October 2024 - Page 4 of 4 - Hillwood Loves Realtor

Get the Data You Need To Reach Your Real Estate Goals

Texas REALTORS Staff2024-10-08T01:23:42-05:00

Data is king when making big financial decisions. That’s why it’s essential to know recent prices, current market trends, and related data when you’re buying, selling, or renting property. Who has access to that type of information? Your REALTOR®. Just as important, your REALTOR® can help you understand what the numbers and trends mean for you. Relevant Data For Your Transaction REALTORS® can pull the most recent sales in a neighborhood to help buyers and sellers know market conditions. They can show you what prices and rents have been doing over time to inform your decisions. REALTORS® can show you the big picture—is it a buyer’s market in your area?—and the hyperlocal picture—what are properties on that street selling for? Accurate And Reliable An internet search will give you plenty of sites claiming to provide home prices in an area, the number of properties sold, days on market, housing inventory, etc. But how do you know if those numbers are accurate or recent? Thankfully, your REALTOR® has access to the most accurate, reliable data. Plus, your REALTOR® will filter out the noise, showing only what matters to you and your goal. Interpreted For Your Situation Not only can REALTORS® provide the data, but they can also explain how it affects your transaction. It doesn’t do any good to know what a property sold for if you don’t know if that should affect the price of your listing or your offer for that house. Factors such as precise location, home features, and condition all affect what a home is worth. Work with a REALTOR® so you understand your market and avoid big mistakes when you buy, sell, or lease property.

Get the Data You Need To Reach Your Real Estate GoalsTexas REALTORS Staff2024-10-08T01:23:42-05:00

Manufactured Homes: Shipments, Prices, and Characteristics in 2023

Catherine Koh2024-10-07T09:17:15-05:00

New manufactured homes saw a decline in shipments in 2023 compared to the previous year. According to the Manufactured Housing Survey (MHS), 89,169 manufactured homes were shipped in 2023, a decrease of 21% from the 112,882 homes shipped in 2022. The Census defines a manufactured home as a movable dwelling, 8 feet or more wide and 40 feet or more long, designed to be towed on its own chassis, with transportation gear integral to the unit when it leaves the factory, and without need of a permanent foundation. No building permit is required for a manufactured home. Despite the 2023 decline, the ratio of shipments to new single-family site-built home construction starts remained consistent between 1 to 9 and 1 to 10. In 2023, that number was 1 to 10, meaning that for every new manufactured home shipped, 10 new single-family site-built homes started construction. Of the total 2023 shipments, 35.7% (31,830 homes) were either sold or leased, while 2022 saw 46,696 (49%) being sold or leased. Regionally, the South continued to receive the majority of shipments at 66%. The Midwest followed with 14%, the West with 11%, and the Northeast with 6%. Texas remained the leading state for shipments, accounting for 15,073 homes, which represents 17% of the total. Altogether, the top ten states comprised over 60% of the shipment share, highlighting a concentrated market presence. Breaking down the types of manufactured homes shipped, 45% were single-section units. These homes had an average sales price of $84,800 and an average area of 1,038 square feet, translating to a price of $81.70 per square foot. In contrast, 54% of the shipments were multi-section homes, with an average sales price of $154,100 and a larger area of 1,748 square feet, equating to $88.16 per square foot. When compared to new single-family site-built homes started in 2023, which had an average price of $165.94 per square foot (excluding land value), multi-section manufactured homes are approximately 1.9 times less expensive per square foot. Out of the total homes shipped, 70% (59,950 homes) were placed at their final destinations. Among the placed homes, 21% were titled as real estate property, while the majority, 76%, were classified as personal property. Additionally, only 29% of the placed homes were situated within a manufactured housing community. Census doesn’t have an official definition of a manufactured housing community, but as an example of the industry’s term of art, Law Insider defines it as “any area where two or more manufactured home lots are leased specifically for the use of manufactured homes”. Looking into other characteristics of placed manufactured homes, over half (57%) had concrete footings. Pressure-treated wood and monolithic-slab foundations comprised 12% each, and basement or crawl space foundations was 4%. For homes not placed on concrete or slab foundations, the most common type of pier is concrete block (77%) while the majority (84%) were secured using anchors and tie-down straps, and 11% utilizing anchors and alternative foundations. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Manufactured Homes: Shipments, Prices, and Characteristics in 2023Catherine Koh2024-10-07T09:17:15-05:00

