NATIONAL NEWS
Builders Concerns of Lot Availability Unchanged from 2016 By Ashok Chaluvadi
The monthly NAHB/Wells Fargo Housing Market Index (HMI) survey includes a set of “special” questions on a topic of current interest to the housing industry. In June 2017, the special questions asked builders about the supply and price of developed lots.
locations translates into higher prices, as 73% of home builders in June 2017 said the price of developed lots was somewhat to substantially higher than it was a year ago. BMHBA to Put Lots Online
To expose available lots for builders the BMHBA is adding a section to its website that will include links and listings. A submission form is will be made available to lot owners and developers who are encouraged to submit land and lot information.
Sixty-four percent of builders reported that the overall supply of developed lots in their areas was low to very low, the same share in May 2016, but up from 43 percent in September 2012. This is the largest share of builders reporting low to very low lot supply since NAHB began periodically asking the question in 1997 on its monthly HMI survey.
Members will be able to access the listings at bmhba.com under the resources link.
NATIONAL NEWS
A shortage of buildable lots, especially in the most desirable
NAHB TO WEIGH IN ON DOL’S INFORMATION REQUEST ON OVERTIME
HOME SALES WEAKEN IN JULY
The Department of Labor has issued a request for information on the Obama administration’s overtime rule, and NAHB will submit comments independently and as part of the Partnership to Protect Workplace Opportunity coalition.
The pace of new and existing home sales fell in July, as inventory remains a key challenge for the market. Though new single-family home sales dropped 9.4% for the month, the current pace of sales is 9% higher than it was at this point last year. NAHB analysis indicates new home sales retreated in markets that experienced the greatest gains during the start of 2017, suggesting only a temporary pause.
The rule was never implemented because a judge issued a preliminary injunction against it. Secretary of Labor Alexander Acosta testified at his Senate confirmation hearing that he would prefer a more modest salary threshold than previously proposed, one that is potentially tied to the rate of inflation.
Creating additional inventory depends on industry access to labor, lots and financing. The stock of residential construction loans continues to expand, though the rate of that growth has slowed. Recent NAHB analysis indicates builder lending has increased 9% on a year-over-year basis, which is consistent with the current forecast of single-family construction gains.
NATIONAL NEWS
To recap, the Obama administration last year issued a proposed rule that was set to take effect Dec. 1, 2016 that would double the salary threshold to receive overtime pay from $23,660 to $47,476.
By NAHB Chief Economist Robert Dietz
Existing home sales were down 1% in July, with 51% of sales occurring within one month of the home going on the market. Current inventory of existing homes is 9% lower than a year ago and has fallen for 26 straight months. The lean inventory is the primary reason home prices continue to rise, increasing 4.4% on an annual basis in June.
The Department of Labor is providing the public with the opportunity to offer input as the agency mulls its next steps.
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Building Buzz | September 2017