Homebuilder optimism slips slightly to start 2020 but is still high

A contractor uses a hammer while working on townhouse under construction at the PulteGroup Metro housing development in Milpitas, California, Oct. 25, 2018. The nation’s single-family homebuilders are feeling very confident about their business in the new year, as high demand and low supply make for a profitable mix. Builders are also starting to pivot more to entry-level homes, after a decade of building mostly move-up product. “With the Federal Reserve on pause and [with] attractive mortgage r


A contractor uses a hammer while working on townhouse under construction at the PulteGroup Metro housing development in Milpitas, California, Oct. 25, 2018.
The nation’s single-family homebuilders are feeling very confident about their business in the new year, as high demand and low supply make for a profitable mix.
Builders are also starting to pivot more to entry-level homes, after a decade of building mostly move-up product.
“With the Federal Reserve on pause and [with] attractive mortgage r
Homebuilder optimism slips slightly to start 2020 but is still high Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, points, singlefamily, slightly, point, 2020, start, optimism, slips, months, builders, construction, sentiment, homebuilder, high, unchanged, rates, sales


Homebuilder optimism slips slightly to start 2020 but is still high

A contractor uses a hammer while working on townhouse under construction at the PulteGroup Metro housing development in Milpitas, California, Oct. 25, 2018.

The nation’s single-family homebuilders are feeling very confident about their business in the new year, as high demand and low supply make for a profitable mix.

Yet, sentiment in January did slip 1 point on the National Association of Home Builders/ Wells Fargo Housing Market Index to 75, but that is considerably higher than last January, when it was 58. Last month’s reading was a 20-year high. Anything above 50 is considered positive.

Low interest rates are making homebuying more affordable, despite the price premium for new construction. Builders are also starting to pivot more to entry-level homes, after a decade of building mostly move-up product. Prices are still rising for new and existing homes, so there may be some friction ahead if affordability worsens.

“With the Federal Reserve on pause and [with] attractive mortgage rates, the steady rise in single-family construction that began last spring will continue into 2020,” said NAHB chief economist Robert Dietz. “However, builders continue to grapple with a shortage of lots and labor while buyers are frustrated by a lack of inventory, particularly among starter homes.”

Of the HMI’s three components, buyer traffic increased 1 point to 58, the highest level since December 2017. Current sales conditions, however, fell 3 points to 81 and sales expectations in the next six months was unchanged at 79.

Regionally, on a three-month moving average, builder confidence in the Northeast rose 1 point to 62, increased 3 points in the Midwest to 66 and in the West it moved 1 point higher to 84. Sentiment in the South was unchanged at 76.


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, points, singlefamily, slightly, point, 2020, start, optimism, slips, months, builders, construction, sentiment, homebuilder, high, unchanged, rates, sales


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Fannie Mae boosts 2020 housing forecast ‘significantly’

U.S. builders started work on more homes and apartments last month and requested more permits to build single-family homes. The increases suggest the battered housing market is healing. After increasing just over 1% annually this year, growth in single-family housing starts will accelerate to 10% during 2020 and top 1 million new homes in 2021, the group predicts. Single-family housing starts have been improving steadily since May, and building permits, an indicator of future construction, are a


U.S. builders started work on more homes and apartments last month and requested more permits to build single-family homes.
The increases suggest the battered housing market is healing.
After increasing just over 1% annually this year, growth in single-family housing starts will accelerate to 10% during 2020 and top 1 million new homes in 2021, the group predicts.
Single-family housing starts have been improving steadily since May, and building permits, an indicator of future construction, are a
Fannie Mae boosts 2020 housing forecast ‘significantly’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-18  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, homes, builders, boosts, singlefamily, existing, significantly, fannie, starts, forecast, construction, housing, 2020, mortgage, market, shortage, mae


Fannie Mae boosts 2020 housing forecast 'significantly'

Construction workers build an apartment complex in Lawrence, Kan., Wednesday, May 16, 2012. U.S. builders started work on more homes and apartments last month and requested more permits to build single-family homes. The increases suggest the battered housing market is healing. The Commerce Department said Wednesday that builders broke ground in April at a seasonally adjusted annual pace of 717,000 homes. That’s a 2.6 percent increase from an upwardly revised March figure and near January’s three

Strong reads on the economy have researchers at mortgage giant Fannie Mae revising their 2020 housing forecast much higher.