Home Buyers Want Technology to Improve Energy Efficiency and Increase Safety

Eric Lynch2024-10-07T07:24:08-05:00

NAHB published research earlier this year on home buyer preferences called What Home Buyers Really Want1. Consumers were asked to rate how 19 technology features would influence their home purchase decision, if at all, using the following four-point scale: Do not want – not likely to buy a home with this design or feature. Indifferent – wouldn’t influence decision. Desirable – would be seriously influenced to purchase a home because this design or feature was included. Essential/Must have – unlikely to purchase a home without this design or feature Seventy-eight percent of home buyers rated a programmable thermostat as either essential/must have or desirable, followed by security cameras (76%), video doorbell (74%), and wireless home security system (70%). Sixteen of the 19 technology features had at least 50% of home buyers rating them as essential or desirable. The top eight features reveal that home buyers are looking for technology that helps them achieve two main goals: Improve Energy Efficiency (programmable thermostat, multi-zone HVAC system, lighting control system, energy management system/display) AND Increase Safety (security cameras, video doorbell, wireless & wired home security system) Additionally, like the other areas of the home covered in the study, every question on technology features is tabulated by the buyer’s income, age, geography, race, household type, and the price they expect to pay for the home. These details can be very useful in particular cases. For example, the study discusses the five technology features that have the largest preference margins between the youngest and oldest buyers along with analyzing the prevalence of virtual tours by income and price point. What Home Buyers Really Want, 2024 Edition sheds light on the housing preferences of the typical home buyer and is based on a national survey of more than 3,000 recent and prospective home buyers. Every question in the survey’s extensive twelve-page questionnaire is tabulated by the buyer’s income, age, geography, race, household type, and price they expect to pay for the home. For readers interested in more detail on kitchens and baths, or other aspects of the home, the full study is available at BuilderBooks.com. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Home Buyers Want Technology to Improve Energy Efficiency and Increase SafetyEric Lynch2024-10-07T07:24:08-05:00

Strong Job Market in September

Jing Fu2024-10-04T11:28:08-05:00

The September jobs report indicates that the U.S. labor market remains strong. Job growth accelerated, and the unemployment rate fell to a three-month low of 4.1%. Meanwhile, job growth for the previous two months (July and August) was upwardly revised. In September, wage growth accelerated for the second straight month. Wages grew at a 4.0% year-over-year (YOY) growth rate in September, down 0.5 percentage points from a year ago. Wage growth is outpacing inflation, which typically occurs as productivity increases. National Employment Total nonfarm payroll employment increased by 254,000 in September, following an upwardly revised increase of 159,000 jobs in August, as reported in the Employment Situation Summary. It marks the largest monthly job gain in the past six months. The estimates for the previous two months were revised higher. The monthly change in total nonfarm payroll employment for July was revised up by 55,000, from +89,000 to +144,000, while the change for August was revised up by 17,000 from +142,000 to +159,000. Combined, the revisions were 72,000 higher than previously reported. In the first nine months of 2024, 1,801,000 jobs were created. Additionally, monthly employment growth averaged 200,000 per month, compared with the 251,000 monthly average gain for 2023. The Fed’s easing cycle began on September 18, marking the end of a period of restrictive monetary policy. The U.S. economy has created roughly 8 million jobs since March 2022, when the Fed enacted the first interest rate hike of this cycle. The unemployment rate fell slightly to 4.1% in September, from 4.2% in August. The September decrease in the unemployment rate reflected the decrease in the number of persons unemployed (-281,000) and the increase in the number of persons employed (+430,000). Meanwhile, the labor force participation rate—the proportion of the population either looking for a job or already holding a job—was 62.7% for the third consecutive month. However, for people aged between 25 and 54, the participation rate dipped slightly to 83.8%. This rate exceeds the pre-pandemic level of 83.1%. Meanwhile, the overall labor force participation rate is still below its pre-pandemic levels when it stood at 63.3% at the beginning of 2020. In September, employment continued to trend up in food services and drinking places (+69,000), health care (+45,000), government (+31,000), social assistance (+27,000), and construction (+25,000). Construction Employment Job gains in the overall construction sector continued in September, averaging 20,000 per month over the past 12 months. While residential construction gained 7,800 jobs, non-residential construction employment added 17,900 jobs for the month. Residential construction employment now stands at 3.4 million in September, broken down as 952,000 builders and 2.4 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 3,450 a month. Over the last 12 months, home builders and remodelers added 60,500 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,393,800 positions. In September, the unemployment rate for construction workers rose to 4.9% on a seasonally adjusted basis. The unemployment rate for construction workers has remained at a relatively lower level, after reaching 15.3% in April 2020 due to the housing demand impact of the COVID-19 pandemic. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Strong Job Market in SeptemberJing Fu2024-10-04T11:28:08-05:00

