Builders call new-home market ‘unhealthy and unsustainable’

Forced to slow down construction as buyer demand plummets, builders predict lower home starts through 2023.

Single-family home starts dropped in September and were down 5.6% since the beginning of the year, the Commerce Department reported this week. Multifamily construction has dropped 13.2%.

Builders are blaming rapidly rising mortgage rates, ongoing supply chain disruptions, and affordability challenges for the rapid pullback in the new-home market. “High mortgage rates approaching 7% have significantly weakened demand, particularly for first-time and first-generation prospective home buyers,” says National Association of Home Builders chairman Jerry Konter. “This situation is unhealthy and unsustainable".

Can you believe this was the most expensive townhome sold this week in Porter Ranch?!

Here is the most expensive townhome sold this week in Porter Ranch.

Asking price: $699,998

Selling price: $699,000

This home has 3 bed/3 bath, 1,603 sq. ft. of living space, and is on a 3,045 sq. ft. lot.

The townhome is in the guard-gated community of Northridge Estates. They have a community pool, spa, tennis courts, and playground for the residences.

See why this Glendale home is the most unique property for sale this week!

This is the most unique home for sale in Glendale.

Asking price: $5,638,000

This tri-level home has 5 bed/4 bath, 6,056 sq. ft. of living space, and is on an 8,348 sq. ft. lot.

The home features an indoor pool, spa, sauna, BBQ area, and theater with a kitchen.

There is an expansive open deck with unobstructed views of DTLA.

Text me for more info at 818-445-7953.

5 offers per home sold

On average, there were nearly five offers for every home sold in February, higher than in recent months, according to the February 2022 REALTORS® Confidence Index Survey. Real estate professionals who were surveyed reported more than five offers, on average, in Massachusetts, Georgia, Texas, Colorado, Utah, Washington, and California.

Nationwide, 48% of buyers’ offers were above the list price, according to NAR’s data. On average, those offers were about 2.9% above the list price; on the median-priced home, that would be about $10,000 over the asking price. However, 13% of the offers were 10% above the list price.

Real estate pros report that in general their buyers typically lose two homes before succeeding on the third try, according to the study.

Homes are selling quickly under the intense competition. Eighty-four percent of listings were on the market for less than a month.

“Competition could intensify in 2022 before waning in 2023 as home buyers compete to lock in at the current rates,” Gay Cororaton, a research economist for NAR, writes on the association’s blog. “Mortgage rates may rise more steeply in 2023.”

Source: “February 2022 REALTORS® Confidence Index Survey: Buyer Competition Intensifies to 5 Offers Per Home Sold,” National Association of REALTORS® Economists’ Outlook blog (March 18, 2022)

Hey! We just sold this Valley Village condo - check it out!

JUST SOLD💥

5604 Rhodes Ave #103, Valley Village, CA 91607
2 beds | 2 baths | 1,260 Sq. Ft.

Located in Valley Village on the same street with million-dollar homes, you will find this corner unit 2 bedroom, 2 full bathroom condo!
This newly painted unit features a large kitchen with breakfast bar, fireplace in the living room, a remodeled guest bathroom, and a large en-suite bathroom in the master bedroom.
There is an in-unit laundry area, central AC/Heat, a private patio, 2 parking spaces in the gated garage, and the complex is pet-friendly.
If you are looking for a 2 bed, 2 full bath corner unit condo, at a great value, this just might be the home for you.

More couples buying homes before marriage

31% of all Americans and 41% of 18-to-34-year-olds say they’ve purchased a primary residence with someone they aren’t married to, according to a survey by realtor.com®. Further, 55% of Americans and 68% of 18-to-34-year-olds say they would consider it.

“With home prices skyrocketing in recent years, it’s become even more challenging to break into the housing market for first-time buyers,” says Clare Trepasso, deputy news editor at realtor.com®. “Many buyers have needed more than one income to afford a home, especially as rising rents may be eating into their down payment savings. However, the pandemic delayed many weddings. And rising prices forced some couples to choose between saving to become homeowners versus having the big day. This has resulted in many unmarried couples, as well as extended families and friends, pooling their resources so they can afford to become homeowners.”

The most common co-buyers are romantic partners who are not engaged or married (15%). But Americans are also open to buying with extended family members or roommates.

Here’s the breakdown:

Romantic partner, not engaged or married (15%)

Parent, grandparent, or older relative (6%)

Child, niece or nephew, or other younger relative (5%)

Sibling, cousin, or relative of a similar age (4%)

Roommate (4%)

Friend (4%)

Valley Village Condo Listing

Located in Valley Village on the same street with million-dollar homes, you will find this corner unit 2 bedroom, 2 full bathroom condo!

This newly painted unit features a large kitchen with breakfast bar, fireplace in the living room, a remodeled guest bathroom, and a large en-suite bathroom in the master bedroom.

There is an in-unit laundry area, central AC/Heat, a private patio, 2 parking spaces in the gated garage, and the complex is pet-friendly.

If you are looking for a 2 bed, 2 full bath corner unit condo, at a great value, this just might be the home for you.

For more info visit www.RhodesCondo.com.

Here's the 10 Priciest Housing Markets...

The most expensive markets in the fourth quarter continued to see even higher prices in the fourth quarter; nine of the top 10 saw double-digit percentage increases. California led the way with five metros in the top 10.

The 10 priciest markets in the fourth quarter are:

1. San Jose-Sunnyvale-Sta. Clara, Calif.: $1.675 million; up 19.6%

2. San Francisco-Oakland-Hayward, Calif.: $1.31 million; up 14.9%

3. Anaheim-Santa Ana-Irvine, Calif.: $1.15 million; up 23%

4. Urban Honolulu: $1.055 million; up 16.8%

5. San Diego-Carlsbad, Calif.: $845,000; up 14.2%

6. Los Angeles-Long Beach-Glendale, Calif.: $797,900; up 15.9%

7. Boulder, Colo.: $775,100; up 17.2%

8. Seattle-Tacoma-Bellevue, Wash.: $700,000; up 13.9%

9. Naples-Immokalee-Marco Island, Fla.: $685,000; up 21.2%

10. Nassau County-Suffolk County, N.Y.: 644,600; up 9%

Source: National Association of REALTORS®

STOP RENTING! Come tour my new condo listing in Valley Village & become a homeowner!

Located in Valley Village on the same street with million-dollar homes, you will find this corner unit 2 bedroom, 2 full bathroom condo!

This newly painted unit features a large kitchen with breakfast bar, fireplace in the living room, a remodeled guest bathroom, and a large en-suite bathroom in the master bedroom.

There is an in-unit laundry area, central AC/Heat, a private patio, 2 parking spaces in the gated garage, and the complex is pet-friendly.

If you are looking for a 2 bed, 2 full bath corner unit condo, at a great value, this just might be the home for you.

For more info visit RhodesCondo.com.