Fannie Mae’s Economic and Strategic Research Group predicts builders will expand production more than previously expected, due to a strong labor market and robust consumer spending. Low mortgage rates will also help.

After increasing just over 1% annually this year, growth in single-family housing starts will accelerate to 10% during 2020 and top 1 million new homes in 2021, the group predicts. That would mark a post-recession high but is still far below the annual peak of about 1.7 million single-family starts in 2005 and the 1.2 million annual pace experienced in the late ’90s.

Single-family housing starts have been improving steadily since May, and building permits, an indicator of future construction, are also trending higher.

“It will likely take several years, even at a more robust pace, for new construction to address the existing pent-up demand for additional housing, as suggested by a still-increasing share of 25- to 34 year-olds living at home with their parents,” according to the report.

The shortage of existing homes for sale has pushed more potential buyers to the new-build market. Mortgage applications to purchase a newly built home were up 27% annually in November, according to the Mortgage Bankers Association. Homebuilder sentiment jumped to the highest level in 20 years in December, according to the National Association of Home Builders.

“We now expect single-family housing starts and sales of new homes to increase substantially, aided by a large uptick in new construction as builders work to replenish inventories drawn down by the recent surge in new home sales activity,” said Fannie Mae chief economist Doug Duncan.

The increase in construction, however, is unlikely to ease the overall housing shortage. Researchers at Fannie Mae are predicting a modest decline in existing home sales through the third quarter of 2020, due to the shortage of listings.

Overall housing demand is incredibly high, especially at the lower end of the market, where builders are least active. Prices are rising fastest on the low end, sidelining some first-time buyers.

“This stronger price appreciation is also having the unfortunate effect of partially offsetting savings to potential homebuyers from lower mortgage rates,” Duncan said.

The average rate on the 30-year fixed mortgage is hovering just below 4%, a full percentage point lower than where it was a year ago. Low rates are boosting already strong demographic demand drivers in the market. Millennials, who delayed buying homes because of the recession, are now flooding into new and existing homes.

“Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years, further bolstering our modest-but-solid growth forecasts through 2021,” said Duncan.


Company: cnbc, Activity: cnbc, Date: 2019-12-18  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, homes, builders, boosts, singlefamily, existing, significantly, fannie, starts, forecast, construction, housing, 2020, mortgage, market, shortage, mae


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Homebuilders aren’t keeping up with millennials

Homebuilders aren’t building enough for millennialsThat generation is expected to be the largest single cohort of homebuyers next year, but the nation’s homebuilders are not keeping up. This is already exacerbating the shortage of homes for sale and for rent nationwide, but will especially hurt affordability for millennials (those born between 1981 and 1997). While the majority of both single- and multifamily home construction is in millennial-dense counties, it actually lags the rest of the nat


Homebuilders aren’t building enough for millennialsThat generation is expected to be the largest single cohort of homebuyers next year, but the nation’s homebuilders are not keeping up.
This is already exacerbating the shortage of homes for sale and for rent nationwide, but will especially hurt affordability for millennials (those born between 1981 and 1997).
While the majority of both single- and multifamily home construction is in millennial-dense counties, it actually lags the rest of the nat
Homebuilders aren’t keeping up with millennials Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, millennials, homebuilders, counties, homes, arent, areas, keeping, millennial, single, shortage, singlefamily, population, labor, construction


Homebuilders aren't keeping up with millennials

Homebuilders aren’t building enough for millennials

That generation is expected to be the largest single cohort of homebuyers next year, but the nation’s homebuilders are not keeping up. This is already exacerbating the shortage of homes for sale and for rent nationwide, but will especially hurt affordability for millennials (those born between 1981 and 1997).

While the majority of both single- and multifamily home construction is in millennial-dense counties, it actually lags the rest of the nation when it comes to meeting demand. Millennial counties, defined as geographic areas where at least a quarter of the population consists of this demographic group, account for 62% of the entire U.S. population, but they account for just 59% of single-family homebuilding, according to the National Association of Home Builders’ Home Building Geography Index, or HBGI.

“On the surface, these numbers look similar, but you would expect the single-family construction share to be higher in millennial intensive areas, which tend to feature greater amounts of household formation and population growth that require additional housing,” said NAHB Chief Economist Robert Dietz.