Parking Garages for New Homes 2023

Catherine Koh2024-10-04T09:20:25-05:00

In 2023, 66% of newly completed single-family homes featured two-car garages, according to NAHB’s analysis of the Census’s Survey of Construction data. This was the most common parking option across all Census divisions. By Census division, South Atlantic had the highest share of two-car garages at 72%. Three or more car garages were most popular in the West North Central division (38%), while one-car garages were most frequent in the Middle Atlantic division (22%).”Other” parking options, including carports and off-street parking, were most common in the East South Central division (17%). Nationwide, the share of new homes with three or more car garages was 17% in 2023. Three or more car garages have been trending downward since the peak of 24% in 2015, decreasing 2% from 2022. One-car garages were present in 8% of new homes, another 2% possessed a carport, and 8% did not have any garage or carport. As home size increased, the share of homes with one-car garages or “other” parking options decreased. For homes under 1,200 square feet, “other” parking options were most common (72%). As home sizes go over 5,000 square feet, this share drops to just 2%. One-car garages were most common in homes between 1,200 and 1,599 square feet (18%), while only 1% of homes over 5,000 square feet had this feature. Two-car garages were most prevalent in homes between 1,600 and 1,999 square feet (72%), with the largest share at 81% for homes between 2,000 and 2,399 square feet. For homes between 2,400-2,999 square feet, the two-car garage share fell to 77%. Two-car garages were also the most popular options for homes 3,000-4,999 square feet as well with a smaller share at 58%. Three-car garages were rare in smaller homes (3% for those under 1,200 square feet) but became the most common option (65%) for homes over 5,000 square feet. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Parking Garages for New Homes 2023Catherine Koh2024-10-04T09:20:25-05:00

State of Local Homeownership Prior to the Election

Natalia Siniavskaia2024-10-03T12:14:46-05:00

With housing being a key issue for the 2024 election cycle, it is worth analyzing distinct characteristics as well as similarities that housing markets in congressional districts share. The differences start with a substantial variation in homeownership rates across congressional districts. While the 2023 American Community Survey (ACS) reports that close to two thirds of US households (65.2%) are home owners, there are forty congressional districts where renter households represent the majority. In twelve of these districts, renters account for more than two thirds of households. This list includes eight urban high-density congressional districts in New York, three districts in California and New Jersey’s 8th congressional district. The pattern of urban congressional districts registering lower home ownership rates repeats across the country. At the other end of the spectrum, there are seven congressional districts with home owners representing over 80% of households. These include three districts in Michigan, two in New York, and one in both Maryland, and Minnesota. New York stands out with simultaneous congressional districts with the lowest and second highest homeownership rates. Close to 84% of households in New York’s 1st district located in eastern Long Island are home owners. The only other congressional district that registers a higher homeownership rate is Michigan’s 9th congressional district located in the Thumb at 85%. In contrast, in New York’s urban 13th and 15th districts, home owners comprise a minority of less than 16% and 13%, respectively. California is another example of substantial variation of homeownership rates across congressional districts within a state. In California’s 41st district in Riverside County, 3 out of 4 households are home owners. At the same time, in California’s 34th district in the city of Los Angeles, only 22% of households live in a home they own. Population density, racial and ethnical makeup, as well as varying cost of ownership, all contribute to substantial variation in homeownership rates across the US congressional districts. Additional housing data for your congressional district are provided by the US Census Bureau here. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

State of Local Homeownership Prior to the ElectionNatalia Siniavskaia2024-10-03T12:14:46-05:00

Two-Story Foyer Trend Declines in 2023

Fan-Yu Kuo2024-10-03T10:15:08-05:00

In 2023, a quarter of new homes were built with a two-story foyer, down slightly from 26% in 2022, according to data obtained from the Census Bureau’s Survey of Construction (SOC) and tabulated by NAHB. The market share of two-story foyers has been generally trending downward over the past seven years, with most new single-family homes being built without a two-story foyer nationally and regionally. According to the Census, a two-story foyer is defined as the entranceway inside the front door of a house and has a ceiling that is at the level of the second-floor ceiling. In the United States, the share of new homes with two-story foyers fell from 26% to 25% in 2023, closer to the low level seen in 2021. This feature is often considered energy-inefficient and is seen as undesirable by both builders and buyers. The declining trend is in line with NAHB’s What Home Buyer’s Really Want, in which recent and prospective buyers rated their preference for 18 specialty rooms. The study found that two-story entry foyers was one of the least desired specialty rooms, with 32% buyers likely to reject a potential home with this feature, and only 13% seeing it as an essential/must-have feature. Regionally, the share declined in five of the nine divisions. The decline was particularly pronounced in West South Central and New England, reversing the notable increases seen in 2022. In both divisions, the shares have now returned closer to their 2021 levels. The Middle Atlantic and West North Central were the only two divisions to see an increase in the share of two-story foyers from 2022 to 2023, with both shares reaching their highest levels since 2017. Meanwhile, shares in the South Atlantic and Pacific remained unchanged in 2023. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Two-Story Foyer Trend Declines in 2023Fan-Yu Kuo2024-10-03T10:15:08-05:00

