Alabama’s real estate market shows continued growth, with July home sales up 0.9% from last year and 13.1% from June, driving a total sales volume of $1.51 billion. With rising median home prices and a robust economic impact, the market’s upward trend is expected to persist, fueled by strong demand and potential interest rate reductions. According to Yellow Hammer, home sales reached 6,136 in July, up 0.9% from last year and a significant 13.1% from June. The total sales volume surged to $1.51 billion, marking an 8.6% increase from July…
Read MoreDay: September 4, 2024
Home Building Geography Index (HBGI)
The Q2 2024 Home Building Geography Index shows continued growth in single-family construction due to limited inventory and pent-up demand, while multifamily construction declines amid tighter financial conditions and high apartment construction levels. Both sectors face ongoing challenges from labor and supply shortages, along with higher mortgage rates. According to the NAHB, the Home Building Geography Index (HBGI) is a quarterly measurement of building conditions across the country and uses county-level information about single-family and multifamily permits to gauge housing construction growth in various submarkets. The HBGI for the second…
Read More9 Emerging Home Building Trends
Homebuilders are adapting to material shortages and rising costs by embracing new trends such as prefinished engineered floors, which are cost-effective and structurally sound, and mixed-use spaces to address the shortage of affordable housing. Other emerging trends include dopamine decor for mental well-being, all-electric homes for environmental and cost benefits, and a growing preference for single-story homes due to their accessibility and aesthetic appeal. According to U.S. News, homebuilders have faced their share of challenges in recent years. Material shortages and increased costs have forced builders to be more mindful…
Read MoreU.S. Home Prices Forecast to Rise Modestly as Fed Cuts Rates
U.S. home prices are expected to rise modestly in 2024 despite tight supply and anticipated Federal Reserve rate cuts, with affordability improving but still strained. Prices remain over 50% higher than pre-pandemic levels, driven by homeowners holding onto low mortgage rates, and are projected to increase by a median of 5.4% next year. U.S. home prices will rise relatively modestly this year and next despite tight supply and expected U.S. Federal Reserve interest rate cuts, according to housing analysts polled by Reuters who said purchasing affordability will improve but would…
Read MoreFraming Lumber Prices
Lumber prices have risen for seven consecutive weeks, with the framing lumber composite price increasing by 0.8% as of Aug. 30, 2024, but prices remain 7.4% lower than a year ago. Volatility in lumber prices, influenced by demand, tariffs, and supply-chain issues, continues to impact the cost of new homes, contributing to declining housing affordability. The NAHB explains that it continually tracks the latest lumber prices and futures prices, and provides an overview of the behaviors within the U.S. framing lumber market. The information is sourced each week using the…
Read MoreU.S. Construction Spending Falls More Than Expected in July
U.S. construction spending fell 0.3% in July, with a significant 1.9% drop in single-family homebuilding due to higher mortgage rates and excess inventory. Private non-residential construction also decreased by 0.4%, while public construction spending edged up slightly by 0.1%. According to Reuters, U.S. construction spending fell more than expected in July as higher mortgages and increased supply weighed on single-family homebuilding. The Commerce Department’s Census Bureau said on Tuesday that construction spending dropped 0.3% after being unchanged in June. Economists polled by Reuters had forecast construction spending dipping 0.1%. Construction…
Read MoreWelcome to the Dawn of the Great Renovation
Forbes predicts the “Great Renovation” from 2025 to 2035 will transform America’s residential landscape, as 50 million homes change hands, driving over $3 trillion in renovation needs. Fueled by aging housing stock, low new construction rates, and a wave of older homeowners selling, this movement presents immense opportunities for real estate professionals, home service companies, and innovative, eco-friendly, and smart home solutions to thrive. Forbes talks about the dawn of the Great Renovation, a transformative decade set to redefine America’s residential landscape from 2025 to 2035. This movement isn’t a…
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