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DataDigest: What the latest data says about home prices, construction and sales

Housing Wire

Cutting prices is one of several mechanisms homebuilders have employed to keep buyers interested since rates began skyrocketing. Home construction New home construction ramped up early in the pandemic but moderated as interest rates ticked up and mortgage rates followed.

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Zonda announces major business acquisition

Housing Wire

By extension, Zonda also acquired NewHomeSource.com , one of the largest listings platforms for newly constructed homes, and Envision , a new home design platform. Founded in 2000, BDX is owned by a group of 24 leading U.S. Zonda will be able to integrate its new construction data and tech platform with the leading portal for U.S.

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Homebuilders are feeling pretty good right now

Housing Wire

The NAHB/HMI report is based on a monthly survey of NAHB members, in which homebuilders are asked to rate both current market conditions for the sale of new homes and expected conditions for the next six months, as well as traffic of prospective buyers of new homes. That share from 2000-2019 was a 12.7%

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Where’s the bottom for new home sales?

Housing Wire

New home sales are now below the recession levels of 2000 and have fallen all the way to 1996 levels, when interest rates were near 8%. The builders will pull back on construction when the supply is 6.5 When rates rose back in March, there was a considerable risk to the business model with many homes under construction.

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The new home sales recession continues

Housing Wire

So for now, the builders will take their time with the homes under construction and make sure they offer enough incentives to unload the new home supply they’re dealing with. This is below the recession levels of 2000 and back to 1996 levels. This time, we have less production of homes and more multifamily construction.

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The housing market recession continues, despite starts data

Housing Wire

From the National Association of Home Builders : Looking at the housing starts report, the numbers came in slightly better than anticipated, driven by multifamily construction. Still, it’s backward-looking and the growth in multifamily construction, which we desperately need to cool down rental inflation, has recently been positive.

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The big short in housing supply isn’t going away

Housing Wire

Homebuilders responded to the shortage of homes for sale, accelerating new home construction, even as they face severe supply-side challenges, including rising building material costs and supply-chain bottlenecks, a lack of affordable lots, and difficulty in finding skilled labor. What about existing homes?