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Vol. 11 No.11
July 29, 2019
www.csrej.com
The longest economic expansion in the nation’s history—now approaching 10 years—may be nearing an end, writes Lawrence Yun, chief economist of the National Association of REALTORS®, in his latest column at Forbes.com. But the housing market could help turn around some sluggish economic numbers, such as business and conYun sumer spending. Consumer spending is slowing, despite a record number of jobs, rising wages, and plentiful wealth accumulation by homeowners and stock market investors, Yun notes. Rising tariff fights are also causing some recent hesitancy within the economy, Yun notes. He says that slower activRising tariff fights are also causing ity on international exports and some recent imports have correlated with a hesitancy within slowing economy in the past. the economy “Real estate is the key area for future growth and a savior in the continuing economic expansion,” writes Yun. But while demand remains high, “there is a housing shortage, and hence a critical need to build more homes, especially at moderately priced points where the demand is strongest.” Economy Continues | Page 4
More homes for first-timers are on the way, builders vow Home builders say they are stretching their highest percentage in a decade. focus beyond higher-priced homes for moveBuilders are looking at adding homes that up buyers. A greater inventory of affordable are smaller with lower square footage in order homes that cater to newbie buyers is coming. to help curb costs. However, challenges remain—such as higher D.R. Horton, the largest home builder in the costs of building materials, labor and lot short- country, is offering homes in the low $200,000 ages—but builders say they know the market is range through its Express Homes brand, which eager for more new homes for first-time buyers, they launched five years ago. and they’re positioning themselves to answer Affordability, however, can vary across buildthe call. ers. Toll Brothers, a high-end builder, says it’s Few builders “can compete shifting some of its Few builders can and be profitable at that price product to cater to compete and be point, particularly with lot the older millennial and land prices at levels near segment. In markets profitable at that the bubble peak, but many are like Jacksonville, price point nonetheless reaching lower Fla.; Boise; Reno, price points than they had historically done,” Nev.; and others, they are offering homes in Forbes.com reports. the $350,000 to $450,000 range, which is less KB Home says its first-time buyer segment expensive than what they traditionally build at. of homes is growing rapidly. Jeff Mezger, CEO In Southern California, known for its pricof KB Home, told Forbes.com that 55% of KB’s ier markets compared to other areas of the new home deliveries in the second quarter of New Homes Continues | Page 4 this year were to first-time home buyers—its
Agent, Buyer Mistaken for Home Invaders
HBA: Breakfast with Jake Jabs at The Pinery
Jay Gupta's June Housing Stats
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Mobile Issue (Beta)
Housing could turn around weakening economy, says NAR
National News............ Page 2 Local News................ Page 6 On the Move.............. Page 8 Local Expert.............. Page 10 Around the Corner....... Page 11
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