And it’s not just in urban areas. Millennial counties are of course in big markets like Seattle, Boston, Portland, Oregon, and Washington, D.C., but also in rural parts of Ohio, Kansas and Missouri. Homebuilding is still nowhere near its historical levels, nevermind today’s very strong demand. Much of that is due to higher costs for land, labor and regulatory compliance. It takes much longer to build homes now because of the acute labor shortage in the construction industry.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, millennials, homebuilders, counties, homes, arent, areas, keeping, millennial, single, shortage, singlefamily, population, labor, construction


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Renting a single-family house just got more expensive

As more Americans find it harder to afford a home, rental demand is soaring, especially for single-family homes. The supply of rental homes is shrinking, and that continues to push rent prices higher, particularly on the lower end of the market. Those less expensive rentals, going for less than 75% of the median regional rent, jumped nearly 4% annually in September, according to CoreLogic. “Low rental supply coupled with ongoing demand pushed up rents in September,” said Molly Boesel, principal


As more Americans find it harder to afford a home, rental demand is soaring, especially for single-family homes.
The supply of rental homes is shrinking, and that continues to push rent prices higher, particularly on the lower end of the market.
Those less expensive rentals, going for less than 75% of the median regional rent, jumped nearly 4% annually in September, according to CoreLogic.
“Low rental supply coupled with ongoing demand pushed up rents in September,” said Molly Boesel, principal
Renting a single-family house just got more expensive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-19  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, singlefamily, renting, rentals, annually, rent, expensive, growth, rental, house, prices, saw, supply, vacancy, rates


Renting a single-family house just got more expensive

Anyone out shopping for an entry-level home knows the prices are high and the pickings are slim. Now, the same is holding true for rentals. As more Americans find it harder to afford a home, rental demand is soaring, especially for single-family homes.

The supply of rental homes is shrinking, and that continues to push rent prices higher, particularly on the lower end of the market. Those less expensive rentals, going for less than 75% of the median regional rent, jumped nearly 4% annually in September, according to CoreLogic. High-end rentals, or those with prices greater than 125% of the region’s median rent, increased just 2.9% annually.

“Low rental supply coupled with ongoing demand pushed up rents in September,” said Molly Boesel, principal economist at CoreLogic. “Vacancy rates have fallen moderately on the national level over the last quarter – with a 0.3% decrease in the third quarter of 2019 compared to a year earlier – and more significantly in select metro areas.

Phoenix saw the biggest drop in vacancy rates, to just 2.6%. That in turn pushed rent growth to 6.7% annually. Phoenix has seen very strong job growth and is attracting new employees to the area.

Las Vegas wasn’t far behind at 5.8% annual rent growth, and Seattle rounded out the top three at 5.5% growth. Miami saw the lowest rent increase at just 1% annually.


Company: cnbc, Activity: cnbc, Date: 2019-11-19  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, singlefamily, renting, rentals, annually, rent, expensive, growth, rental, house, prices, saw, supply, vacancy, rates


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Taylor Morrison is the latest big homebuilder to bet on single-family rentals

Scottsdale, Arizona-based Taylor Morrison just announced a partnership with Christopher Todd Communities, also based in the state, to build single-family, rent-only communities. It’s part of a trend of builders stepping in to the single-family rental space, either on their own or partnering with established rental companies. As for Taylor Morrison, the first projects will be in joint ventures, but then it will take over the construction process — acquire land, develop it and eventually build in


Scottsdale, Arizona-based Taylor Morrison just announced a partnership with Christopher Todd Communities, also based in the state, to build single-family, rent-only communities. It’s part of a trend of builders stepping in to the single-family rental space, either on their own or partnering with established rental companies. As for Taylor Morrison, the first projects will be in joint ventures, but then it will take over the construction process — acquire land, develop it and eventually build in
Taylor Morrison is the latest big homebuilder to bet on single-family rentals Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: diana olick
Keywords: news, cnbc, companies, rentals, sell, singlefamily, big, homes, christopher, taylor, bet, communities, homebuilder, investors, morrison, palmer, rental, latest


Taylor Morrison is the latest big homebuilder to bet on single-family rentals

It didn’t take long, but the build-for-rent space is starting to get a little crowded.

