Property Mangement Archives

Buyers Say They Had To Compromise On Wish List

Buying a house means setting priorities. More than likely, you won’t find one that checks off every single item on your wish list. So you’re going to have to prioritize and choose which features are most important to you and which you can live without. You’re also going to have to compromise. According to one recent survey, most home buyers do. In fact, the survey found 80 percent of recent home buyers said they had to compromise on their priorities. That means giving up something that made their wish list and buying a house that had most, but not all, of their desired features. For example, among survey respondents who compromised, 20 percent said they settled on neighborhood and bought in an area that wasn’t their top choice. But despite the vast majority of recent buyers saying they made compromises, their top regrets weren’t about features they had to do without. In fact, recent buyers said their biggest regrets were spending too much and buying too quickly, both common problems during last year’s frenzied market. (source)

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Housing Starts Slow As Completions Rise

The U.S. Census Bureau and the Department of Housing and Urban Development’s monthly New Residential Construction report tracks the number of new homes that began construction during the month, the number of homes that were finished, and how many building permits were authorized. In July, the report found the number of housing starts down significantly from the month before. In fact, the number of new homes that began construction In July fell 9.6 percent. But while some of that decline is due to slower demand from home buyers, a closer look at the housing completions numbers tells the other half of the story. Put simply, home builders have a lot of homes in the pipeline. Backed up by labor shortages and supply issues, builders are playing catch up right now. That’s why, despite falling housing starts, completions actually rose in July. Housing completions were up 1.1 percent from the month before and 3.5 percent higher than last year at the same time. That means, at least part of July’s slowdown was caused by home builders finishing the homes that had already begun construction. (source)

Hammers

Which Areas Are Most Popular With Buyers?

Home buyer preferences are usually pretty consistent. What home shoppers are looking for in a house or neighborhood doesn’t change all that much from year to year. But, while that’s typically true, the pandemic caused a shift in what buyers are looking for and, two years after its initial onset, the effects are becoming more clear. One recent example can be seen in an analysis of home-price growth and inventory levels in more than 1,000 cities nationwide. The analysis – which aimed to pinpoint the country’s most popular markets – found that all of the top 10 most popular areas were suburban locations about a half-hour from the nearest city center. That’s a change from the pre-pandemic era when urban areas saw faster price growth and higher demand than neighborhoods outside cities. The reason for the shift is fairly easy to see. The pandemic led to an increase in remote work, and with more Americans able to work from home, buyers began looking to live further from city centers, where they could have more space and privacy. (source)

House

Outlook Sees Home Price Growth Slowing

Affordability is a hot topic these days. After two years of rapid home price growth and the recent spike in mortgage rates, prospective home buyers are increasingly wondering about the cost. That’s natural. When affordability conditions change quickly, it can lead to uncertainty. So what should home buyers expect in the coming months? Fannie Mae’s Economic and Strategic Research Group has answers. According to their latest outlook, the group believes the housing market is headed for a slowdown in sales and construction activity. That’s to be expected, especially while rates are rising. “Historically, rapid and substantial rises in mortgage rates have had the effect of slowing activity, which we reflect in our forecast,” Doug Duncan, Fannie Mae’s senior vice president and chief economist, says. But a slower market should also bring slower price growth – which could help offset higher rates. Recent price increases have largely been driven by a supply imbalance. More buyers than available homes has led to surging prices. When the market slows, and fewer buyers are active in the market, home prices should finally begin to calm down. (source)

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Nearly 60% Of Americans Say Now’s The Time To Buy

Each month, Fannie Mae’s Home Purchase Sentiment Index surveys Americans to measure interest in home buying and selling. The index looks at how people view the housing market, home prices, mortgage rates, their jobs, income, and expectations for the future. In February, the HPSI was relatively flat from the month before but remained near all-time highs. In fact, the survey found 59 percent of Americans believe now is a good time to buy a house and 67 percent say it’s a good time to sell. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the housing market has started the year off strong. “The HPSI remained relatively steady in February, reflecting another month of robust consumer sentiment consistent with strong housing market data to start the year,” Duncan said. “In particular, household income sentiment picked back up as more workers saw their wages rise amid tight labor market conditions, helping bolster already strong housing demand.” However, though Americans are optimistic about the housing market and economy, Duncan warns that February’s results don’t yet account for the potential economic impact of the coronavirus, which could affect future survey results. (source)

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