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.
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
Charlotte O'Malley / BUILDER / September 30, 2013
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According to Metrostudy’s active new home survey data, the five fastest-growing metros have experienced over 10,000 new home starts. As Metrostudy points out in their blogpost “A Housing Dimension to Forbes’ Recent Projection,” it’s noteworthy that the top three markets experiencing new home growth are included in a recent Forbes article listing top markets for expected job growth annually. Here are the markets that overlap:Read More
Rocio Sanchez-Moyano / Harvard Joint Center for Housing Studies / September 26, 2013
With the continued growth of house prices across the country, talk of a housing bubble is beginning to reappear in the headlines. House price-to-income ratios are often used to indicate a bubble, as prices have historically had a relatively stable relationship with incomes (both mean and median). In the US, nationally, the price-to-income ratio remained relatively stable throughout the 1990s. It began to increase around 2000 and surpassed its long-run average of 3.65 by 2002 (Figure 1). The national price-to-income ratio continued to increase in the mid-2000s, reaching a high ofRead More
Jonathan Smoke / Hanley Wood / September 25, 2013
The headline from the Commerce Department report on new home sales this morning was that August delivered a 7.9% increase over July. The Commerce Department numbers for August surprised analysts just like the existing home sales data last week because it seems that many folks have bought into the idea that rising interest rates are choking off the nascent housing recovery. Once again I stand by the opinion that no conclusive data exist that show we are seeing sales decline. The only declines we are seeing consistently are typical seasonal declines in activity.
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