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Financialization Of Housing And The Disturbing Gap In New Home Sales

The financialization of the U.S. housing market has led to a rather disturbing gap in new home sales relative to existing home sales. This is a subject I was referencing this week when I mentioned the problem builders are facing with the lack of affordable land to build new homes on. Today the Census Bureau reported new home sales for …

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NAR: Existing Home Sales Rise 3.8 Percent In January

The National Association of Realtors reported that existing home sales rose 3.8 percent year-over-year in January. Seasonally adjusted sales for January posted at an annual rate of 5.69 million, the strongest sales volume since February of 2007. Single-family home sales were up 3.7 percent compared to last January. For a local comparison, Houston home sales rose a more modest 1.7 …

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NAR Finally Gets Real About Home Affordability Issues

The National Association of Realtors is out with a new method of gauging home affordability. As part of NAR’s look at the the growing rift between housing availability and home affordability, NAR has developed a new affordability distribution curve and a home affordability score. The new monthly research is designed to look at home affordability conditions among different income percentiles, …

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Texas Realtors Unwittingly Paying For Bad TAMU Economic Research

Texas Realtors are paying for some bad economic research. That’s the only conclusion I can come to after looking at the current situation where highly educated economists are giving short shrift to the underlying causes of Texas home price inflation and market distortions. While the Fed has abdicated its responsibility to the American public, TAMU economists seem to be cooperating …

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New Home Sales Crash Back To Reality Of Higher Rates

The Census Bureau reported December new home sales of 536,000 (seasonally adjusted annual rate). This was a 10 percent drop from the revised November numbers and well shy of expectations. Unadjusted new home sales (38,000) were flat year-over year. The average price of a new home contracted in December 2016 was $384,000 while the median price posted at $322,000, near …

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Why Home Builders Can’t Meet Housing Demand

America’s home builders are having a difficult time meeting housing demand, or so they say. While access to credit is cited as a factor that is holding back builders, that’s only a partial cause of builders’ reluctance to put their money where their optimism index mouth is. As NAHB chief economist, Robert Dietz, explains it builders are finding it more …

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New Home Sales Rise In November To 592,000 (SAAR)

New home sales rose to a seasonally adjusted annual rate of 592,000 in November. Census Bureau numbers showed the average price of a new home contracted in November was $359,900, down from the average price of $376,800 seen last year. The median price of $305,400 was also lower than last year’s median of $317,000. New home sales have been surprisingly …

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Houston Building Permits Plunge In November

The latest building permits data for the city of Houston shows that the value of building permits plunged during November. The total value of permits fell 52.4 percent from last year. YTD figures show that Houston building permits are still off by 18.5 percent compared to 2015. Building permits for multi-family residential plunged 91 percent year-over-year. More importantly, single-family permits …

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Lennar: Houston No Longer Meets Reportable Segment Criteria

Lennar Homes reported fourth quarter and fiscal year-end numbers today. While reporting a 7 percent rise in new home sales and a 9 percent rise in new orders, Lennar (LEN) also hinted at the stagnation of the Houston new home market by ending reporting for Houston as a special segment. “There was an increase in home deliveries in all of …

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Air Pocket Coming To A Housing Market Near You

The Federal Reserve’s 25 basis point rate hike was widely anticipated. What is less appreciated is the slack it’s going to create in Houston home sales as we head into the first quarter of 2017.  This week the Houston Association of Realtors reported record November home sales. Both the median ($222,000) and average ($281,671) home price hit new record highs in …