Scottsdale, Arizona-based Taylor Morrison just announced a partnership with Christopher Todd Communities, also based in the state, to build single-family, rent-only communities. It’s part of a trend of builders stepping in to the single-family rental space, either on their own or partnering with established rental companies.

Lennar and Toll Brothers have recently started building homes for rent. Lennar sells its properties to investors, while Toll plans to hold the properties in partnerships.

As for Taylor Morrison, the first projects will be in joint ventures, but then it will take over the construction process — acquire land, develop it and eventually build in excess of 2000 single-family homes in rent-only communities. Christopher Todd will design the communities, hire property management and lease the homes. It will all be according to the company’s own time-tested “playbook,” which determines supply-demand characteristics, and then gauges the right submarkets, community design and amenities package.

Three developments are planned in the Phoenix area, breaking ground late this year. The expectation is then to expand over the next several years, bringing more rental communities to more markets.

Taylor Morrison’s CEO, Sheryl Palmer, said she expects to sell the homes to investors initially but might consider other options over time.

“We’ll determine the right time in the lease-up process to sell the assets. There is plenty of money out there, so we could look at a REIT or private investors, but our intent will be to divest in a pretty timely fashion,” said Palmer. “As we look at the best way to optimize price and returns, it might be to do something on our own and create our own fund or REIT, but sell them out of the Taylor Morrison land portfolio.”

Demand for single-family rentals is incredibly strong, as home prices soar and social stigmas around renting fall away. Vacancy rates are low and rents are rising. Half of Christopher Todd’s current tenants are millennials and half are baby boomers, according to Palmer.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: diana olick
Keywords: news, cnbc, companies, rentals, sell, singlefamily, big, homes, christopher, taylor, bet, communities, homebuilder, investors, morrison, palmer, rental, latest


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This is the ‘fastest growing trend’ in the housing industry, and investors are rushing in

Demand for single-family rental homes is surging, and homebuilders are now stepping in, redesigning and reimagining the sector — and becoming landlords themselves. While builders have always sold some of their new homes to investors as rentals, the strong demand has some moving into the space exclusively. Pradera is a gated community with three- and four-bedroom homes, renting from about $1,800 to $2,300 per month. We saw a growing need coming out of the downturn, to provide three- and four-bedr


Demand for single-family rental homes is surging, and homebuilders are now stepping in, redesigning and reimagining the sector — and becoming landlords themselves. While builders have always sold some of their new homes to investors as rentals, the strong demand has some moving into the space exclusively. Pradera is a gated community with three- and four-bedroom homes, renting from about $1,800 to $2,300 per month. We saw a growing need coming out of the downturn, to provide three- and four-bedr
This is the ‘fastest growing trend’ in the housing industry, and investors are rushing in Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: diana olick
Keywords: news, cnbc, companies, industry, fastest, rushing, singlefamily, investors, thing, trend, homes, renting, space, pradera, apartment, housing, growing, community, walters


This is the 'fastest growing trend' in the housing industry, and investors are rushing in

Demand for single-family rental homes is surging, and homebuilders are now stepping in, redesigning and reimagining the sector — and becoming landlords themselves. While builders have always sold some of their new homes to investors as rentals, the strong demand has some moving into the space exclusively. AHV Communities, partnering with Bristol Group, is putting up 250 new detached homes in fast-growing San Antonio. Pradera is a gated community with three- and four-bedroom homes, renting from about $1,800 to $2,300 per month. The community includes luxury amenities, like a pool, fitness center, community kitchen and party space, as well as a dog park and dog-washing station. “We basically took an apartment and went horizontal instead of vertical,” AHV founder and CEO Mark Wolf said. “About 93% of the apartment stock consists of studios, one and two bedrooms, very few three bedrooms. We saw a growing need coming out of the downturn, to provide three- and four-bedroom homes to the renter society.” Wolf, who has experience in the multifamily apartment market, saw a need for more single-family homes after the housing crash, and he says that demand has not fallen off. While the homeownership rate has risen from its historic low in 2016, it is now starting to slip again. “We think there’s a major shift in the demographics. Empty nesters are done taking care of their homes. They want to downsize, they want portability, mobility in the lease. The millennial household formation, they’re not really dialed into taking care of a home, they want to go out and do the same thing that the boomers are doing, which is enjoy life, not work hard for their house,” said Wolf.

