March 11, 2024 Housing Market News

Welcome to today’s real estate news roundup! In the ever-changing landscape of the housing market, we have some exciting updates to share. First, we have a fascinating report from The Washington Post, highlighting a shift towards smaller and more affordable homes to cater to first-time homebuyers. This trend is driven by the need to address the critical shortage of starter homes and make housing more accessible. Additionally, the Home Building Geography Index (HBGI) by the National Association of Home Builders provides valuable insights into building conditions and growth in various submarkets. The latest findings reveal ongoing challenges such as labor and supply shortages, as well as higher mortgage rates affecting both single-family and multifamily markets. If you’re interested in diving deeper into the data, you can download the full HBGI findings. To stay informed about the latest real estate news, don’t forget to check out our other featured articles on housing market predictions, local market updates, and industry transactions. Happy reading!

New homes are getting smaller and cheaper to win first-time homebuyers – The Washington Post

The new American home is shrinking. After years of prioritizing large homes, the nation’s biggest and most powerful home builders are finally building more smaller ones, driving a shift toward more affordable housing. The boom in smaller construction has cut median new-home sizes by 4 percent in the past year, to 2,179 square feet, census data shows, the lowest reading since 2010. That’s helped bring down overall costs and contributed to a 6 percent dip in new-home prices in the same period.

Townhouses, in particular, are increasingly popular, accounting for 1 in 5 new homes under construction at the end of 2023, a record high, according to an analysis of census data by the National Association of Home Builders. To cut costs, companies are building smaller and taller, with fewer windows, cabinets, and doors.

Altogether, this wave of new construction promises a crucial first step toward addressing a critical shortage of starter homes that has sidelined first-time home buyers and contributed to inflation. “Even a slightly smaller home can be thousands of dollars cheaper — for both builders and buyers,” said Andy Winkler, director of housing and infrastructure at the Bipartisan Policy Center, a Washington think tank. “This is a trend driven by just how unaffordable housing has become, with sky-high prices, rising interest rates, and so few homes for sale.”

Home Building Geography Index (HBGI) | 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 fourth quarter of 2023 rollout of the HBGI focuses on the population density-based delineation of home building that has been the mainstay of the HBGI while also including building analysis based on coastal vs. non-coastal counties.

The latest findings illustrate that labor shortages, supply shortages, and higher mortgage rates continue to be issues for the single-family and multifamily markets. Other key findings for the fourth quarter of 2023 include:

Labor shortages and supply shortages impacting the housing market
Higher mortgage rates affecting the single-family and multifamily markets
Download the data file of the full HBGI findings here
NAHB classified all counties in the U.S. into seven regional categories based on population density and regional location. For each area, NAHB tracked single-family and multifamily growth rates (not seasonally adjusted) and market shares.

Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor

As the spring home-buying season approaches, there are signs that buying and selling activity in the market may not fully bloom. A combination of still-high mortgage rates and home prices amid historically low housing stock continues to put homeownership out of reach for many—most notably first-time buyers. Many may have to surrender to the reality of elevated home prices and mortgage rates if they want to buy a home in the foreseeable future. Essentially, all of the 2023 headwinds remain. Elevated mortgage rates, out-of-reach home prices, and record-low housing stock continue to make for a perfect unaffordability recipe.

Las Vegas builders start year off strong | New Homes | Homes

What a difference a year makes for the new-home market in Las Vegas as 2024 has gotten off to a strong start for builders as lower mortgage rates brought more buyers off the sidelines. Las Vegas-based Home Builders Research President Andrew Smith reported there were 1,063 net sales (sales minus cancellations) in January as “local builders opened the year on a strong note.” The new-home market is on par with how 2022 started with 1,090 net sales before rising mortgage rates in the second quarter of 2022 dramatically slowed sales, Smith said.

New home construction falls to nine-month low

New U.S. home construction slipped in June to the lowest level since September 2021, underscoring a housing market slowdown. Housing starts fell 2 percent last month to a seasonally adjusted annual rate of 1.56 million units, according to Commerce Department data. The decrease was driven by an 8.1 percent decline in single-family housing construction. Higher mortgage rates and a shortage of affordable homes are contributing to weaker demand and soaring prices. Home builders are urging policymakers to address supply-side issues to help produce more affordable housing.

Zonda and Builders Digital Experience Transaction | William Blair

William Blair acted as the exclusive financial advisor to Zonda in its acquisition of Builders Digital Experience (BDX). Zonda is a leading provider of data-driven housing market solutions for the homebuilding industry. The company aims to reshape how new homes are bought and sold by expanding its offerings and complementing its data-driven approach with end-to-end solutions. BDX, on the other hand, is a provider of digital marketing and sales solutions for home builders, offering a platform for new construction home listings and digital sales tools.

Colorado Springs home sales back on the rise, along with new listings and prices | Colorado Public Radio

Home sales in and around Colorado Springs picked up in February, signaling a positive trend for the region’s real estate market. Realtors sold 792 single-family homes, marking the first year-over-year monthly increase in two years. New listings also saw a significant increase compared to the previous year, and the median price rose by over $15,000. While this is good news for sellers, buyers still face challenges as homes remain on the market for an average of over 50 days. Atypical financing options, such as interest rate buy-down plans, have gained favor among lenders.