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.
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.
Our more detailed insightsRead More
William D. Cohan / The Atlantic / September 19, 2013
The Blackstone Group and other members of the fast-money crowd have a risky new strategy for investing in real estate—this time as landlords.
For more than a generation now, like it or not, Wall Street’s financial engineering has helped determine whether the average American can buy a home. Once upon a time—before Wall Street stuck its nose under the mortgage tent—the formula for homeownership was pretty simple: if the neighborhood banker thought you would pay it back, you had a pretty good chance of getting a 30-year mortgage. The local touch gave both parties the incentive
Robert Dietz / NAHB / September 23, 2013
While the sources of finance for new home sales have changed noticeably since the start of the Great Recession, cash sales remain more common for existing homes compared to new construction.
According to data from the Census Bureau’s Quarterly Sales by Price and Financing, the onset of the housing crisis in 2007 led to a decline in the share of new home sales due to conventional mortgage financing and increases in the shares due to mortgages backed by the Federal Housing Administration (FHA) and the Department of Veteran’s Affairs (VA), as well as cash purchases.
For the second quarterRead More