Builders are becoming landlords by renting their housing developments. The Pradera development has its own dog-washing station at Pradera Lisa Rizzolo

Last year, about 43,000 single-family homes were built for rent, the largest number in nearly 40 years according to National Association of Home Builders analysis of U.S. Census data. The built-for-rent share of housing starts is also rising, nearly double its recent historical average (from 1992-2012). Millennials Taylor Walters and Paree Dilkes want to get out of their rental apartment and into a larger single-family home. “So we’ve been looking online for months now, whether to buy or whether to rent, and this is definitely up our alley,” Walters said as the two toured the amenities at Pradera. They are not married and have no children, but they do have a big dog. “That’s really the biggest thing. It’s very inconvenient to have to take him out every time he needs to go. Having a yard would be awesome, just let him out, and also a little bit more space. We have a pretty good-sized apartment right now, but just kind of the feeling of being in a house,” said Dilkes. Renting used to come with a social stigma, since homeownership was touted as the American Dream. The average annual household income of tenants in Pradera, however, is over $100,000, meaning many of them can afford to buy a home but simply choose not to. Walters and Dilkes considered buying, but didn’t like the way the math worked out. “I’ve done research, read different articles on millennials buying houses, and I think the biggest thing is the hidden costs that we might incur,” said Walters. Stephanie Dixon and her husband recently sold their San Antonio home and moved into the rental community. Their children are in college or graduated, and they wanted an easier lifestyle. “If the water heater breaks, you know, I don’t have to replace it. I just call them. I mean, even the air filters, they came and changed my air filters yesterday. I don’t have to worry about all that, that’s extra expense,” said Dixon.

Builders are becoming landlords by renting their housing developments. Diana Olick | CNBC


Company: cnbc, Activity: cnbc, Date: 2019-07-26  Authors: diana olick
Keywords: news, cnbc, companies, industry, fastest, rushing, singlefamily, investors, thing, trend, homes, renting, space, pradera, apartment, housing, growing, community, walters


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Weekly mortgage applications rise 3.6%, a sign of hope for the spring homebuying season

Mortgage application volume increased 3.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications to purchase a home increased 2 percent for the week — the first uptick in a month — a sign of optimism in the housing market. “After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago — showing some promise as we edge closer to the spring homebuying


Mortgage application volume increased 3.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications to purchase a home increased 2 percent for the week — the first uptick in a month — a sign of optimism in the housing market. “After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago — showing some promise as we edge closer to the spring homebuying
Weekly mortgage applications rise 3.6%, a sign of hope for the spring homebuying season Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: lisa rizzolo, getty images
Keywords: news, cnbc, companies, spring, rate, season, 36, homebuying, rise, mortgage, hope, according, sign, increased, volume, weekly, applications, singlefamily, week, sales, traffic


Weekly mortgage applications rise 3.6%, a sign of hope for the spring homebuying season

Mortgage application volume increased 3.6 percent last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Applications to purchase a home increased 2 percent for the week — the first uptick in a month — a sign of optimism in the housing market.

“After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago — showing some promise as we edge closer to the spring homebuying season,” said Joel Kan, MBA associate vice president.

Some real estate agents have reported surprise at better-than-expected traffic at open houses this month, and the new numbers seem to confirm those perceptions.

Still, overall volume was 2.3 percent lower than a year ago.

The biggest boost came from applications to refinance a home loan, which are far more sensitive to weekly interest rate moves. The 30-year fixed rate was essentially unchanged at 4.66 percent. Homeowners clearly saw an opportunity, as refinance applications increased 6 percent from the previous week. They were 8 percent lower than a year ago.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 4.56 percent from 4.48 percent, with points decreasing to 0.23 from 0.27 (including the origination fee) for 80 percent loans. The effective rate increased from last week.

The positive numbers in mortgage application volume are in line with this month’s homebuilder sentiment, which rose 4 points, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index. That index showed an increase in buyer traffic, sales expectations and current sales conditions in February.

Builders still point to a concern in affordability, however, which is at a 10-year low, according to the index’s data. There continues to be a critical shortage of affordable single-family homes for sale.

