’s income. Unfortunately, that goal is increasingly unattainable for middle-income families as a tightening market pushes up rents ever faster, outrunning modest increases in pay.

The strain is not limited to the usual high-cost cities like New York and San Francisco. An analysis by Zillow, the real estate website, found 90 cities where the median rent — not including utilities — was more than 30 percent of the median gross income.

Nationally, half of all renters are now spending more than 30 percent of their income on housing, according to a comprehensive Harvard study.  One of the most expensive cities for renters is Miami, where rents, on average, consume 43 percent of the typical household income.

The New York Times tells MHProNews that Stella Santamaria, a divorced 40-year-old math teacher, has been looking for an apartment in Miami for more than six months. “We’re kind of sick of talking about it,” she said of herself and fellow teachers in the same boat. “It’s like, are you still living with your mom? Yeah, are you? Yeah.” After 11 years as a teacher, Ms. Santamaria makes $41,000, considerably less than the city’s median income, which is $48,000, according to Zillow.

Even dual-income professional couples are being priced out of the walkable urban-core neighborhoods where many of them want to live. Stuart Kennedy, 29, a senior program officer at a nonprofit group, said he and his girlfriend, a lawyer, will be losing their $2,300 a month rental house. Since they found the place a year ago, rents in the area have increased sharply.

“If you go by a third of your income, that formula, even with how comfortable our incomes are, it looks like it’s going to be impossible,” Kennedy said.

As rents increase in the tightest markets, many people are discovering that living on their own is proving unaffordable, forcing them to double up again. Arturo Breton, a 37-year-old waiter in Miami Beach, said that after years of living on his own, he was joining forces with a roommate who works as a manager at J.C. Penney. “I’ve come to the conclusion that in this country, it’s easier for two people to pay the rent than for one person,” he said.

In many markets, buying a home is considerably cheaper than renting, and Miami is no exception. However, many people are shut out of buying because their income is too low, they don’t qualify for a mortgage, or they are burdened by other debt. In 2008, a quarter of rental applicants were still paying off student loans, according to CoreLogic, but as of last fall, half of them were doing so.

Steve Gunn, 25, the marketing director for a Miami real estate brokerage firm, said he could certainly afford an apartment on his salary of $52,500, if he weren’t paying more than $800 a month in student loan debt. Instead, he commutes 90 minutes to work. From his mother’s house. ##

(Photo Credit: New York Times)

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Article Submitted by Sandra Lane to – Daily Business News- MHProNews.