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.
Les Shaver / BUILDER / November 7, 2014
By almost any standard, 2014 has been a disappointment for home builders. As of October, starts were up only 2 percent compared with 2013; sales volume rose about 7 percent; and home prices ticked up roughly 5 percent, according to Metrostudy.
On the surface, home builders looked like the victims of these trends, but Dave Goldberg, an analyst for UBS in New York, thinks they also played an active role in their own loss of momentum. Aside from some moves like Miami-based Lennar Corp.’s increasing realtor sales commissions and Fort Worth, Texas–based D.R. Horton’s push into the entry-levelRead More
New-home sales in August reached the highest annualized pace since 2008. But many builders and economists still expect sales for this year to underwhelm, ultimately either matching or only slightly exceeding last year’s level.
The reason lies in the difference between the volatility of monthly home-sales figures from the Commerce Department and the underlying trajectory of the market established over the past year. The latter shows a pace, on average, of sluggish but steady growth.
Meanwhile, the frothy gain in August new-home sales reported Wednesday by the Commerce Department canRead More
Michael Neal / NHAB / October 3, 2013
Today, NAHB hosted its Fall Construction Forecast Webinar (CFW) featuring three renowned industry experts. NAHB Chief Economist David Crowe was joined by Mark Zandi, Chief Economist at Moody’s Analytics, and NAHB Senior Economist Robert Denk to present views on the outlook for the US economy and the housing market more specifically.
Here are the major points from today’s presentation:
David Crowe, Chief Economist at NAHB, noted that economic growth is expected to accelerate over the coming years and recent growth has reflected improvement in the housing market. At the same time, employmentRead More
Nick Timiraos / The Wall Street Journal / October 1, 2013
Fear that the housing market’s recovery is stalling has been overdone, say economists at Goldman Sachs in a new report.
The paper — entitled “Where is the pent-up housing demand?” — suggests that housing demand among the young has been suppressed due to cyclical issues not structural ones.
Homeownership hasn’t fallen out of favor and student-debt levels aren’t the main culprits for lower housing demand among young buyers, write economists Hui Shan and Eli Hackel. Instead, they suggest that the economic downturn is most responsible for muted homeownership gains among youngerRead More
Diana Olick / CNBC / October 1, 2013
The fight may be in Washington, but the effects of the government shutdown will ripple through every neighborhood in America—without a fully functioning government, an already tight mortgage market may become even more prohibitive. It is exactly what the housing recovery does not need.
“This is going to be very disruptive to the mortgage industry and pretty much result in a freeze of the pipeline,” said Craig Strent, CEO of Bethesda, Md.-based Apex Home Loans. “New loans can be taken, but without IRS and Social Security number verifications, [they] will not be able toRead More