March 16, 2018
The Correlation Between Home Builder Confidence & Home Buyer Confidence
The latest The Z Report from Zelman & Associates looks at the correlation and the implications of various consumer confidence and sentiment benchmarks.
One of the intriguing conclusions Zelman derives from the variously sourced consumer sentiment data points is that confidence directionals that run counter to the interests of some parts of the housing spectrum may favor others. What’s a negative for existing home sales and apartment rentals–vis a vis confidence–may be a positive for new home sales. Here’s the Zelman conceit:
“In summary, paraphrasing the hypothetical entry-level housing consumer, ‘prices are rising because inventory is tight, which is frustrating, and interest rates are starting to edge higher, but mortgage credit is available, affordability is still good and I’m tired of paying higher rent every year. So I’m still interested in buying, but it is looking like I should start considering new construction.”
So, a potential entry-level home buyer’s confidence, rationale, and current means of cobbling down payment and carrying costs–even if things are a little tight at the outset–match up almost identically to a home builder’s confidence as he or she eyes that tract of lots in a path-of-growth submarket that might be attractive to the entry-level buyer. Rates, prices, and tax incentives matter only insofar as how they each relate to confidence that there’ll be more than enough means to cover for all of their increase with earnings and even better expectations.
Realtors: This is how your buyer wants you to contact them
Homebuyers are increasingly looking to texting as a way to communicate during the home buying process. However, certain topics are off-limits for this method of communication, according to a new study from Ellie Mae.
Respondents were the most open to receiving text messages for appointment reminders and deadline reminders. Also, 29% of homebuyers thought it was appropriate to send promotions or special programs through text. Another 26% said it would be ok to send happy birthday wishes and just 19% said it was ok to use texting just to say hello.
At Certainty Home Loans, we want to provide timely updates throughout the loan process to our borrowers, Realtors and builders using their preferred communication channels, so we offer messaging via phone, email and text.
Amateur vs. Pro Home Staging Photos
Poor lighting, crooked lines, and awkward angles make listing photos look amateurish and rooms appear small. Use these side-by-side photo comparisons to help your sellers see the value in using a professional photographer to present their home in the best light.
If you or the homeowners must take the photographs, take the advice of these professional photographers to correct the six most common mistakes when shooting listings.
Home Depot Commits $50M For Construction Skills Training
The Home Depot Foundation will donate $50 million to the nonprofit Home Builders Institute to train military veterans, active U.S. Army soldiers who will soon be leaving the service, high school students and disadvantaged young people in the Atlanta area over the next 10 years.
The HDF gift will allow the HBI to graduate 2,000 more students a year, increasing the program’s certificate holders by 60% annually. The students will be instructed in carpentry, framing, electrical, plumbing and other trades for careers in the construction industry.
A survey published by the National Association of Home Builders last April found that out of the 74% of adults ages 18 to 25 who knew what career they wanted to pursue, however, only 3% had chosen construction, primarily for its pay potential (80%) and the ability to learn valuable skills (74%).
Builder Uses Crowdsourced Input On Its Home Designs
When you’re designing the interior of a model home, do you select conservative colors or trendy colors? Would you consider asking the general public to weigh in?
Taylor Morrison Home is offering consumers the chance to influence the designs of several model homes through its “myModel Home Project.” Participants can vote on design elements such as flooring, cabinets, paint colors, lighting fixtures, backsplashes and countertops for model homes in Dallas, Houston, Phoenix, Sacramento and the San Francisco Bay area. The most popular items will be built into the model homes.
Taylor Morrison had previously built five model homes with crowdsourced design decisions, beginning with its first online voting campaign in 2015, when more than 30,000 people voted. Among the models built with the help of voters is the Florence model at Avalon at Sienna Plantation in Houston, which included selecting (from left to right) media room seating, a boy’s bedroom painted detail, kitchen cabinets, and the master bedroom ceiling.