National Outlook

Lot Supply Isn’t the Problem, It’s the Solution

For the last several years, cities across the country have been struggling with housing and lot supplies. Could one of the biggest problems become part of the solution? Lot inventory over the last several years has actually declined in most parts of the country and in some areas has even fallen levels not seen since the housing boom days. The supply that remains, while not all of it is high qualit …

Punxsutawney Phil predicts early spring…let’s start building!

Punxsutawney Phil not only predicted an early spring for the US, but was also overheard mentioning something about an early housing recovery across Minneapolis/St. Paul…  While Phil declined to elaborate more on his housing projections, leaving us all with questions, early numbers suggest he could be on to something… In case you missed it, February 2nd was Groundhog Day, and for just the 16th time …

“What to do about ‘Under Water’ mortgages”.

There is a lot of noise out in the economy about all of the mortgages that are “under water” and about the need for the government to do something about that. People seem to think that, if the balance due on the mortgage were somehow magically reduced, the economy would be just fine. Well, that is not quite how it works. First of all, a home is not a commodity that is bought and sold on speculatio …

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Local View

RALEIGH-DURHAM HOUSING 4Q16: Double-Digit Gains in Fourth Quarter; Continued Growth Expected in 2017

4Q16 Quarterly New Home Starts Up 15.3% & Quarterly Closings Up 9.4% YoY; Annual Starts Up 12.6% & Annual Closings Up 5% YoY. Homes priced between $300K and $399K continued to lead the market, up 39% YoY. In 2016, Triangle developers delivered 11.5% more lots than in 2015 – yet the current development timeline is significantly longer than normal due to major capacity constraints. Metrostud …

PHOENIX HOUSING 4Q16: 2016 Market Strength Should Continue into 2017

Annual New Home Starts are up 12% YoY; Annual Closings in 2016 were up 29% for the strongest annual closings performance in four years. Despite recent price gains, housing affordability remains high compared to nearby California, which will continue to drive housing demand from out of state home buyers The Phoenix market median home price experienced a 10% increase compared to the previous year. L …

SAN FRANCISCO BAY AREA HOUSING 4Q16: Affordability Limits are being pushed – Lot Shortages inhibit future growth

Annual New Home Starts in the San Francisco Bay Area are down 8% from 2015 Levels Prices continue to soar: Start activity has increased in the price ranges
above $800K as builders adjust pricing based on increased demand and higher lot costs; 26% of new home starts this quarter are priced above $1 million While job growth is strong in the Bay Area, the overall cost of home ownership is outpacing h …

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