Though construction workers’ wages have not changed in the past four years (stuck at $38 per hour on average), the costs of construction materials have been rising. Palm Coast, FL – September 13, 2011 – The price of newly constructed homes refuses to budge downwards. After hitting the cyclical low of $204,000 in October of […]
The current home sales activity is matching levels seen 12 years ago, yet the total population has increased by more than 30 million since then. Palm Coast, FL – September 10, 2011 – The current home sales activity is matching levels seen 12 years ago, yet the total population has increased by more than 30 […]
The second half GDP growth rate is expected to be less than 2 percent. Palm Coast, FL – August 25, 2011 – The economy is barely crawling along. A recent sizable downward revision to GDP figures showed that the current economic activity – adding up all income generation from producing autos to providing hair cuts […]
Does homeownership reduce strife and civil disobedience? Palm Coast, FL – August 19, 2011 – REALTORS® build communities and hence are naturally one of the strongest protectors of communities and property rights. With this in mind, it was very disconcerting to see—even for a few days—hooligans smashing properties and controlling the streets of London and […]
Housing affordability will be at its highest in a generation this year. Palm Coast, FL – August 17, 2011 – The affordability index is comprised of median home prices, median family income, and the prevailing mortgage rate. An index of 100 implies that a median income family has just enough income to buy a median […]
In the long run, prices will be mostly determined by supply, particularly from the cost of construction and land prices. Palm Coast, FL – July 26, 2011 – In the short run, home prices will be strictly determined by demand. Supply cannot be brought in line in a short time-frame. It takes time to get […]
The worst in housing looks to be over. The question now is about the degree of strength in such a housing recovery. Palm Coast, FL – July 18, 2011 – We had better than decent news on housing in June. Pending contracts on existing homes bounced back solidly – implying much improved activity in the […]
One area where messages get mixed relates to the media coverage of new home sales versus existing home sales. Palm Coast, FL – June 23, 2011 – The housing market has been providing mixed messages lately. Relatively good news is spouted by the media one day, followed by bad news the next. From home prices […]
Jobs were being created, but perhaps not in the industries that generate the big bucks. Palm Coast, FL – June 16, 2011 – It’s not yet summer, but almost. This time of year – the “transitional” one between late spring and real summer (when all the kids are home from school) – has seen some […]
The affordability index has been bouncing around in the 180 to 200 range since the beginning of this year – the highest reading since the index was first used in 1971. Palm Coast, FL – June 9, 2011 – The cliché says that there has never been a better time to buy. The hard data […]