Financial Friday

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January 26, 2018

Homebuilding Ends 2017 Weaker Than Expected

Residential housing starts fell 8.2% to 1.19 million in December, the biggest drop since November 2016. Single-family home starts fell 11.8% to 836,000 and multifamily rose 1.4% to 356,000. However, 2017 still ended 2.4% over 2016 starts.

Housing permits fell 0.1% to 1.302 million. Permits to build single-family homes rose 1.8% to 881,000, the fastest since August 2007, while permits for multifamily homes fell 3.9%.

2018 Predicted To Be Strong For Homebuilders

While 2017 didn’t end as strongly as expected, it was the best year for single-family housing since 2007, and the good news is, 2018 looks as if it’s going to be every bit as good, if not better!

Trulia chief economist Ralph McLaughlin summed up 2017 and looked ahead through 2018:
When it comes to new home building activity, 2017 turned out to be the best year for permits, starts, and completions in a decade. The continued climb was led by single-family homes, which was exactly the type of new inventory frustrated homebuyers yearned for last year. Elevated levels of homebuilders’ confidence combined with persistent low inventory should make 2018 a ripe year for single-family construction to grow.

What Facebook Newsfeed Announcement Means For Realtors®

Facebook recently announced they would be making updates to the News Feed to feature more posts from family and friends over businesses. So, what does this mean for Realtors® wanting to develop relationships and stay connected with clients and attract new clients? Social Media influencer in the real estate industry, Katie Lance, has advice for Realtors® looking to stand out from the competition: interact with five past clients each day, create and share great content, share tips on Facebook Live and develop a Facebook ad strategy.

Avoid Pitfalls of Working With Friends & Family

Family and friends may be your primary source of business and referrals, especially when you’re starting out, so it’s important to know how to avoid pitfalls, so you’re still speaking after the deal.

  • Make sure you’re the right agent for the job. How well do you know the local market?
  • Disagreements can be sticking points. Home buyers and sellers can have a difficult time detaching emotionally, which can make it difficult to disagree on listing price, comps, repairs and decluttering.
  • Be clear on your commission fee. Many people might want to hire a Realtor® they know to get a discounted commission fee. Be upfront about your commission before you accept the listing.

Five Types of Insurance Every Builder Should Have

Here are five insurance coverages builders should secure to protect their business properly.

  1. General Liability
  2. Professional Liability
  3. Inland Marine or Equipment Coverage
  4. Commercial Auto Liability
  5. Workers’ Compensation

Could Modular Home Provide the Solution To The Market Shortage?

There are about 80 manufacturers of HUD-code, modular and prefab houses and components operating more than 200 factories in the U.S. While factory-built modules are being set and completed within subdivisions, it’s still very much a scattered-lot business and highly fragmented among hundreds of mostly small builders.

In 2017, for the first time in five years, modular-home shipments approached 15,000 or 8% more than in 2016. The Mid-Atlantic and South Atlantic had the greatest demand for modular homes, followed by the Midwest (17%) and West (13%).

Unfortunately, modular home manufacturers are facing the same skilled labor shortage as traditional home builders. Additionally, modular homes must also overcome common homebuyer perception that they are container-like double-wides that populate mobile-home parks rather than the stylish and sturdy homes pictured below.

modular homes

 

Information Courtesy of Jason Browning – Certainty Home Loans 

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