MBA Newslinks Archive

“Millennials are already starting to set trends in the real estate industry. They are three times more likely than Baby Boomers to make an offer sight-unseen, and they’re more likely than older buyers and sellers to negotiate commission savings.”–Nela Richardson, Chief Economist with Redfin, Seattle.

“We’re seeing indications that entry level buyers continue to come into the market as jumbo borrowers looking at bigger homes step back.” –MBA Chief Economist Mike Fratantoni.

“Inventory has been falling for years with supply no longer meeting demand, and there are multiple reasons for the worsening situation. On the demand side, simple demographic change is contributing to incredibly high demand as millennials reach their prime home-buying years and begin to enter the market in droves. This is coupled with relatively low levels of new home construction on the supply side insufficient to keep pace with demand, and what is built is largely priced beyond the reach of many of the first-time and entry-level home buyers in the market.” –Zillow Chief Economist Svenja Gudell.

“The slow motion recovery in new home sales has made the sector more susceptible to quirks in the seasonal adjustment process, which has been particularly apparent in recent months. New home sales have been knocked around quite a bit this year by unseasonably mild winter weather, which boosted sales earlier this year. In addition, this year’s late Easter pulled sales forward into March and then weakened them in April.”–Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C.

“There are a lot of good Republicans and good Democrats out there who are working together to find the right solutions on issues. We’re moving forward on a lot of little things that matter to people.” –Rep. Steve Stivers, R-Ohio, chairman of the National Republican Congressional Committee.

“Commercial and multifamily market activity has downshifted at the start of 2017. Markets continue to move forward, but the rapid increases in property values, transaction volumes and other fundamentals that characterized the post-recession period have given way to more regular changes tied to the economy as well as changes in supply and demand. For many parts of the market, the downshift is a positive development.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“Make sure all employees are getting great work that allows them to show their abilities. Make sure that a talent management program is in place that ensures that employees are being evaluated for leadership and promotion opportunities based on both their accomplishments and potential. Studies have shown that men are often promoted on potential and women are not. That gives men an unfair advantage. Also make sure that development plans are in place and that all employees are receiving constructive feedback to fuel their development.”–Teresa Bryce Bazemore, former President of Radian Guaranty Inc., Philadelphia, discussing how companies can promote diversity and inclusion.

“Housing is not a partisan issue. Regardless of who I talk to on Capitol Hill or within the Administration, there is a belief that housing reforms can be passed this year.”–MBA President and CEO David Stevens, CMB.

“The West is the most supply constrained region, and this shortage of lots and workers is likely the driver behind the monthly drop, as opposed to a weakening in demand.”–Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C.

“The market for existing homes continues to tighten as Millennial household formation grows. Yet, existing homeowners are prisoners in their own homes as rates rise and make moving more costly and the fear of not being able to find something hinders the decision to sell. More new, and affordable, homes are needed, otherwise expect continued low inventories of homes for sale and fast rising prices.”–Mark Fleming, chief economist with First American Financial Corp., Santa Ana, Calif.