January 28th, 2015
New Home Sales in 2015
There is a pretty strong consensus among economists and Real Estate Industry experts that new home sales in 2015 are expected to rise 25%. This will be the best year for new home sales since 2007.
This number is very encouraging, representing approximately 820,000 new home starts in 2015, but it is still below the 1 million historical average.
What is holding back new home construction?
- Lending – both to home buyers and builders
- Millennial student debt holding back first time home buyers
- Builders have not expanded their land positions to more peripheral areas
What will boost new home construction in 2015?
- Strong economic recovery
- Improving Labor market
- Low inventory levels in resale
December 15th, 2014
Thinking about building a new home in a different ZIP code from where you currently live? Check out a new tool by Esri that, if nothing else, is fun to browse as you consider the ZIP code your new home may be built in. Esri is a geographic information firm who has created a new interactive map which mines socioeconomic and demographic data to create a picture of who lives in each ZIP code. Esri’s “Tapestry Segmentation” database uses 67 neighborhood classifications, complete with cutesy names like “American Dreamers”, “Front Porches” and “Top Tier”. The data lets you look into the stereotypical lives of residents in the ZIP code, including their average income, age, and population.
How much truth there is in these broad characterizations is questionable. Does an entire ZIP code really listen to the same type of radio? According to my ZIP code, there’s supposedly a lot of Soccer Moms residing here, which I have to say is pretty accurate based on the number of minivans with soccer ball stickers on their rear windows! Some of the other traits may or may not truly represent ME personally and could be too generalized.
Yet, as I sampled through some other ZIP codes that I am familiar with, I was surprised at how accurate much of the information appeared to be in terms of a general representation. It was an interesting tool to play around with for a while, and does help me gain a better understanding (if not somewhat subjectively) of the different areas in my city. Check it out at:
December 8th, 2014
TIS THE SEASON!
SAVE – The continued improvement in the single-family market supports the expectation of more and stronger growth in 2015 as consumers gain confidence in their economic futures, mortgage rates remain very low by historic standards and home prices continue to be affordable to those with good credit and a solid employment history. Once again,…the new construction product is far superior than the average re-sale and with our drastic weather challenges we are experiencing will support the$AVINGS in utility costs.
The Real Estate industry feels the natural ebb and flow of sales due to the holiday seasons. Other than calendar/holiday indicators there are other factors we all experience in pricing and affordability across the nation.
Examples of seasonal effects include a July drop in automobile production as factories retool for new models and increases in heating oil production during September in anticipation of the winter heating season.
GAIN MOMENTUM-Off- season dealing: Sellers in late fall and early winter, especially between Thanksgiving and New Year’s Day, are often more motivated to deal, real estate agents say. “I’ve done my best negotiating from October to December,” says Jim Crawford, a real estate agent, lecturer and Web consultant in Roswell, Ga. “Families don’t want lots of people tromping through your home around Christmas time … so you’re more apt to accept an offer and MOVE ON.”
WIN – While most are sleeping and slowing down,… you are preparing for the momentum, ramping up, outperforming the competition and winning!