Green-home features are becoming more popular among home buyers and it’s led to an increasing number of builders who say they’re incorporating green features into the homes they build. For example, the National Association of Home Builders’ Green Multifamily and Single Family Homes 2017 SmartMarket Brief surveyed builders to find out how many were using green-building techniques. According to their findings, one third of builders said green building makes up more than 60 percent of their portfolio. And the expectation is that the number should continue to rise in coming years. Granger MacDonald, NAHB’s chairman, says green homes are here to stay. “These findings show that green building has become an established part of the residential construction landscape,” MacDonald says. “It is no longer a niche business; our members recognize the value of building green and are incorporating these elements into their standard business practices.” The increased interest is being driven by consumers who value things like energy efficiency and are looking for homes that create a healthier environment. Because of this, as awareness of these features grows, so will demand. More here.
October Newsletter
Economic Optimism Drives Demand For Homes
A new survey from the National Association of Realtors shows Americans are optimistic about their economic situation and increasingly think now is a good time to buy or sell a home. The quarterly survey found a spike in both the number of current renters who think now is a good time to buy a house and homeowners who say it’s a good time to list their house. In fact, among current homeowners, the number who said it was a good time to sell hit a record high. Lawrence Yun, NAR’s chief economist, says the optimism is largely driven by economic conditions. “Jobs are plentiful, wage growth is finally showing signs of life, home values are up considerably in the past five years and the stock market is at record highs,” Yun said. “The economy is not perfect, and growth overall is still sluggish, but the financial health of the typical household looks as healthy as it has since the recession.” The survey’s results also show increasing positivity among Americans about their personal financial situation and their outlook for the next six months. More here.
What Homeowners Say Is Their Top Regret
Homeowners Often Overestimate Their Home’s Value
American homeowners may be overestimating their home’s worth, according to new data. The research shows appraisals in August were 1.35 percent lower than homeowners expected. There are a couple of reasons this could be happening. First, there has been a lot of attention paid recently to how far prices have risen over the past few years. But, while this is true, it is not necessarily true in every neighborhood, in every city, across the country. So, homeowners who have been hearing that prices are going up, may have a misperception of just how much their home’s value has risen. As evidence of this, data shows homeowners in the West thought their homes would appraise for less than what they eventually did, while homeowners in the Midwest were disappointed to find their appraisals didn’t meet their expectations. Another possible reason for the misperception is that homeowners are generally attached to their homes. And, if you’ve invested time, money, and maintenance into a property, when it comes time to sell or refinance, you’re naturally going to – not only hope for the best possible outcome – but expect that everyone else who looks at your house will see it the way you do and value you it just as much. Unfortunately, though, that may not always be the case. More here.
U.S. Homeowners See Big Returns From Selling
The real estate market is hard to time. That’s why you should buy a house because you want to become a homeowner and stay somewhere for awhile, not because you hope to make money off the eventual sale of your house. However, new data shows that recent home sellers who’ve lived in their homes for around 7 years have been seeing big returns. In fact, nationally home sellers sold their homes for 24 percent more than what they originally paid. And, in some markets, that percentage is far higher. For example, Oakland’s typical seller sold for 78 percent more than what they paid and, in Portland, sellers saw a 65 percent gain after living somewhere for 9 years. Most of the largest returns were seen in markets in the West, though Philadelphia, New Orleans, and Boston also made the list. It should be noted, however, that though these numbers may make it seem easy to cash in on your house, prospective home buyers should know that the housing market tends to move up-and-down over the years. Homeowners who are selling a home they bought 7 years ago were buying at a time when home prices had recently plummeted, which makes their gains more understandable and less likely to repeat. More here.
How Long Will You Stay In Your New House?
Americans See A Good Opportunity To Sell
For many years, when home prices and mortgage rates were both lower than normal, home buyers had a historic opportunity to find a great deal and lock in an excellent rate. These days, though mortgage rates remain historically low, home prices have rebounded and, in some markets, surpassed previous peaks. Which explains why the most recent results of Fannie Mae’s monthly Home Purchase Sentiment Index show more Americans saying it is a good time to sell a house than buy one. In fact, the number of respondents who said it was a good time to sell was up 8 percent over the month before. At the same time, the number who said it was a good time to buy fell. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the survey has seen its results reversed over the past few years. “In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment by a significant margin. The reverse is true today,” Duncan said. “The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions.” But though that may sound like bad news for potential buyers, the more American homeowners put their homes up for sale, the more likely price increases will slow down and offer buyers some relief. More here.
Georgia Market; Low Inventory and Higher Sale Prices
Georgia housing indicators for July are in, and the market in Georgia mirrors the now two-year national trend of low inventory and higher sale prices:
New Listings increased 3 percent to 14,873.
– Pending Sales increased 14.7 percent to 11,772.
– Closed Sales were stable, posting a 1 percent increase to 11,256.
– Days on Market decreased 9 percent to 50 days.
– Median Sales Price increased 4 percent to $208,500.
– Average Sales Price increased 4.5 percent to $256,125.
– Inventory levels decreased 13 percent to 38,169 units.
– Months’ Supply of Inventory was down 20 percent to 3.7 months.
Click here to access the full report for July.
New Home Sales Up 9% Over Last Year
Sales of newly built single-family homes are now 9.2 percent above last year’s level, according to new numbers from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
This year-over-year improvement is important, especially since month-over-month results showed a 9.4 percent decline. In short, monthly housing data can be volatile but, if you focus on long-term results, it often reveals a much different picture.
That’s why, despite a drop in July, Michael Neal, senior economist with the National Association of Home Builders, says sales should continue to improve. “The year-to-date growth shows that new home sales continue to trend upward at a steady pace over the longer term,” Neal said. “Steady economic growth and a healthier labor market suggest that the underlying economic fundamentals remain in place for a continued recovery.” New home sales are an important barometer because new home construction helps balance the market and moderate price increases.
Also in the report, the median sales price of new houses sold in July was $313,700. The average sales price was $371,200. More here.