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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Investors finally embrace big single-family rental companies a decade after the financial crisis

In the early days, the going was rough for some, as investors were not impressed with initial returns nor the longevity of these rental REITs. “This market went through in three years what it took multifamily 25 years to do. Blackstone’s President and Chief Operating Officer, Jonathan Gray, who was global head of real estate at the time, never seemed to see the single-family rental market as a short-term play. While this new public asset class is far from mature, it is continuing to expand and t


In the early days, the going was rough for some, as investors were not impressed with initial returns nor the longevity of these rental REITs. “This market went through in three years what it took multifamily 25 years to do. Blackstone’s President and Chief Operating Officer, Jonathan Gray, who was global head of real estate at the time, never seemed to see the single-family rental market as a short-term play. While this new public asset class is far from mature, it is continuing to expand and t
Investors finally embrace big single-family rental companies a decade after the financial crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-11  Authors: diana olick
Keywords: news, cnbc, companies, today, investors, companies, financial, decade, thing, embrace, million, singlefamily, big, market, asset, finally, homes, multifamily, housing, lets, rental, crisis


Investors finally embrace big single-family rental companies a decade after the financial crisis

In the early days, the going was rough for some, as investors were not impressed with initial returns nor the longevity of these rental REITs. Early innovators, like Laurie Hawkes, who co-founded Arizona-based American Residential Properties and grew its portfolio to nearly 9,000 homes, saw tremendous potential in the long-term play.

“This market went through in three years what it took multifamily 25 years to do. The ability to raise growth capital was the hardest thing to do,” said Hawkes in an interview after her company’s merger with American Homes 4 Rent in 2015.

Blackstone’s President and Chief Operating Officer, Jonathan Gray, who was global head of real estate at the time, never seemed to see the single-family rental market as a short-term play.

“Our focus is let’s perfect the model. Let’s get a world-class management team. Let’s have really clean simple metrics that the market can understand,” Gray said in an interview with CNBC in July 2015.

While this new public asset class is far from mature, it is continuing to expand and to profit, even as the fundamentals of the housing market change again. These companies were an outgrowth of a crisis, when home prices and the homeownership rate both saw record drops in a short period of time.

Homeownership is now growing, and home prices, just six years after hitting bottom, are now higher than they were at their peak in 2006. Still, rental demand continues to be strong for both single- and multifamily units.

“The way people are making choices today, there’s somewhere between 60 and 65 million people between the ages of 20 and 35 that are delaying the decisions like homeownership, and choosing the opportunity to lease a home, or an apartment in a local neighborhood, delaying those decisions are impactful to our business model,” said Tanner.

But unlike in the multifamily space, single-family rental companies have the advantage of being able to move with the housing cycles, profiting both from their income and their assets.

“Sometimes you have an asset that might be worth more in an end-user market than it would be in the rental space, and that’s just a very easy thing for us. U.S. housing is one of the most liquid asset classes in the world, and it’s a very easy thing for us to on the margin be selling and buying with our portfolio today,” he said.

Year to date, Invitation homes acquired 453 homes for $132.2 million, including estimated renovation costs, and sold 599 homes for gross proceeds of $132.0 million,” according to company filings.


Company: cnbc, Activity: cnbc, Date: 2018-09-11  Authors: diana olick
Keywords: news, cnbc, companies, today, investors, companies, financial, decade, thing, embrace, million, singlefamily, big, market, asset, finally, homes, multifamily, housing, lets, rental, crisis


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Single-family home rental sector thriving

Single-family home rental sector thriving5 Hours AgoCNBC’s Diana Olick reports that the single-family rental trade was meant to be short-term after the financial crisis, but the sector is thriving.


Single-family home rental sector thriving5 Hours AgoCNBC’s Diana Olick reports that the single-family rental trade was meant to be short-term after the financial crisis, but the sector is thriving.
Single-family home rental sector thriving Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-11
Keywords: news, cnbc, companies, trade, meant, singlefamily, reports, thriving, thriving5, rental, shortterm, sector, olick


Single-family home rental sector thriving

Single-family home rental sector thriving

5 Hours Ago

CNBC’s Diana Olick reports that the single-family rental trade was meant to be short-term after the financial crisis, but the sector is thriving.


