Tag Archive for ‘housing economics’

Housing Affordability Falls to Lowest Level Since Great Recession

Rising mortgage rates, high inflation, low existing inventory and elevated home prices contributed to housing affordability falling to its lowest point since the Great Recession in the second quarter of 2022. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), just 42.8% of new and existing homes sold between the beginning of April and end… Read More ›

Buyers’ Expectations of Housing Availability Improve

For the first time since 2020, prospective buyers expect housing availability to improve.  After falling steadily for five quarters, the share expecting the home search to get easier in the months ahead grew from 17% to 22% between the first and second quarters of 2022.  Less competition from buyers priced-out of the market by recent increases in mortgage rates is… Read More ›

Some Buyers Turning to New Construction

After falling steadily for five quarters, the popularity of new homes rebounded in the second quarter of 2022, as 21% of prospective buyers reported looking for a newly-built home – up from 19% a quarter earlier.  A possible reason for this pivot is the recent growth in the inventory of new homes for-sale, while the supply of existing homes on… Read More ›

Housing Demand Flattens as 1st-Time Buyers Retreat

The share of adults planning a home purchase within a year stood at 13% in the second quarter of 2022, unchanged from the previous quarter, but lower than a year earlier (17%).  The leveled reading suggests that, after shrinking for the past three quarters, the pool of potential home buyers may have stabilized. Part of the reason housing demand has… Read More ›

Builders’ Profit Margins Fall as Balance Sheets Grow

The financial performance of any company is directly linked to the industry environment in which it operates.  Factors such as the number and size of its competitors, barriers to enter or exit, capital requirements, economies of scale, or the bargaining power of customers and suppliers all play a role in the potential profitability of a company.  Given this reality, one… Read More ›