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.
Metrostudy News / November 12, 2013
2013 marches on with continued optimism, albeit perhaps slightly more cautiously so than in quarters past, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
Northern California Annual Housing starts are UP 62% from 3Q12, while closings are UP 45%. Quarterly new home closings are UP 27% from 3Q12. The annual start pace is at the highest level since 2Q08 and the annual closing rate is nearly as high as 3Q10. Closings have been outpacing starts forRead More
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
David Crowe / NAHB / August 29, 2013
New home sales have shifted from purchasing completed homes in inventory to purchasing homes still under construction and even homes not-yet-started. The shift is a product of several trends.
Eight-in-ten new home buyers already own a home and have often refined their choices to the point where the current inventory does not fit their needs. A completed home does not allow for individual choices in upgrades, finishes and colors.
Builders slowed starting new homes and sold inventory to reduce their overhead, often at the lender’s insistence. As a result, the number of for sale completedRead More
John McManus / BUILDER / August 26, 2013
From Friday’s Census Bureau release of new-home sales data, mainstream business media outlets and Wall Street analysts have drawn the conclusion that post-Fed quantitative easing interest rate spikes are killing the newborn housing rebound. Even within home building and development’s community, there are two distinct camps: one that says interest rates are sucking the mojo out of recovery; and one that says recovery’s taking on a life of its own that will trump interest rates. PULSE weighs in with 9 things home builders and their business, capital, and trade partnersRead More
Jonathan Smoke / Hanley Wood / August 23, 2013
The Commerce Department reported the first read of July new home sales this morning with a headline of a month-over-month 13.4 percent decline. The July number came in at 394,000, compared to the revised June reading of 455,000. Economists had been expecting a reading of 487,000, which would have been a 2 percent decline from the original June number of 497,000. Despite the eye-popping decline, the month-to-month change was not statistically significant, meaning that we should generally view the monthly trend as unchanged.
What is going on with these numbers? The Commerce DepartmentRead More