Last quote by Nela Richardson
Nela Richardson quotes
A blah September jobs report gives no impetus for anything on the economy's to do list: There's no sign of an overheating economy that would justify a rate hike; no groundswell of construction hiring that would finally hint at a return to a normal pace of housing starts; no big wage gains that would give hope for renewed productivity gains. Just a stubbornly average report at a time when the economy is looking for a jolt of the spectacular.
The 2016 home-buying season has been less ferocious than it was the past three years. Bidding wars are a tad less frequent, price growth is moderating and even in hot markets, homes are sitting on the market a bit longer. All told, this is not a market in decline, it's a market finally finding its normal.
Buyers continue to be persistent when it comes to giving homes a shot, checking out what's coming on the market despite new inventory being few and far between. But strong tour growth isn't translating into offer growth, so we'll likely see a second lackluster month for sales in August.
New construction is short of historical norms. We need more inventory, not less.
For the most part, the housing market can stomach large swings in the stock market. But there are markets, like Silicon Valley, that become queasy when the equity market is this volatile. In these areas, homebuyers' wealth and down payments are more closely tied to stocks. In addition, foreign buyers who normally flock to these cities are also highly sensitive to global volatility.
After almost a decade of under-supplied housing stock, competition is fierce. What's new in 2016 is that we're seeing the intensity of fast sales and bidding wars even in affordable markets like Grand Rapids and Omaha, where the typical home sold within two weeks last month.
Trade-up buyers seem to be losing their mojo heading into the heart of the spring selling season. Repeat buyers tend to list early because they are most often also looking for another home to buy in the near future. A slowdown in new listings reflects a lack of confidence on the part of the homeowner that they can find a desirable home to purchase.
Even though it's a sellers' market nationally, homeowners often have to make a leap of faith to list their properties because there may not be a more desirable home to move to. We are now starting to see sellers' anxiety play out in the data. After steady growth in new listings over the last three months, early readings suggest that fewer homes are being listed in May than we saw listed in May last year in many markets.
Chronically low inventory, surging rental rates and high home prices have shifted the demographic makeup of the urban core in many American cities. Cities used to be enclaves of cultural and economic diversity, but suburbs are increasingly filling this role.
Cities have not kept up with consumer tastes.
These balanced neighborhoods are an endangered species right now.