Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

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In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

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Construction spending ticks up 0.1% in July

Residential construction spending rises 0.6% from the previous month

Spending on U.S. construction during July was estimated at a seasonally adjusted annual rate of $1.30 trillion, rising 0.1% from the revised June estimate of $1.29 trillion, U.S. Census Bureau said. July’s spending was 2.7% below a year earlier.

Spending on private construction was at a seasonally adjusted annual rate of $963.1 billion, 0.1% below the revised June estimate of $963.7 billion, and 4.8% below a year ago.

Of that, residential construction spending was at a seasonally adjusted annual rate of $506.7 billion in July, which is 0.6% above the revised June estimate of $503.5 billion but 6.6% down from a year ago.

A measure of homebuilder confidence in August revealed that although the construction industry's outlook is improving, many builders still see affordability concerns as a major hurdle for production. National Association of Home Builders/Wells Fargo Housing Market Index measuring current sales conditions inched forward to 73 points from 71 points, while buyer traffic rose to 50 from 48. However, expectations over the next six months fell to 70 from 71. 

NAHB Chief Economist Robert Dietz said even as builders try to rein in costs, home prices continue to outpace incomes.

"The current low mortgage interest rate environment should be getting more buyers off the sidelines, but they remain hesitant due to affordability concerns,” Dietz said. “Still, attractive rates should help spur new home purchases in large metro suburban markets, where approximately one-third of new construction takes place." 

“Builders report solid demand for single-family homes,” NAHB Chairman Greg Ugalde said. “However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes."

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