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Elevated borrowing costs remain the top worry for homebuilders

Housing Wire

Additionally, the competition from existing home sellers was somewhat absent. single-family homes for sale were new construction, similar to the percentage from a year earlier and good for the highest level of any fourth quarter on record. In 2011, only 13% of homebuilders worried about the cost of labor, versus 87% in 2019.

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Homebuyers increasingly seek ARMs as mortgage rates soar 

Housing Wire

Buyers, builders and sellers take a step back as inflation persists . On the heels of heightened mortgage rates and persistent inflation, buyers, builders and sellers have taken a step back to consider their best course of action. Sellers are responding to the shift in the market and pulling back on listing activity, resulting in a 9.8%

Mortgage 395
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Existing home sales are working from a historic low bar

Housing Wire

To give you all some perspective, this data line dropped all the way to 14 days in the crazy period of COVID-19, while back in 2011, it was 105 days. This is a positive for housing in 2024 as most sellers are buyers. This is related to the fact that even though the apartment boom is over, single-family permits are still rising.

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Purchase apps are at 2009 level: where’s the inventory?

Housing Wire

However, the spike in inventory that we saw from 2006 to 2011 can be attributed to the massive credit bubble we had from 2002 to 2005. These two factors were happening from 2006 to 2011 and added supply to the market. We have more housing starts under construction now than in recent history! What about the builders?

Inventory 495
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Homes in Boise, Idaho are “flying off the market”

Housing Wire

Notably, in 2011, existing home prices in Ada County were at $160,113. They bid $750,000 and again at $775,000, which the seller said would work. New construction continues to take more and more of our market,” Dopp said. New construction used to be maybe 15-20% of the market, trending toward 40% of the market now.

Marketing 531
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Japanese luxury-home developer plans U.S. IPO

Housing Wire

It launched an interactive media platform as well in the fall of 2021, called Glocaly, which serves as a listing and marketing exchange for matching sellers and buyers of condos. The design and construction of the luxury properties is outsourced to third parties.

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Are new home sales flagging a recession?

Housing Wire

I know some people don’t agree with me on this, but the price gains in both the existing home and new home sales sector show that homebuilders and sellers had too much pricing power and needed to be checked. months and above, the builders will pull back on construction. The only time this has happened was the 2006-2011 period.