National Builder Trade In Program

2016 Housing Forecast: New Construction to Drive Highest Home Sales since 2006

by Builder Trade In Program Dec, 15

 

New home construction and moderate gains in the existing home market will deliver the necessary one-two punch to push total home sales to the highest levels since 2006, according to the 2016 housing forecast issued this week by realtor.com . The forecast also identifies the top 10 markets for growth, as well as expectations for home prices and sales, interest rates and new home sales and starts.

2016 national housing outlook The 2016 housing market is expected to be a picture of moderate, but solid growth as acceleration in existing home sales and prices both slow to 3 percent year over year due to higher mortgage rates, continuing tight credit standards, and lower affordability. The new construction market will see more significant gains in the coming year as new home starts increase 12 percent year over year and new home sales grow 16 percent year over year. Total sales for existing and new homes will reach 6 million for the first time since 2006, a result of a strong gross domestic product increase of 2.5 percent and continued job creation. These healthy economic indicators will be tempered by lack of access to credit and rising home prices, which will ultimately limit housing demand and growth.

"Next year's moderate gains in existing prices and sales, versus the accelerated growth we've seen in previous years, indicate that we are entering a normal, but healthy housing market," says Jonathan Smoke, chief economist for realtor.com . "The improvements we've seen over the last few years have enabled a recovery in the existing home market, but we still need to make up ground in new construction, which we could begin to see in 2016. New home sales and starts will bring overall sales to levels we have not seen since 2006 and will help set the stage for a healthy new home market."

Who are the 2016 home buyers? Next year's standout year in total sales will be driven by three distinct segments of home buyers-older millennials (25-34 years old), younger gen X'ers (35-44 years old), and retirees (65-74 years old), according to Smoke.

Millennials: They are expected make up the largest demographic of home buyers in 2016, having represented 30 percent of the existing home market. Driven by increasing income, millennials will seek out homes that meet the needs of their growing families-putting the most weight on the safety of the neighborhood and the quality of the home. Commute time and a preference for older homes have these buyers looking in city-centers and closer-in suburbs. According to realtor.com 's proprietary research, the following markets are expected to be some of the most sought-out markets for millennial home buyers in 2016, due to their large numbers of millennials, strong employment growth, and relative affordability.

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Mortgage rates see little change

by Builder Trade In Program Dec, 11

According to Freddie Mac's Primary Mortgage Market Survey, interest rates for U.S. home mortgages declined slightly or saw little change for the week ending Nov. 25

According to Freddie Mac's Primary Mortgage Market Survey, interest rates for U.S. home mortgages declined slightly or saw little change for the week ending Nov. 25. 

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Feds Raise Rates

by Builder Trade In Program Dec, 01

December should be the month after years of zero interest, now is the time.

Why now you ask? Inflation is nearing 2.5%, the housing market is slowing, so why now? When the rates go up, Buyer's hop back into the market and get off the fence.

Rates are at a 30 year low and 1/2 % rate increase will not be felt by most. Gas prices are low, unemployment is low and most families have paid off or down their debt, so the economy is ready!

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Home Builders Proudly Serve Our Veterans

by Builder Trade In Program Nov, 13

 

Many home builders are making the effort to serve our military and veterans across the nation.  The most creative efforts have been by those builders where there is a vast military population.  They include free upgrades, assistance with closing costs, providing Green housing and modern developments for wounded veterans. But while our veterans appreciate the benefits, most importantly, they want a reputable and honest company…one with family values and integrity.

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Mortgage default rate remains low

by Builder Trade In Program Nov, 06

A great deal of progress has been made in the real estate market since the housing crisis in 2008.

More individuals are applying for U.S. home mortgages, and consumer default rates decreased in September.

S&P Dow Jones Indices show low default rate. According to a recent press release from S&P Dow Jones Indices, there was a composite default rate of 0.89% in September. This is down seven basis points when compared month over month.

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Housing Starts Rise as Construction Underpins U.S. Economy

by Builder Trade In Program Oct, 30

New-home construction in the U.S. climbed in September, a sign residential real estate will bolster the world’s largest economy.

Housing starts increased 6.5 percent to a 1.21 million annualized rate, more than forecast and the second-highest level in eight years, figures from the Commerce Department showed Tuesday in Washington. A drop in building permits indicates the rebound will be slow to materialize.

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CHA,…CHA,…CHANGES!

by Builder Trade In Program Oct, 23

 

Times they are a changin’ and the new homes of today and in the future have had to mold to the lifestyles of our future.  Consideration of our natural resources and the technology demand need to be realized and recognized in the construction of our new homes today.

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HERS Index - Understanding the HERS Score

by Builder Trade In Program Oct, 15

The RESNET HERS Index is the industry standard by which a home's energy efficiency is measured. The HERS or Home Energy Rating System was developed by RESNET and is the nationally recognized system for inspecting and calculating a home's energy performance. Certified RESNET Home Energy Raters conduct inspections to verify a home's energy performance and determine what improvements can be made to increase it.

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Master-Planned Communities – Live, Work, Play, Connect!

by Builder Trade In Program Oct, 09

 

The evolution of master-planned communities has been advancing since the 1980’s with a shift in emphasis from private homes and yards to the public domain. According to Eric Osth, managing principal at Pittsburgh-based Urban Design Associates, towns like Seaside and Celebration, Florida established the value of new communities and urbanism.  Celebration took those values to the masses which helped builders understand how to actually build a town.  These communities are designed with walking and bike paths, and convenient access to work, shopping, entertainment, and transit links. People are looking for less stressful solutions and maximizing their day.  Bike to work…. Less commuting… Save gas/mileage... equals great exercise.

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Interest rates remain steady with Fed's latest announcement

by Builder Trade In Program Oct, 02

The U.S. Federal Reserve reached a decision regarding a potential hike in interest rates on Sept. 17, and the final verdict indicated the key funds rate would remain steady, according to Reuters.

The U.S. Federal Reserve reached a decision regarding a potential hike in interest rates on Sept. 17, and the final verdict indicated the key funds rate would remain steady, according to Reuters. 

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