The Headlines: September 14, 2017

Ten Home Building industry stories we have read recently:

  • New FHA multifamily mortgage insurance applications halted in Texas disaster areas (expect delays in processing applications across the country). NAHBNow
  • How local housing regulations smother the U.S. economy (and affordable housing). New York Times.
  • Co-borrowing to afford a home is gaining popularity.  Who’s doing it and why?  MarketWatch.
  • Hurricanes Irma, Harvey boost call for flood insurance (renewal of the program).  Orlando Sentinel.
  • 70 percent of Harvey residential flood damage not covered by insurance.  National Mortgage News.
  • A devastating hurricane season exposes America’s flood insurance problem (Senator Tim Scott is quoted).  Time.
  • Labor shortage could hamper Harvey reconstruction.  Houston Chronicle.
  • The last big piece of unfinished business from the Great Recession (Fannie and Freddie).  The Washington Post.  
  • Top ten sources of softwood lumber imports (in short, Canada laps the field).  Eye on Housing.
  • Baby Boomers who refuse to sell are dominating the housing market (55 percent of owner-occupied housing is owned by people 55 years and older, the highest in history).  Bloomberg.

Did you know?  25 percent of all flood insurance policies in the U.S. are written in the state of Florida.

September 14, 2017.

The Headlines: July 27, 2017

Ten Home Building industry stories we have read recently:

  • When builders and Postmasters disagree. NAHBNow.
  • Treasury examines burdensome tax regulations with eye to repeal. NAHBNow.
  • New home sales rise by 2.9 percent in May. Reuters.
  • Existing home sales rebound in May despite record-low supply. MarketWatch.
  • Five years ago, Trump made a prediction on Twitter about housing. He nailed it. The Washington Post.
  • More than half of U.S. renters can’t afford a mortgage. MarketWatch.
  • Could the housing market meltdown happen again? Investors Business Daily.
  • Community banks account for nearly half of residential construction loans. Eye On Housing.
  • Want a $1 million paycheck? Skip college and go to work in a lumberyard. Bloomberg.
  • Top 5 mobile apps for Home Builders. NAHBNow.

July 27, 2017

    Jack Hough: Why U.S. house prices won’t recover

    An article by Jack Hough at opines that when taking into account the rate of inflation, U.S. house prices are at 1895 levels and will not return to pre-2008 levels.  He also reports that housing is still a good investment historically.

    “But consider: After subtracting for inflation, prices are also back to 1986 levels. And 1955 levels. And 1895 levels.

    “That’s because the natural rate of price appreciation for houses is zero after inflation. Prices will eventually stop falling. They’ll resume rising. But over the long term, they’re unlikely to resume rising faster than inflation.
    “That’s why prospective buyers should stop focusing on the vague hope that house prices will jump from here and focus instead on the functional value houses provide for the money. In most markets, they provide enough of that to make buying a good deal.”