Company: cnbc, Activity: cnbc, Date: 2018-09-11
Keywords: news, cnbc, companies, trade, meant, singlefamily, reports, thriving, thriving5, rental, shortterm, sector, olick


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Housing tipping back to a buyer’s market as sellers cut prices

After several years of rich home price gains, the market appears to have found a limit to what people can afford. Sellers are finally responding by lowering prices more often. As the housing market recovered from its epic crash in the last decade, home prices began to gain slowly. In addition, millions of single-family homes lost to foreclosure were purchased by investors and turned into single-family rentals, further depleting the for-sale housing stock. While Terrazas admits it is too soon to


After several years of rich home price gains, the market appears to have found a limit to what people can afford. Sellers are finally responding by lowering prices more often. As the housing market recovered from its epic crash in the last decade, home prices began to gain slowly. In addition, millions of single-family homes lost to foreclosure were purchased by investors and turned into single-family rentals, further depleting the for-sale housing stock. While Terrazas admits it is too soon to
Housing tipping back to a buyer’s market as sellers cut prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-16  Authors: diana olick
Keywords: news, cnbc, companies, prices, price, singlefamily, demand, zillow, cut, tipping, sellers, starting, terrazas, market, housing, buyers


Housing tipping back to a buyer's market as sellers cut prices

After several years of rich home price gains, the market appears to have found a limit to what people can afford. Sellers are finally responding by lowering prices more often.

Approximately 14 percent of all listings in June saw a price cut, that’s up from a recent low of 11.7 percent at the end of 2016, according to a new report from Zillow. In addition, home price growth is slowing in nearly half of the 35 largest U.S. metropolitan markets.

Rising mortgage rates and affordability are behind the change. As the housing market recovered from its epic crash in the last decade, home prices began to gain slowly. And then they suddenly took off in the last few years.

The simple reason was supply and demand. As millennials aged into their homebuying years, homebuilders did not and are still not meeting the rising demand. In addition, millions of single-family homes lost to foreclosure were purchased by investors and turned into single-family rentals, further depleting the for-sale housing stock. The market was thus suffering a critical shortage, just as demand was taking off. Prices had nowhere to go but up. Until now.

“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly,” said Zillow senior economist Aaron Terrazas. “A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsize price gains in recent years.”

While Terrazas admits it is too soon to call this a buyer’s market nationally, “the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”


Company: cnbc, Activity: cnbc, Date: 2018-08-16  Authors: diana olick
Keywords: news, cnbc, companies, prices, price, singlefamily, demand, zillow, cut, tipping, sellers, starting, terrazas, market, housing, buyers


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US housing starts total 1.35 million in May, vs 1.31 million starts expected

Housing starts jumped 5.0 percent to a seasonally adjusted annual rate of 1.350 million units last month, the Commerce Department said on Tuesday. Data for April was revised slightly to show starts falling to a rate of 1.286 million units instead of the previously reported pace of 1.287 million units. Building permits fell 4.6 percent to a rate of 1.301 million units, the lowest level since September 2017. Economists polled by Reuters had forecast housing starts rising to a pace of 1.310 million


Housing starts jumped 5.0 percent to a seasonally adjusted annual rate of 1.350 million units last month, the Commerce Department said on Tuesday. Data for April was revised slightly to show starts falling to a rate of 1.286 million units instead of the previously reported pace of 1.287 million units. Building permits fell 4.6 percent to a rate of 1.301 million units, the lowest level since September 2017. Economists polled by Reuters had forecast housing starts rising to a pace of 1.310 million
US housing starts total 1.35 million in May, vs 1.31 million starts expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-19  Authors: getty images
Keywords: news, cnbc, companies, starts, homebuilding, month, rate, vs, total, 135, 131, permits, singlefamily, units, million, housing, pace, expected


US housing starts total 1.35 million in May, vs 1.31 million starts expected

U.S. homebuilding surged to near an 11-year high in May amid an acceleration in both single-family and multi-family home construction, but a second straight monthly drop in permits suggested housing market activity will remain moderate.

Housing starts jumped 5.0 percent to a seasonally adjusted annual rate of 1.350 million units last month, the Commerce Department said on Tuesday. That was the highest level since July 2007. Data for April was revised slightly to show starts falling to a rate of 1.286 million units instead of the previously reported pace of 1.287 million units.

Building permits fell 4.6 percent to a rate of 1.301 million units, the lowest level since September 2017. Economists polled by Reuters had forecast housing starts rising to a pace of 1.310 million units last month and permits declining to a rate of 1.350 million units.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 3.9 percent to a rate of 936,000 units last month.

Single-family home construction rose in the Northeast and Midwest, but fell in the South and West. 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.


Company: cnbc, Activity: cnbc, Date: 2018-06-19  Authors: getty images
Keywords: news, cnbc, companies, starts, homebuilding, month, rate, vs, total, 135, 131, permits, singlefamily, units, million, housing, pace, expected


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