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.
David Crowe / NAHB / July 25, 2013
Economic and housing data continue to describe a modest recovery for housing that will lead to higher levels of construction activity in the years ahead. While some recent information illustrates that there will be ups and downs along the way, current fundamentals indicate rising demand and insufficient housing inventory.
Mortgage interest rates have risen, but thus far there is no evidence to suggest that these increases have changed the overall improving trend for housing. Qualifying for a mortgage, including accumulating the necessary downpayment, remains a larger challenge forRead More
Brad Hunter, chief economist / Metrostudy / July 24, 2013
Today’s New Home Sales figure confirmed that demand is staying strong in spite of higher mortgage rates. Sales of new single-family homes rose 8.3% for the month, and 38.1% compared with one year ago.
The story on higher mortgage rates is a “tale of two buyers.” The entry-level buyer has pulled back somewhat, but the move-up buyer has found a new sense of urgency to buy, to beat further increases in mortgage rates and further price hikes.
Household formation rates continue to rise, and that is fueling new home demand. Early readings of our new 2nd quarter data show positive readingsRead More
Jonathan Smoke / Hanley Wood / July 24, 2013
The Commerce Department reports their first read on June new home sales later today. Economists are expecting to see a slight increase of 2% in the seasonally adjusted annual rate of new home sales. Like their reporting on permits and starts, this series is based on a relatively small survey of builders and so it often results in month to month changes that are not statistically significant and the data are also subject to significant revisions.
If the number fails to meet expectations, expect the market commentary to focus on the impact on higher mortgage rates that started rising at the endRead More
Jonathan Smoke / Hanley Wood / June 25, 2013
Hanley Wood chief economist Jonathan Smoke’s commentary on Spring Sales, Prices, and Consumer Confidence
Today is a big day for getting a read on how housing demand has been unfolding as preliminary May numbers on new home sales were reported by the Commerce Department, Case-Shiller released April home price indices, and the Conference Board released June consumer confidence data. Interpreting each of these data points bears caution as these monthly metrics can be somewhat volatile and are subject to revisions, but when we look at these numbers and our own research we see severalRead More
Teresa Burney / BUILDER / April 25, 2013
Happy resident testimonials and glimpses of the “good life” help sell homes to older buyers.
The home shoppers thought they were coming to see the model homes in Traditions of America’s 50-plus Silver Spring and Liberty Hill communities last April, but what the builder really wanted to show off was the communities’ lifestyle and happy residents.
So every time the shoppers opened the door of one of the model homes in the builder’s Pennsylvania communities’ “Live Better Now” events, they were greeted by a current homeowner and member of one of Traditions of America’sRead More