“Ongoing job creation and solid household formations will keep demand firm, but builders will continue to grapple with supply-side headwinds that will dampen more vigorous growth in the single-family sector,” said NAHB chief economist Robert Dietz.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: lisa rizzolo, getty images
Keywords: news, cnbc, companies, spring, rate, season, 36, homebuying, rise, mortgage, hope, according, sign, increased, volume, weekly, applications, singlefamily, week, sales, traffic


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Tax changes driving luxury NYC homeowners to Miami, says broker

Tax changes driving luxury NYC homeowners to Miami, says broker2 Hours AgoCNBC’s Robert Frank talks with Citadel’s Ken Griffin’s brokers, Tal Alexander and Oren Alexander, about a Miami estate that sold for $50 million. It is the most expensive single-family home ever sold in the Miami area, according to people familiar with the deal.


Tax changes driving luxury NYC homeowners to Miami, says broker2 Hours AgoCNBC’s Robert Frank talks with Citadel’s Ken Griffin’s brokers, Tal Alexander and Oren Alexander, about a Miami estate that sold for $50 million. It is the most expensive single-family home ever sold in the Miami area, according to people familiar with the deal.
Tax changes driving luxury NYC homeowners to Miami, says broker Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06
Keywords: news, cnbc, companies, homeowners, robert, alexander, tax, miami, singlefamily, nyc, oren, luxury, sold, tal, driving, talks, changes, broker


Tax changes driving luxury NYC homeowners to Miami, says broker

Tax changes driving luxury NYC homeowners to Miami, says broker

2 Hours Ago

CNBC’s Robert Frank talks with Citadel’s Ken Griffin’s brokers, Tal Alexander and Oren Alexander, about a Miami estate that sold for $50 million. It is the most expensive single-family home ever sold in the Miami area, according to people familiar with the deal.


Company: cnbc, Activity: cnbc, Date: 2019-02-06
Keywords: news, cnbc, companies, homeowners, robert, alexander, tax, miami, singlefamily, nyc, oren, luxury, sold, tal, driving, talks, changes, broker


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Home prices make smallest gains in nearly 4 years, but rents are hot

If fewer people are buying homes, especially first-time buyers, then they remain renters, which is boosting the market. Rent prices for single-family homes increased 2.9 percent annually in November 2018, according to CoreLogic. Demand for rental homes is now so strong, and supply so low, that rents have nowhere to go but up. Of course all real estate is local, and hot markets like Las Vegas, Phoenix and Orlando are seeing the highest rent gains for single-family homes. “For example, rent prices


If fewer people are buying homes, especially first-time buyers, then they remain renters, which is boosting the market. Rent prices for single-family homes increased 2.9 percent annually in November 2018, according to CoreLogic. Demand for rental homes is now so strong, and supply so low, that rents have nowhere to go but up. Of course all real estate is local, and hot markets like Las Vegas, Phoenix and Orlando are seeing the highest rent gains for single-family homes. “For example, rent prices
Home prices make smallest gains in nearly 4 years, but rents are hot Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: diana olick, scott mlyn
Keywords: news, cnbc, companies, homes, especially, markets, singlefamily, rentals, hot, nearly, rental, rent, rents, prices, smallest, gains


Home prices make smallest gains in nearly 4 years, but rents are hot

The slowdown in home sales and home price gains in most major U.S. markets is causing the opposite effect in the rental market, especially for single-family rental homes.

Home prices logged a 5.1 percent annual gain in November, the smallest gain since August 2015.

If fewer people are buying homes, especially first-time buyers, then they remain renters, which is boosting the market.

Rent prices for single-family homes increased 2.9 percent annually in November 2018, according to CoreLogic. That is up from 2.8 percent annual growth in November 2017.

Demand for rental homes is now so strong, and supply so low, that rents have nowhere to go but up. The gains are especially high for lower-end rental homes, up 3.8 percent annually in November. High-end rents, however are still gaining, up 2.6 percent annually compared with 2.3 percent gains in November 2017.

Of course all real estate is local, and hot markets like Las Vegas, Phoenix and Orlando are seeing the highest rent gains for single-family homes.

These markets were hardest hit during the housing crash more than ten years ago, as thousands of homes purchased by flippers using subprime mortgages defaulted on their loans. These cities had the highest foreclosure rates in the nation, and many of those foreclosures were purchased by large institutional investors and turned into rental properties.

Both Orlando and Phoenix are seeing strong employment gains at nearly five times the national rate. Consequently, demand for rentals is heating up.

