The pandemic party dreams are over. During the pandemic, many sought more space and different lifestyles during lockdowns, not all transitions met expectations, prompting a return to familiar settings. In addition, many tried to "time the market," learning a key lesson - life events often dictate housing decisions more than market conditions. Click here to get insight into our thoughts about this here in the Foxhole.
HUD and Dept. of Interior have announced a plan to identify federal lands suitable for affordable housing development. Why does it matter? This initiative aims to increase housing supply, reduce costs, and streamline land transfer processes to meet the growing demand for affordable housing.
A new Joint Task Force will inventory underutilized federal properties, aiding states and localities in developing these lands while ensuring affordability remains central. Look out for the following states: Arizona (38.6 federally owned), Colorado (36.2 federally owned) and Utah (63.1 federally owned). While federal efforts could provide a boost to the housing market, from a practical perspective, road access, dry utilities, and water (rights) will be a challenge in getting units to market. Get our thoughts here.
Hack real estate analyst warns housing market is showing signs of the ‘08 crisis. In Florida, inventory has increased by nearly 34% year-over-year, with declining demand due to high insurance fees and natural disaster risks. In fact, home prices in some Florida areas are dropping, and Gerli predicts a 5% decrease statewide in 2025. While builders in the South and West face a challenging market, the Northeast and Midwest continue to experience tight supply and rising prices.
What do we think? You can read more here but while there are plenty of clickbait artists who want to stoke fear, the market is rebalancing supply, creditworthy borrowers are making purchase decisions at rates above 6.0% even today, and builders are making tactical decisions to provide incentives, while keeping margins above pre pandemic levels.
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