Hard to believe that the summer is winding down and fall is coming up soon! However, there is still time to showcase your town and communities to visitors, which are potential retirees. Tell your story, showcase your attractions, engage them with your downtown events; all are contributing factors in reaching the market segment. As a member of The AARC, take advantage of the research available, look at the national trends and developing news as the market continues to be in demand. And if you haven’t registered for the Annual Conference, I would suggest taking full advantage NOW for early registration. It’s going to be filled with dynamic speakers and superb events. We look forward to seeing you in Wilmington Nov. 15-17, 2017! Learn More….
Homebuilder confidence has risen significantly according to new data. An index published by the National Association of Home Builders rose four points in August to a level of 68; any number over 50 indicates that more builders view conditions as good than poor. A spike in demand led the increase, which was spread across all three parts of the index: current sales conditions, buyer traffic, and future expectations. Source: National Association of Home Builders
Andre’ Nabors Chair, The AARC
Voice for Realtors: Tech Disrupters
Realtor.com | August 23, 2017
How should organized real estate respond when tech giants like Amazon and Facebook pour billions of dollars into creating real estate platforms? NAR Leadership wants to ensure REALTORS® stay well ahead of where technology is going. The latest Voice for Real Estate video looks at that and also NAR’s Call for Action on flood insurance, the growth of virtual brokers, the latest scam to hit real estate, and how REALTORS® can be heroes to homebuyers who are looking for green home features.
Flood ins. Call for Action
New Single-Family Home Size Trends Lower
Robert Dietz, National Association of Home Builders , August 16, 2017
After increasing and leveling off in recent years, new single-family home size continued along a general trend of decreasing size during the second quarter of 2017. This change of the last two years marks a reversal of the trend that had been in place as builders focused on the higher end of the market during the recovery. As the entry-level market expands, NAHB expects typical new home size to fall as well.
According to second quarter 2017 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was slightly lower at 2,388 square feet. Average (mean) square footage for new single-family homes declined to 2,616 square feet.
On a less volatile one-year moving average, the recent trend of declines in new home size can be see on the graph above, although current readings remain elevated. Since cycle lows (and on a one-year moving average basis), the average size of new single-family homes is 10% higher at 2,622 square feet, while the median size is 13% higher at 2,403 square feet.
The post-recession increase in single-family home size is consistent with the historical pattern coming out of recessions. Typical new home size falls prior to and during a recession as home buyers tighten budgets, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions. This pattern was exacerbated during the current business cycle due to market weakness among first-time homebuyers. But the recent declines in size indicate that this part of the cycle has ended, and size will trend lower as builders add more entry-level homes into inventory.
In contrast to single-family patterns, new multifamily apartment size is down compared to the pre-recession period. This is due to the weak for-sale multifamily market and strength for rental demand.
Home Prices Rise 6.2 Percent In Second Quarter, New Housing Data Show
The median existing single-family home price in the second quarter reached $255,600, a rise of 6.2 percent from the second quarter of 2016, according to the latest quarterly report by the National Association of Realtors. That price surpasses the third quarter of last year as the new peak quarterly median sales price, the realty group says.
Single-family home prices last quarter increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas showing sales price gains in the second quarter compared with the second quarter of 2016. Twenty-three areas recorded lower median prices from a year earlier, according to NAR.
“Listings typically flew off the market in under a month – and even quicker in the affordable price range – in several parts of the country,” Lawrence Yun, NAR chief economist, said in a statement. “The 2.2 million net new jobs created over the past year generated significant interest in purchasing a home in what was an extremely competitive spring buying season.”
You can see the full NAR report here.