Monthly Archives: June 2015
Business Insider reported that 72% of Americans, polled by the Wells Fargo Housing Index Survey, say that now is a good time to buy a home. That’s up from 68% in 2014. Surprise, we are doing more than just talking. New Construction Permits jumped 11.8%, Market Insider said, the highest level since 2007. That’s annual rate of 1.28 million new homes. Apartment construction is leading the way. With predicted demand at 1.5 million, there is still room for more housing expansion.
Fortune Magazine reported, June, that all stats now confirm housing is back to pre-recession levels. “The increasing level of new construction is entirely consistent with the strong demand and corresponding price gains…in both rents and home prices . . . Builders are more confident… the last time that NAHB’s housing market index…was higher than yesterday’s reported number, was 2005… Likewise, apartment owners are encouraged by lower vacancies and higher rents.”
Wednesday, The Federal Reserve did not raise key interest rates. They did say they expect to bump them this fall is the economy stays on track.
Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray said “The CFPB will delay the effective date of the Know Before You Owe rule until October 1, 2015″ These new disclosure rules were part of the Dodd-Frank mortgage lending changes that have been enacted since 2010.
The digital media advertising market is worth hundreds of billions of $. Coordinated, managed, hacking has resulted in the takeover of millions of unsuspecting computers. The machines are secretly, remotely controlled and programmed to create digital traffic for paying customers who need to justify their ad rates. This not well publicized and little known fact was revealed by Ad Age. Major player Google is on the case and working to catch, expose and eliminate this scourge. They have the most to lose if media buyers and the public learn about this manipulation and stop or reduce ad spending on unproductive traffic that doesn’t convert to sales. Why pay per click with no resulting sales??
May 26, 2015, Case Schiller released their March report of price growth for the top 20 US housing markets. Overall prices were up an average of 5%. San Francisco, Denver, Dallas, Miami and Tampa led the way.
June 12, Morgan Stanley, said, Housing has Wall Street Psyched About the Economy. It is positioned as the economic engine that will boost the economy in Q3 & Q4. Bolstered by higher than expected new jobs growth, Jonathan Smoke NAR said we are beginning to see the return of first time home buyers.
- Existing home sales are 6.6% higher for the first three months of 2015 than the Q1 2014. All regions of the country have grown.
- New home sales have outpaced growth over the past two years. Also, they are well below their average levels as the housing bubble formed in the years leading up to 2007.
- Home prices have risen in the first half of the year. Morgan Stanley estimates growth of 4.1% – 6.8%.
- Starts and permits are slightly higher for Q2, compared to 2014 Q2 (+3.9%). And the index of building permits, a combination of new construction and renovations permits, is up 8%.
June 4-5, hundreds of ULI Industry leaders gathered in Ponte Vedra Beach at the Sawgrass Marriott to network and plan future development growth around the South Eastern, U.S. Florida product councils, mirroring the National model, dined together, June 3 and then met the next morning.
The Community and Housing Development Council started with a tour of nearby mater planned community, Nocatee‘s 75 acre amenity park. Tour leader, Parc Group President Rick Ray, explained how important their water feature was in making it the 3rd best selling master planned community in the nation. Legisative updates, Capital and Financing rounded out the council’s agenda.
Notable key note speakers included Global Futurist Jack Uldrich, who explained how important technology is to development. The self diving car for instance will nearly eliminate the need for vast parking lots soon. Mike Belmont, President, Minto Communities moderated one of the concurrent sessions on “Residential Trends Driving Profits”. Other general sessions included a look at Cuba and it’s potential for development as well as “What’s Next-Peeking Around the Corner” with presentations by Sydney Kitson, CEO Kitson & Partners and Peter Rummell, Chairman Rummel Munz Partners. Kitson outlined the status of their 19,000 acre, Babcock Ranch, Ft. Myers and its green partnership with FP&L that promises almost no carbon footprint largely due to solar, wind and other innovations. Rummell introduce a “Healthy Town” project being developed on a reclaimed greenfield in Jacksonville, where unintentional exercise drives residents to all around wellness: mind, body, soul & social. They have a base camp as the community nucleus, not a clubhouse.