Despite the gains, however, rents have still not seen the heat that the for-sale housing market has in the past few years.

“Long-term rent increases have been lower than long-term home price increases,” said Molly Boesel, principal economist at CoreLogic. “For example, rent prices increased 17 percent over the past five years, compared with a 32 percent increase in home prices over the same period. Additionally, lower-priced rentals and homes increase 1 ½ to 2 times faster than higher-priced rentals and homes.”

Vacancies for single-family rentals are very low and declined in November to 4.6 percent from 4.7 percent in October, according to Morningstar Credit Ratings. While part of that is seasonal, close to 79 percent of renters are renewing their leases, which is historically high.


Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: diana olick, scott mlyn
Keywords: news, cnbc, companies, homes, especially, markets, singlefamily, rentals, hot, nearly, rental, rent, rents, prices, smallest, gains


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US housing starts fall more than expected in September

Housing starts fell 5.3 percent to a seasonally adjusted annual rate of 1.201 million units last month, the Commerce Department said on Wednesday. Data for August was revised down to show starts rising to a rate of 1.268 million units instead of the previously reported pace of 1.282 million units. Economists polled by Reuters had forecast housing starts declining to a pace of 1.220 million units last month. They, however, remain below the level of single-family starts, suggesting limited scope f


Housing starts fell 5.3 percent to a seasonally adjusted annual rate of 1.201 million units last month, the Commerce Department said on Wednesday. Data for August was revised down to show starts rising to a rate of 1.268 million units instead of the previously reported pace of 1.282 million units. Economists polled by Reuters had forecast housing starts declining to a pace of 1.220 million units last month. They, however, remain below the level of single-family starts, suggesting limited scope f
US housing starts fall more than expected in September Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17
Keywords: news, cnbc, companies, mortgage, homebuilding, starts, units, expected, singlefamily, fell, housing, million, fall, pace, rate


US housing starts fall more than expected in September

U.S. homebuilding dropped more than expected in September as construction activity in the South fell by the most in nearly three years, likely held down by Hurricane Florence.

Housing starts fell 5.3 percent to a seasonally adjusted annual rate of 1.201 million units last month, the Commerce Department said on Wednesday. Data for August was revised down to show starts rising to a rate of 1.268 million units instead of the previously reported pace of 1.282 million units.

Starts in the South, which accounts for the bulk of homebuilding, tumbled 13.7 percent last month. That was the biggest decline since October 2015. Hurricane Florence slammed North and South Carolina in mid-September and flooding from the storm probably depressed homebuilding last month.

Building permits fell 0.6 percent to a rate of 1.241 million units in September. That was the second straight monthly decline in permits and suggested homebuilding is likely to remain tepid.

Economists polled by Reuters had forecast housing starts declining to a pace of 1.220 million units last month. Starts surged 29 percent in the Northeast and rose 6.6 percent in the West. They fell 14.0 percent in the Midwest.

The housing market has been a weak spot in a robust economy. Economists blame the sluggishness on rising mortgage rates, which have combined with higher house prices to make home purchasing unaffordable for some first-time buyers.

The 30-year fixed mortgage rate jumped 19 basis points to 4.90 percent last week, the highest level since mid-April 2011, according to data from mortgage finance agency Freddie Mac. The mortgage rate has risen about 91 basis points this year.

Single-family homebuilding, which accounts for the largest share of the housing market, decreased 0.9 percent to a rate of 871,000 units in September. Single-family homebuilding has lost momentum since hitting a pace of 948,000 units last November, which was the strongest in more than 10 years.

A survey on Tuesday showed confidence among single-family homebuilders rose in October, but builders said “housing affordability has become a challenge due to ongoing price and interest rate increases.”

Permits to build single-family homes rose 2.9 percent in September to a pace of 851,00 units. They, however, remain below the level of single-family starts, suggesting limited scope for a strong rebound in homebuilding.

Starts for the volatile multi-family housing segment plunged 15.2 percent to a rate of 330,000 units in September. Permits for the construction of multi-family homes declined 7.6 percent to a pace of 390,000 units.


Company: cnbc, Activity: cnbc, Date: 2018-10-17
Keywords: news, cnbc, companies, mortgage, homebuilding, starts, units, expected, singlefamily, fell, housing, million, fall, pace, rate


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