News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
The Nation’s 14 Most Overvalued Housing Markets
Mark Liu / CoreLogic / September 28, 2015
While home prices continue to slowly rise and many markets return to normal prices, or remain undervalued, the number of overvalued markets doubled from the first to the second quarter of this year. In the nation’s top 100 cities, there are now 14 markets tabbed as overvalued, and Texas is a hot spot, with five of its six biggest metros among the overvalued. Other areas where prices have grown too much too soon include Cape Coral, Fla., the Knoxville andNashville areas of Tennessee, Philadelphia, and even Denver. Yet, most markets are still at sustainable levels as they continue to recover:Read More
Beware The Wildly Optimistic Forecast
Tobias Morrison / LinkedIn / September 25, 2015
In the construction industry (and most businesses in general), one of the most dangerous pitfalls you can make is falling into a trap of over-forecasting. It is human nature to want to justify investments or strategies by relying on the best-case scenario but, it is exceptionally rare that we ever see that best case develop. This is a lesson that I had to learn myself as a sales manager. In the construction industry, over-forecasting can lead to a number of calamitous outcomes. Think back to late 2013. Several industry analysts were calling for a dramatic spike in housing starts for 2014Read More
Caroline Massie / ARCHITECT / August 12, 2015
While compensation gains since 2013 are modest, they have outpaced low inflation levels in the U.S., the biannual report reveals.
Yesterday, the AIA released its biannual Compensation Survey, which provides salary data at U.S. architecture firms. The report reveals that average compensation for staff positions rose 3.5 percent since early 2013 (or 1.75 percent per year), with increases for the major architectural staff categories, which include senior design and project management staff; architects and designers; and interns.
The AIA reports that the compensation gains are modest,Read More
Robert Dietz / NAHB / August 12, 2015
The NAHB’s Robert Dietz reports on the latest Bureau of Labor Statistics data that shows construction job openings fell in June, decreasing from 163,000 in May to 143,000 in June. While the number of unfilled jobs in the sector remains high, the open position rate declined to 2.3%.
The June construction sector hiring rate, as measured on a three-month moving average basis, ticked up to 5.2% after a period of declines that began in March. The quits rate for construction declined slightly to 1.7% in June.
The total employment for the building and remodeling industry currently sits
Heather Taylor / NAHB / 8/4/2015
The NAHB’s Heather Taylor dives into data from HUD’s American Housing Survey which provides insight into buyer preferences when selecting a home.
The top reasons for choosing a home were size, cited by 76% of all buyers, followed by room layout/design (74%) and a two-way tie between price and neighborhood (72%). But digging deeper, those priorities vary among buyers looking for new homes compared to those shopping for existing homes:
For buyers of new homes, room layout/design, neighborhood, exterior appearance and construction quality tended to be even more important
BUILDER / August 4, 2015
The nesting habits of millennials are a source of much conjecture in the housing industry. BUILDER pulled together the nine top-line takeaways from the Urban Land Institute’s recent report “Gen Y and Housing: What They Want and Where They Want It.”
Read more on BUILDER.com.
David Crowe / BUILDER / July 21, 2015
The new-home sales market is greatly dependent on the existing-home sales market. Currently, at least 80% of new homes are purchased by buyers who sold an existing home. In better times, when the first-time buyer is more active, repeat buyers’ share could sink to 65% to 70%—still a substantial portion of sales.
The modest housing recovery has slowed existing homeowners’ normal turnover; or existing homeowners’ reluctance has slowed the housing recovery. The cause and effect are difficult to separate although several contributing factors are identifiable.