Latest news with #AliWolf
Yahoo
08-05-2025
- Business
- Yahoo
SINGLE-FAMILY LOT SUPPLY LOOSENING IN MORE MARKETS
Up for the Third Consecutive Quarter; Highest Level in Five Years NEWPORT BEACH, Calif., May 8, 2025 /PRNewswire/ -- Zonda's New Home Lot Supply Index (LSI) for 1Q25 showed lot supply loosened, both year-over-year and quarter-over-quarter across the United States, notching the third consecutive increase from previous quarters. The index is a residential real estate indicator based on the number of single-family vacant developed lots and the rate at which those lots are absorbed via housing starts. The New Home LSI came in at 64.3 for 1Q25, representing a 12.1% increase from 1Q24. The 1Q25 data shows a "significantly undersupplied" market nationally. The market has been "significantly undersupplied" since 2017. On a quarter-over-quarter basis, supply increased by 5.7% from 4Q24. The LSI counts the total vacant developed lot supply and adjusts for overall starts activity. "Today's housing market is shaped by the intersection of politics, economics, affordability, and consumer sentiment," said Ali Wolf, chief economist for Zonda and NewHomeSource. "The resulting impact is a choppy market, and mixed messages on the lot supply front. Zonda's LSI in the first quarter came in at the highest level in five years thanks to slower housing starts and more cautious consumers but remained significantly undersupplied." Total upcoming lots (delivery over the next 12-18 months) for 1Q25 increased 4.7% year-over-year, and were up 6.5% from last quarter. Additionally, they were up 26.3% compared to the same quarter in 2019. "There has been a lot of money invested in land and lot development in recent years, and we are seeing the fruit of that labor show up in total upcoming lots," said Wolf. "The big question now is how aggressive builders will be in the shifting market with housing starts, new community openings, and their land acquisition plans." See the full insights and analysis on Zonda's us at upcoming Zonda events including Future Place, Oct. 27-29 and Multifamily Executive Conference, Nov. 4-6. About ZondaZonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing. About NewHomeSource (NHS) is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence. For media inquiries or to schedule an interview with Chief Economist Ali Wolf:Contact: Diane BeginEmail: pr@ 224-836-5615 View original content to download multimedia: SOURCE NewHomeSource powered by Zonda
Yahoo
08-05-2025
- Business
- Yahoo
HOMEBUYERS: New Construction Increasingly a More Cost-Effective Choice
As New Home Market Conditions Stay Near Average, Consumers Stand to Benefit DANA POINT, Calif., May 8, 2025 /PRNewswire/ -- The Builder 100 – Zonda's 37th annual gathering of top U.S. builders wrapped up yesterday. As a unique national provider tracking the entire building cycle, the event covers critical industry topics such as the state of the current housing market. Zonda chief economist Ali Wolf — whose role has recently expanded to chief economist for — offered some 'back to the basics' advice on what we'll see from consumers in the coming year in a presentation this week titled 'Economic Outlook for Housing.' "While consumers remain very concerned about the economy and whether we'll enter a recession, for those who have the means to make a move, they stand to see an increased benefit in the type of home they can secure for themselves," says Ali Wolf chief economist for Zonda and NewHomeSource. "Because of market uncertainty, new home prices were down from peak in every one of the 50 markets we track, and 35% of builders reported lowering prices in April," Wolf adds. "If a consumer is looking to buy this year, the case for a new home is growing." The price spread between buying a new construction home versus buying an existing home has narrowed (partly because of changing product). Because of an aged housing stock, new construction allows consumers to minimize unforeseen renovation problems. Builders are also increasingly offering more incentives, making it even more attractive to buy new. Through new construction, consumers can also customize and design their homes to fit their lives. Finally, new home buyers benefit from reduced insurance costs. The nation's largest builders were recently unveiled as part of the Builder 100 and Next 100 lists, including focuses on specific consumer segments: Entry Level, Move Up, Affordable⁄Subsized; and, Active Adult (55+) construction. Visit NewHomeSource for more on: How to Choose Between New Construction and Resale Homes A Step-by-Step Guide to the Home Building Process TrustBuilder Reviews: Home Builder Reviews from Real Homebuyers Also see from Builder 100: TARIFF TALK: Homebuyer and Remodeling Price Sensitivity in 2025 RENTERS: The Growing Influencers in the Building Community Dream Finders Homes Wins the 2025 Builder of the Year Award Lennar Foundation Honored with 26th Annual Hearthstone Builder Humanitarian Award Introducing the 2025 Virtual Concept Home Designed by Ashton Woods Homes About NewHomeSource (NHS) is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence. About ZondaZonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing. About BUILDERBUILDER is the No. 1 resource—via its award-winning journalism and industry events—for anyone involved in new-home construction. Primarily focused on the single-family sector, BUILDER strives to help home builders manage their operations, large and small, more efficiently and profitably. Residential construction pros turn to BUILDER for housing-related news, market analysis, design trends, M&A deals, building product coverage, and more. For media inquiries or to schedule an interview with Chief Economist Ali Wolf:Contact: Diane BeginEmail: pr@ 224-836-5615 View original content to download multimedia: SOURCE NewHomeSource powered by Zonda Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
14-02-2025
- Business
- The Hill
Looking for a new home? Builders offering valuable incentives to entice homebuyers
LOS ANGELES (AP) — Americans looking to buy a newly built home this spring are likely to get a helping hand with their mortgage rate and other costs. Many homebuilders are offering buyers valuable incentives like paying down their mortgage rate, covering closing costs or even throwing in 'flex dollars' that home shoppers can put toward upgrades or other costs. While the sales strategy isn't new, builders are under pressure this year to ramp up such incentives because they're facing a tough spring homebuying season. Stubbornly high mortgage rates, more competition from existing homes on the market and the realization that years of rising home prices have pushed affordability to the limit for many prospective buyers gives builders little opportunity to ease off the costly incentives. 'They're running into more competition, fewer buyers and increased costs to sell a home,' said Ali Wolf, chief economist at Zonda. And dialing back incentives may not be easy, as home shoppers have now come to expect them. 'We should anticipate that builder incentives are here to stay,' Wolf said. 'I don't see a world where they don't need them, unless interest rates came down, and most signs point to higher-for-longer with interest rates.' Elevated mortgage rates and rising prices have kept many prospective home shoppers on the sidelines, especially first-time buyers who don't have equity from an existing home to put toward a purchase. While mortgage rates have eased in recent weeks, the average rate on a 30-year mortgage has been hovering around 7% since November after climbing from a 2-year low of just over 6% in September, according to Freddie Mac. Builders have increasingly relied on buyer incentives to mitigate the impact of higher borrowing costs on home shoppers as the average rate on a 30-year mortgage more than doubled in recent years from its pandemic-era historic low of 2.65%. Many builders have also lowered prices. The share of homebuilders that offer sales incentives has ranged between 60% and 64% since June, while between 30% and 33% have lowered prices, according to surveys by the National Association of Home Builders. The use of buyer incentives helped drive sales of new homes higher last year, while the resale home market remained in a deep slump. Sales of newly built single-family homes rose 2.6% last year to around 1.02 million units, the highest level since 2021, according to data from the U.S. Census Bureau. Sales of previously occupied U.S. homes fell in 2024 to their lowest level in nearly 30 years. While mortgage buydowns and other incentives can help builders entice buyers, their cost eats into their profit margins. The average operating margin for 12 of the largest homebuilders, including D.R. Horton, PulteGroup and Lennar, was 15.08% in the fourth-quarter, according to data compiled by FactSet. That's down from an average of 16.3% in the same period a year earlier. The concern now is that builders will have to maintain, if not boost, buyer incentives to continue mitigating the impact of high mortgage rates at a time when home shoppers have a wider selection to choose from. Last month, active listings — a tally that encompasses all homes on the market except those pending a finalized sale — were up 25% from a year earlier, according to Rising construction costs and uncertainty over the impact that the Trump administration's trade and immigration policies may have on building materials and labor costs, respectively, are also fueling worries on Wall Street about how well builder profit margins will hold up this year. 'We expect order growth to come at the expense of margins for homebuilders,' analysts at BofA Securities wrote in a recent research note. They also said they expect a 'challenging environment for homebuilders to persist' through the first half of this year. Concern over builders' profit margins has weighed on the stocks, with many homebuilders off to a downbeat start this year after lagging the overall stock market in 2024. D.R. Horton, the nation's largest builder by closings, is down around 7.5% this year. Lennar is down 5.6% and NVR is off 10.2%.
