Two cards that show where the housing market is struggling
In the Mid -year Housing Market report, John Burns Research & Consulting (JBREC) provided updated figures on market conditions for both resale and new home markets. In general, sentiment is soured among agents and housing builders.
In the New-Home market, JBREC is cities on a scale from very slow to very strong and a large part of the country goes in the wrong direction.
“We go through this process every month and we have reduced a number of markets this spring,” said Chris Porter, senior vice president of JBREC research, during a webinar on Tuesday. “That includes downgrading from very strong to strong or strong to normal.
“But more markets are normal to slowly degraded. That is quite unusual for this time of the year. This is the spring sales season. We are usually a number of markets in the field of upgrading.”
Builders in Texas and Florida have become used to good conditions, but that has changed dramatically in the past year. All cities in these two states for which JBREC has announced a figure are now referred to as ‘slow’.
A study by the company reveals one of the perpetrators. Among homeowners who want to sell, 30% said in Texas that it was because of the rising real estate tax and insurance costs for homeowners, while 26% said the same in Noord -Florida. The national average was 23%.
Colorado, North Carolina and Nashville – other areas that have been good for builders in recent years – are also assessed as ‘slow’.
Clear places for builders are Chicago and Indianapolis, which are assessed as ‘strong’. Apart from Oakland, the whole of California is ‘strong’ or ‘normal’, where San Diego and Orange County fall into the first category.
JBREC, who usually serves housing builders and investors, also assessed the resale market by carrying out a poll by brokers for how they view market conditions. The results do not look better.
While the northeastern and midwest markets are assessed as ‘normal’, four markets in Florida and Texas are assessed as ‘very slow’ – Fort Lauderdale, Sarasota, Tampa and Austin. The rest is assessed as ‘slow’.
California and the southwest also have a hard time. In California, Nevada and Arizona, only San Jose, Sacramento and Las Vegas received a “normal” designation. The rest is “slow”.
