January 29th, 2014

Housing starts are still strong despite a fall

Posted by at 12:56 am

Housing starts are a critical predictor of future homebuilder sales Housing starts are released jointly by the Census Bureau and the Department of Housing and Urban Development. Analysts use the information to anticipate future production for homebuilders, future demand for raw materials, and labor costs. This data will even affect the forecasts for home-related retailers, like Lowe’s and Home Depot. Housing starts cover the number of privately owned housing units that started in a given period. For multi-family units, each individual unit is considered a housing start. If there’s a lot of multi-family construction happening, then housing starts can become elevated, and investors must take care not to read too much into the builders of single-family homes. Single-family and multi-family starts both fall Housing starts fell from 1,091,000 to 999,000. Multi-family and single-family starts both decreased. Multi-family starts were 312,000...
Read more
January 25th, 2014

All-cash offers are crushing first-time homebuyers

Posted by at 12:34 am

The San Francisco housing market has become difficult for first-time home buyers. Due to the increase in demand, buyers are coming in with full-cash offers that are significantly higher than asking. This is leaving first time home buyers out of the race, and struggling to find good homes available. While the Bay Area saw weak housing sales in December, according to DataQuick, prices continue to rise. That is largely due to tight supply and investor cash. The median home price in the Bay Area was up 24 percent from December of 2012. Many homebuyers can’t compete with that. First-timers historically account for about 40 percent of the market, but accounted for just 27 percent of homebuyers nationally in December. Their reasons for dropping out are manifold: High student loan debt, poor employment and poor wage growth, and less-than-pristine credit. First-time...
Read more