Real Estate Industry News – April 2022 Edition

How the US’s supply chain will hinder the housing market:

  • For nearly 3 years, builders have struggled to keep up with demand as availability and surging costs for building materials have ultimately produced higher prices for newly-built homes.
  • And experts say conditions are not getting any better, in fact, they are worse than last year.
  • Let’s talk about some of these increases:
    • Building materials increased 20.3% year over year and have risen 28.7% since January 2020.
    • Structural lumber has increased more than 40% over the past 13 months and according to NAHB this increase in lumber, resulted increase of about $20K per home, $40k in some markets; for an average size home.
    • And let’s not talk appliances.
  • Here is what Lawrence Yun, NAR’s Chief Economist states,
    • “The costs and delays are rising because of the broader inflation and supply chain disruptions,”
    • And yet…..“Still, there are profits to be made. Even adding on extra costs to the final price, there are consumers willing to buy.”

Let’s talk about RISING Rents!

  • Rent prices break record high gains in January!! 12.6%
  • Single family renters are feeling the brunt of inflation and rising home prices.
  • Due to shortage rental and purchase inventory, rents continue to rise.
  • Year over year the rental cost increase 12.6%
  • Now, lets consider the raising interest rates.
  • Take increased rates; increased prices and increased rents…..
  • The increased prices alone, priced out by 19%  of “potential buyers.”

Interest Rates have hit the 4% benchmark:

  • It’s official, as of yesterday; rates topped 4% .
  • Kicking an additional million buyers out of the buying arena.
  • EVERY time rates go up per .25%, more buyers will drop out.
  • Possibly giving more strong buyers the chance to grab up a home….maybe.

Piatt’s two cents:

  • If you are renting, you need to create a STABLE monthly debt to income ratio for yourself. You can create that stability through home ownership.
  • Landlords in Oregon, will be increasing your rent 3-7% each and every year.
  • Talk to a professional about the cost of waiting vs. the cost of renting.
  • And don’t forget to mention your favorite Title Company when you do write your offer; Ticor Title!

Now for some cool news………..Single women home buyers are out-pacing men!! Say it LOUDER for the folks in the back!

  • In honor of Women’s month, how could I NOT MENTION  how fierce women are!
  • Did you know that Single Women have been second only to married couples in the home-buying market since the National Association of REALTORS® (NAR) started data collection on the topic in 1981? Neither did I!
  • What is STRIKING about this statistic is that is wasn’t until 1974 that women had federal protections, enabling them to obtain a mortgage without a co-signer. Ya, you heard me, a MALE co-signer?!
  • Prior to the passage of the Fair Housing Act’s  and the Equal Credit Opportunity Act, it was commonplace for a woman to need a male relative as a co-signer. Women had no legal recourse under federal law for this or any other kind of lending discrimination. Now we do!
  • And people wonder why the divorce rate spiked in the 70’s….. I don’t wonder, even a little.
  • In 1981:
    • 73% of homebuyers were married couples
    • 11% were single women
    • 10% were single men
  • Single women reaching our peak of the share at 22% in 2006.
  • Today:
    • 60% of homebuyers were married couples
    • 19% were single women
    • 9% were single men
  • And when you consider single women, on average make $13,000 less per year, than a single man, I become even MORE proud of our lady progress AND more aware that WE still have more to do in closing the income gap.

In closing,

  • Ladies, we are not done yet, we still have MORE to accomplish.
  • So start by never forgetting the women that paved the way for you, for us.
  • Thank your mentor
  • Then, turn around and support and empower the ladies behind you
  • AND lastly, teach those ladies, do the same.
  • For the true measure of progress, will be driven by the continuous investment in each other. ~ Piatt

Wishing you well,

Laura Piatt

For more on these trends and others, check out the full Profile of Home Buyers and Sellers report at www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers.


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