Arizona Senator Ruben Gallego wants to use an employment-based visa program to draw more foreign investment into the US housing market, the latest proposal from Washington aimed at easing an affordability crunch caused by years of underbuilding and higher mortgage rates. Gallego – a Democrat whose travel to key states this year spurred speculation of […]
Senator seeks to tap foreign visa program to ease housing costs Read More »
The debate over the large builders’ elevated use of mortgage buydowns — and the potential risks to buyers — isn’t new. Reigniting the argument, a recent report from the American Enterprise Institute (AEI) asserts that mortgage buydowns among the large builders are artificially inflating new home prices, therefore creating a risk for buyers in the
Are mortgage buydowns a lifeline or a risk for new homebuyers? Read More »
The Center for American Progress (CAP) recently put out a plan aimed at lowering housing costs nationwide by increasing construction and making homebuilding more affordable through federal efforts. The “Build, Baby, Build” proposal, published by CAP on Nov. 17, targets the nation’s estimated housing shortage of 2 million units, which the group says has contributed
Center for American Progress outlines plan to reduce housing costs Read More »
Selling houses in an uncertain market, as we find ourselves in today, is challenging. Maybe we should stop trying to sell the house and instead focus on the positive impact it will have on our buyers’ lives. This is the approach Mars Inc. used to sell its Snickers bar. The ad campaign “You’re not you
Note to self: sell the lifestyle, not just the house, to boost sales Read More »
Monthly payments for new and existing homes are now nearly equal, amid a trend of stagnating prices and increased use of mortgage buydowns among builders. That was one of the main findings from Realtor.com’s Q3 New Construction Report. According to the report, buyers purchasing a new home last quarter had an average mortgage payment only
New home price premium hits record low Read More »
I’ve been reading more articles arguing that our housing shortage is artificially created—that it’s caused by the increasing concentration of homebuilders and the decline in private homebuilders. The theory suggests that public builders are “hoarding” lots to drive prices up when they could be selling more homes and lowering prices. I initially dismissed this narrative.
Root causes: housing shortage driven by policy, not big builder concentration Read More »
Reports of a sub-1% mortgage rate are no exaggeration. D.R. Horton was offering that ultra-low rate last month on certain new homes, a salesperson confirmed this week. Today, the industry giant and its homebuilder peers are still promoting attractive terms, with fixed rates as low as 3.99% and with buydowns, down to 1.99%. Jeremy Schachter,
What’s behind homebuilders’ ultra-low rate deals Read More »
As major builders like D.R. Horton and Tri Pointe Homes trim new home starts to protect margins, Beazer Homes is taking a page out of Lennar’s playbook. Beazer’s Q4 earnings call reveals a builder determined to sustain a robust sales pace, even as it navigates a lower-margin reality driven by a spec-heavy approach and increased
Beazer Homes shifts to move-up buyers, bets on energy efficiency Read More »
US homebuilders’ confidence barely rose this month as they struggled to lure cautious buyers off the sidelines with costly sales incentives. An index of market conditions from the National Association of Home Builders and Wells Fargo ticked up 1 point in November to 38. A value below 50 means more builders see conditions as poor
US homebuilder sentiment barely rises despite price cuts Read More »
New-home mortgage applications fell again in October, but the seasonally adjusted annual sales pace climbed to its highest level this year, according to the Mortgage Bankers Association. New-home purchases fell 2.6% year over year and 1% month over month in October, according to the Mortgage Bankers Association’s Builder Application Survey. The MBA also estimated that
New-home sales pace hits 2025 high despite dip in apps Read More »