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Another US Housing Crisis is in the Wings
This was the title of the lead story in Sunday’s Denver Post as written by The NY Times. This story was based off of a report released last week titled “The State of the Nation’s Housing 2021” written by Harvard’s Joint Center for Housing Studies. Their report cites, “Americans are struggling with soaring home prices,…
A Great Sign For Buyers
I have spoken to several Realtors who told me the weekend of June 12th-13th was very slow for their listings with few showings and even fewer offers. I also heard this from 2 Realtors at SMDRA’s Fuze Meeting on Friday when I was discussing the May Stats. Further, that weekend we had no clients write…
Is Now a Good Time to Buy a Home?
Logan Mohtashami for the Housing Wire wrote a great story on June 1st and I want to share some of it with you. First, when mortgage rates exceed 4% housing demand will weaken and months of inventory (days of inventory in our case) will increase causing home price increases to moderate. Second home prices have…
Why More New Homes Will Not Be Built
Logan Mohtashami wrote a great article for Housing Wire last week on “Why We Can’t Build Our Way Out of This Hot Housing Market.” He reminded us that many home builders went out of business a dozen years after they over-built and those remaining homebuilders all remember that lesson. Thus, “Builders have learned to tightly…
Only 35% of Homebuyers Believe Now is a Good Time to Buy a Home
Every month Fannie Mae surveys about 1000 Americans on their attitudes and beliefs about both buying a home and selling a home. In May just 35% of homebuyers believe now is a good time to buy a home and 56% believe now is a bad time to buy a home. Why? “Consumers appear to be…
Inflation is Soaring
The Consumer Price Index for May was released this morning with inflation hitting 0.6% above April prices. Year over year the CPI is up 5%, the biggest increase since 2008. Even the Core CPI, which excludes the volatile food and energy sectors, saw prices soar by 0.7% from April and the Core CPI rose 3.8%,…
Strong Jobs Report Equals Inflation
The May Jobs Report was released last Friday with these results- · Our economy added 559k new jobs in May. · The household survey showed 444k new people found jobs and the labor force shrank by 53k. This caused the unemployment rate to drop to 5.8% from 6.1%. · The U-6 Rate dropped to 10.2%…
Why Low Interest Rates Are Hurting the Poor
Charles Gave, co-founder of Gavekal is one of the top institutional investment advisors in the world and I love reading his articles and his article on April 26th was titled “Low Rates are Socially Regressive.” He believes that central bankers “relying on low rates to stimulate structural growth is about as smart as imposing rent…
Why It’s So Hard to Buy a Home in Denver
Redfin recently release their first quarter report on home purchases by RE investors across the country and it showed that purchases by investors increased by 2.7% in the first quarter after dropped for the last 3 quarters of 2020. In metro Denver homes purchased by investors increased by 16.8% in the first quarter and that…
First Step Towards Metro District Reform
Senate Bill 21-262 easily passed the Senate on May 19th to “reform” metro districts. However, this bill is the bill written by the developers and home builders through their Metro District Education Coalition, thus “reform” is possibly too strong of a word. Here is what this bill requires- · Requires home builders to disclose their…
The Other Side of Inflation
Now here’s the other side of the inflationary argument from Van Hoisington and Lacy Hunt whom I greatly admire and respect. They believe that inflation will be short-lived this year and inflation will not average 2% for the year which is the Fed’s goal. Why? · Inflation is a lagging indicator. · Productivity will rebound vigorously pushing…
A New Modular Home Company
A long-term general contractor is trying to turn the home construction business on it’s head with his new company S2A Modular, a California-based modular home building company that aims to build homes in 35 factories across the country. And each home built will be net zero energy and will feature organic building materials. He believes…
