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Builders constructing more single-story homes

Posted by Mehran Aram on Sun, Oct 6, 2019 @ 08:10 AM

With more and more retirees choosing to age in the place, the popularity of single-family homes with only one story is growing. While two-story homes are still more popular among homebuilders and buyers, the gap is slowly shrinking. The National Association of Home Builders reports that the share of new homes with two or more stories declined from 55 percent in 2017 to 53 percent in 2018. Single-story homes increased in volume during that same period, growing from 45 percent of newly constructed homes to 47 percent.

Millennials, the fastest growing age bracket of homebuyers, have a preference for two-story homes according to the NAHB. 55 percent of Millennial respondents to a survey report wanting a two-story home compared to 35 percent who want a single-story. Meanwhile, 80 percent of Baby Boomers, not wanting to climb stairs, said they prefer to live in a single-story home.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: National Association of Home Builders, single family homes, Mortgage rates, Home Construction

Home building climbs to highest level in 11 years

Posted by Mehran Aram on Sun, Sep 22, 2019 @ 08:09 AM

The Commerce Department announced last week that home building in the U.S. increased in August to its highest level since June 2007. Home construction has lagged behind demand for new homes for several years resulting in skyrocketing home prices. This latest data is a positive mark on the overall housing market which has been shrouded with uncertainty as more economists speculate a recession may be on the horizon.

Housing starts rose 12.3 percent last month to a seasonally adjusted annual rate of 1.364 million units. This far surpasses the 4.1 percent increase economists surveyed by The Wall Street Journal had predicted for August.

Low mortgage rates are likely to sustain the high demand levels throughout the winter months and well into next year. Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Housing Market, new homes, Housing Starts, Mortgage rates, Home Building, Home Construction

Home construction rates show no sign of improvement

Posted by Mehran Aram on Fri, Sep 13, 2019 @ 11:09 AM

The national home ownership rate, property values and sales are all elements of the housing market that have either returned to pre-recession levels or are making strides in that direction. Despite this, the rate at which new homes are being built in the U.S. are far from a full recovery. In fact, a new analysis of market trends shows that the depressed construction rates may continue to linger for quite some time.

According to Zillow, housing starts are predicted to remain below historical averages through 2022 or later. Only one-in-five panelists in a survey expect single-family home starts to return to one million – a benchmark that has not been reached since 2007. More than 25 percent said it may happen by 2021 and 54 percent believe it will be at least another three years or more.

The high price of buildable land, raw materials and labor have plagued the residential construction industry for years, leading to the lowest inventory levels this century.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Zillow, homeownership, single family homes, Housing Starts, Mortgage rates, Homeownership Rate, Home Construction

Home builder confidence

Posted by Mehran Aram on Thu, Jun 20, 2019 @ 16:06 PM

A slight gain in the confidence levels among home builders in the U.S. last month, was undone by a 2 point decline in June. Rising construction costs have long been cited as the major reason builders have been weary. Confidence levels are measured according to The National Association of Home Builders’ index.

“While demand for single-family homes remains sound, builders continue to report rising development and construction costs,” said NAHB Chairman Greg Ugalde.

In addition to grappling with rising costs, a shortage of skilled labor has also depressed confidence levels among the nation’s home builders. Despite this month’s drop, the index’s component measuring future conditions remains positive with a reading of 70.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Construction, Home Builders, single family homes, Mortgage rates, National Association of HomeBuilders, condo, condominium, Home Builder Confidence, Home Construction

Home building on the rise

Posted by Mehran Aram on Sun, May 19, 2019 @ 07:05 AM

Single-family home construction increased in the U.S. in April, driving housing starts up. Overall housing starts climbed 5.7 percent over the last month according to data from the Department of Commerce. The volume of construction permits also increased, a signal that housing starts in the coming months will be positive as well.

Low unemployment, a strong economy and lower mortgage rates have produced robust buyer-demand for housing, but rising material costs and labor shortages have hindered growth over the past year. These latest numbers suggest that home builders are not being deterred by these less than favorable conditions.

Experts predict that should demand continue to remain high, housing starts in particular may show resilience even if the housing market experiences a broader slowdown.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Home Builders, single family homes, Housing Starts, U.S. Department of Commerce, Mortgage rates, Home Building, Low Unemployment, Construction Permits, Home Construction, Strong Economy, Department of Commerce