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NAHB: Builder Sentiment Improves in August

Aug 18, 2016 | Home Building Tips

Buyer Beware: 4 Common Problems Home Sellers Try to HideAccording to the National Association of Home Builders, August home builder sentiment met analyst expectations and rose by two points to a reading of 60; July’s reading was revised downward to 58. Two out of three components used in calculating the Home Builder Index were higher. Builder sentiment concerning current housing conditions rose two points to 65. Builders were also more confident about housing market conditions within the next six months; August’s reading was one point higher at 56. Builders were less confident about buyer traffic in new housing developments. August’s reading slipped one point to 44.

Any reading above 50 indicates that a majority of builders surveyed were confident in market conditions; readings for buyer traffic have not reached 50 since 2005.

Building More Homes Seen as Solution to Persistent Home Shortage

Shortages of available homes have caused demand for homes to surge in recent months. As demand increases, home prices rise. This thwarts positive conditions including low mortgage rates and recent reports of rebounding job creation. If builder confidence rises, it follows that builders will expand construction, but builders also cited factors including regulatory obstacles, a lack of qualified labor and shortages of land available for development as ongoing concerns.

Regional Confidence Readings Mixed

Regional readings for builder confidence were mixed; builder confidence in the Northeast increased by two points to 41. In the South, builder confidence also rose two points to 63. Builder sentiment in the West was unchanged at 69 while builder sentiment in the Midwest fell two points to 55.

Although growing builder confidence considered positive in light of home shortages, analysts said that single-family housing starts remain well below historical levels.

In related news, NAHB reported that readings for the 55 plus housing market index increased by one point to 57 as compared to the first quarter reading and was unchanged as compared to the second quarter of 2015. As with the general HMI, any reading over 50 indicates that more builders than fewer are confident in market conditions for 55 plus housing markets.

4 Ways A Real Estate Agent Can Help During The New Construction Process

Nov 14, 2013 | Home Building Tips

4 Ways A Real Estate Agent Helps During Your New Construction ProcessYou’ve found the perfect new development and think your children would love swimming in the community pool and riding bikes on the wide streets. The new construction’s sales agent gave you a price and made a strong pitch urging you to buy immediately.

The question is, should you sign on the dotted line or bring in a real estate agent to handle the contract and negotiations?

The first thing you need to realize is that the new construction sales agent represents the developer and has their investment in mind. A real estate agent is someone who will be on your side. They’ll represent your interests and can help you.

Go Through The Process

If you’re looking at a specific development, the sales agent might offer you a discount if you sign without using a real estate agent. This is because the sales commission for the real estate agent usually comes out of the seller’s pocket.

However, most developers have this figure built into their price, so you might as well enlist a real estate agent’s help and advice — it’s free after all.

Decide If It’s A Smart Investment

Developers are invested in the property they’re trying to sell. They need to unload every lot in order to make a return on their investment, so it’s likely they don’t have your best interests in mind. A real estate agent will know what homes sell for in the area, what the school district is like and if it’s a good neighborhood. They’ll be able to recognize if it’s a good fit for your family.

Negotiate With Insider Knowledge

A real estate agent knows their market and usually the local gossip. If they’ve heard that a developer is willing to entertain low offers, then they might have clients that could buy in a neighborhood thought to be out of their price range. Also, they’ll know which upgrades a developer is likely to include in order to make the sale.

Decipher Confusing Paperwork

Buying property comes with a lot of paperwork. Contracts can be extremely confusing, so it’s always a good idea to have a seasoned veteran read over yours. A real estate agent has a great deal of experience with complicated contracts and knows what phrasing should be included and where sellers slip in sneaky wording.

From making sure the new construction is right for you to ensuring you get the upgrades you want and examining the contract with a fine-toothed comb, a real estate agent will represent your interests and get you the best deal.