Refinancing Activity Continues to Climb in September

Catherine Koh2024-10-02T11:16:02-05:00

The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association’s (MBA) weekly survey, rose 18.4% month-over-month on a seasonally adjusted (SA) basis, driven primarily by a surge in refinancing activity. Compared to September 2023, the index increased by 47%. The Market Composite Index which includes the Purchase and Refinance Indices saw monthly gains, rising by 8.6% and 29%, respectively. Year-over-year, the Purchase Index showed a modest increase of 1.9%, while the Refinance Index jumped 149.9%. The average 30-year fixed mortgage rate continued its downward trajectory for the fifth consecutive month, with September seeing a decline of 31 basis points (bps), bringing the rate to 6.18%. This is 117 bps lower than the same time last year. Loan sizes also saw growth across the board. The average loan size for the total market (including purchases and refinances) was $400,450 on a non-seasonally adjusted (NSA) basis, an increase of 5.1% from August. Purchase loans grew by 3% to an average of $439,600, while refinance loans jumped by 11.6% to $363,825. Adjustable-rate mortgages (ARMs) saw an 8.2% increase in average loan size, rising from $1.1 million to $1.2 million. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Refinancing Activity Continues to Climb in SeptemberCatherine Koh2024-10-02T11:16:02-05:00

Private Residential Construction Spending Falls for Third Straight Month

Na Zhao2024-10-01T13:19:40-05:00

Private residential construction spending fell 0.3% in August, according to the Census Construction Spending data. Nevertheless, it remained 2.7% higher compared to a year ago. The monthly decline in total private construction spending for August was largely due to reduced spending on single-family and multifamily construction. Spending on single-family construction fell by 1.5% in August. This marks the fifth consecutive monthly decrease. The rising new single-family home inventory and expectations for lower interest rates both weight on new home building. Despite these challenges, spending on single-family construction was still 0.8% higher than it was a year earlier. Multifamily construction spending inched down 0.4% in August after a dip of 0.3% in July. Year-over-year, spending on multifamily construction declined 7.5%, as an elevated level of apartments under construction is being completed. Private residential improvement spending increased 1% in August and was 9.4% higher than a year ago. The NAHB construction spending index is shown in the graph below (the base is January 2000). The index illustrates how spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates. Multifamily construction spending growth has also slowed down after the peak in July 2023. Meanwhile, improvement spending has increased its pace since late 2023. Spending on private nonresidential construction was up 3.6% over a year ago. The annual private nonresidential spending increase was mainly due to higher spending for the class of manufacturing ($36.4 billion), followed by the power category ($8.8 billion). Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Private Residential Construction Spending Falls for Third Straight MonthNa Zhao2024-10-01T13:19:40-05:00

Rebound for Construction Job Openings

Robert Dietz2024-10-01T10:16:22-05:00

After a period of slowing associated with declines for some elements of residential construction, the count of open construction sector jobs bounced back in the August data, per the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). However, construction job openings remain slightly lower compared to a year ago. In August, after revisions, the number of open jobs for the overall economy increased slightly from 7.71 million to 8.04 million. This is notably smaller than the 9.36 million estimate reported a year ago, but the monthly gain is a sign of a somewhat resilient labor market. Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts on inflation. With estimates now remaining near 8 million for national job openings, the Fed has begun a credit easing cycle. The number of open construction sector jobs rebounded from a revised, soft reading of 232,000 in July to 370,000 in August. Elements of the construction sector slowed in prior months as tight Fed policy persisted. However, with the August rebound for open construction sector jobs, the number of job openings is roughly flat compared to the year-prior estimate of 386,000 in August 2023. The construction job openings rate also increased, rising to 4.3% in August after several months of weaker readings. The layoff rate in construction increased to 2.0% in August after a 1.9% rate in July. The quits rate in construction decreased slightly to 2.1% in August from 2.2% in July. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Rebound for Construction Job OpeningsRobert Dietz2024-10-01T10:16:22-05:00

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