Luxe Austin Homes - builders

"Builders Are Slowing Down New Construction Despite the Housing Shortage. What Gives?"

Realtor.com reports, "the nation might be in the clutches of a dire housing shortage, but builders won’t be putting up enough new homes this year to make much of a dent.

Housing starts, which is when construction has begun but not yet completed, are expected to fall to about 744,000 single-family homes in 2023 as builders continue to pull back, according to the National Association of Home Builders forecast. That’s down about 12% from last year.

However, NAHB expects new construction will rebound in the second half of the year, giving a boost to the overall economy.

“Typically, single-family construction tends to recover before the economy rebounds,” says NAHB Chief Economist Robert Dietz. “By the time we get to the second part of the year,…

445 Views, 0 Comments

"Are buyers already coming back into the housing market?"

Austin Business Journal reports, "since the start of the new year, there's indications buyers may be — albeit slowly — reentering the housing market, owing in part to mortgage rates that've stabilized since 2022's volatility.

Redfin Corp. (Nasdaq: RDFN) found while pending home sales fell 26% year over year during the four weeks ending Jan. 22, that was the smallest drop in more than three months, and that metric had began rising on a month-over-month basis since December.

Separately, home tours and requests for service for Redfin remain down 23% and 27% respectively from a year prior, but both are an improvement from a November trough of that activity being down 40%.

Pending home sales increased in December for the first time since May 2022,…

402 Views, 0 Comments

"46K new housing units possible on unlocked Austin land — but zoning change doesn't go far enough, builder says"

Austin Business Journal reports, "builders in Austin can now take advantage of a change in city code that will allow for the development of residential properties on land zoned for commercial use.

The change to the land development code, which Austin City Council approved on Dec. 2, carries major implications for real estate firms, significantly expanding the market for development. It also represents another avenue for cutting into Austin's housing shortage: city staffers previously estimated this decision could allow for the creation of 46,324 new homes.

Developers will still need to apply to build residential projects in commercial areas and will have to meet certain criteria, including around affordability. The change incentivizes the…

412 Views, 0 Comments

"Home Builders Struggle To Find Buyers as Cancellations by Developers Rise"

Realtor.com writes, "it’s a tough time to be selling a home. That’s also true for home builders, who are seeing canceled orders and dwindling interest among would-be buyers.

“Mortgage applications have been running down close to 40% year over year. People are clearly in sort of a wait-and-see or pause mode,” John Lovallo, a UBS analyst who covers home builders, told MarketWatch on an episode of Barron’s Live.

Confidence among home builders dropped for the 10th month in a row in October to a 10-year low (with the exception of the start of the pandemic), according to the National Association of Home Builders. Traffic among prospective buyers, one of the components that measures confidence, fell significantly, the association said, as buyers look…

427 Views, 0 Comments

"‘Incentives Come in Many Forms’: Here Are Ways To Lower Your Mortgage Rate, According to This Mortgage Company CEO"

Realor.com writes, "mortgage rates are double where they were a year ago, making home buying a much more costly endeavor. Home sellers are trying to help them out.

Buyers are not feeling the market, depressing mortgage demand. Rates are hovering at around 7%, which adds hundreds of dollars in additional monthly payments for prospective buyers’ budgets.

Even though the number of for-sale homes is growing, they’re still expensive, creating affordability issues for buyers.

Some builders and sellers are getting more creative, and offering ways for potential home buyers to lower their mortgage rate and monthly payments.

“There are programs out there today, like something called a 2-1 buydown or a 3-2-1 buydown,” Michael Isaacs, the CEO of GO…

419 Views, 0 Comments

"Wildhorse Ranch to expand near Manor"

Austin Business Journal writes, "another undeveloped chunk of land has taken a step toward becoming single-family homes in Northeast Austin.

During the Oct. 25 meeting of the Austin Planning Commission, the preliminary plan for Pinnacle at Wildhorse Ranch gained approval to divide 60 acres into 57 lots within the city’s Gilleland Creek watershed.

The approval represents an expansion to Wildhorse Ranch that has risen on 1,450 acres next to the newly requested expansion.

The development is a product of Austin-based Dwyer Realty Companies, led by longtime developer Pete Dwyer, and the request and the preliminary plan were presented to the commission by Kevin Burks, a civil engineer at the design consulting firm Kimley-Horn.

Dwyer Realty did…

371 Views, 0 Comments

"Mortgage Bankers Expect Rates To Drop to 5.4% in 2023. Here’s What That Means for Home Prices."

Realtor.com reports, "high mortgage rates and recession fears are hurting home prices, so expect growth to be flat this year, one expert says.

“Our forecast is for home-price growth moderation to continue,” Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said Sunday during the organization’s annual conference in Nashville, Tenn.

Home prices have already begun moderating. According to Case-Shiller, home prices fell month-over-month from June to July for the first time in 20 years. The latest numbers, which will be for August, will be reported on Tuesday morning.

With a recession likely in the cards, on top of mortgage rates near or above 7%, “we’ve already seen a pretty dramatic pullback in housing…

439 Views, 0 Comments

Grand plans, deep-pocketed backers revealed for what will be tallest building in Austin — and all of Texas

The skyscraper being constructed at 98 Red River St. in downtown Austin, which is set to be the tallest building in both the city and state when complete, finally has a name: Waterline.

In addition to its official moniker, the development team revealed Sept. 6 a slew of additional details about the project, which is set to take the skyline to new heights. That included a breakdown of space within the hotel-office-residential tower and community benefits like pedestrian access and a seven-figure donation to the nearby trail system.

"Downtown Austin offers one of the most dynamic markets and skylines in the nation, and we're excited to help drive its ongoing transformation," said Seth Johnston, senior vice president in Austin for Dallas-based…

447 Views, 0 Comments

Apartment construction on fire in Austin area

By year’s end, Austin is projected to rank No. 4 among major metros nationwide for new apartments brought online, a welcome sign of relief in a region starving for both rental and for-sale housing.

That’s according to an Aug. 23 RentCafe study which found that Austin is projected to deliver 18,288 apartments in 2022.

That would be a five-year high and continue a trend of increased apartment construction since 9,107 units were delivered in 2019.

Already this year, the Austin metro ranks No. 2 in the nation with 4,236 apartments delivered, according to RentCafe. Houston ranks No. 1 with 4,746 apartments delivered and Seattle ranks No. 3, with 3,232.

Multifamily builders are rushing to meet a huge level of demand. A July study by Hoyt…

415 Views, 0 Comments

The Housing Shortage Is About To Get Worse—Don’t Expect Builders To Save the Day

Just a few months ago, builders couldn’t put homes up fast enough to appease the hordes of eager buyers. They boasted about lengthy waitlists, even holding lotteries to choose those lucky enough to purchase their newly constructed homes.

Those days are now over as the housing market corrects after two years of runaway prices.

Buyers are now canceling orders and extracting themselves from waitlists as higher mortgage rates have pushed their dreams of owning new construction beyond their financial reach. Sales are down.

Builders are responding by throwing out incentives, like spaghetti against a wall, to see which ones attract buyers. Some have begun cutting prices, and the majority are slowing down the pace of construction—despite the nation’s…

474 Views, 0 Comments