Well, Punxsatawny Phil saw his shadow, so we’ve another 6 weeks of winter upon us. Womp Womp. Such is life in Covid winter. So in order to press forward, I need to make bright spots and find my own happiness each day. Today that happiness comes in the form of traveling to our offices to film today’s Homefiniti and Beyond with Dennis IN PERSON! I’m wearing my charcuterie earrings and everything. It also comes in the form of devoting today’s edit entirely to housing news. Because (I sound like a broken record) it’s sunshine and roses in the world of housing news.
The news here is that confidence in this market remains high for the fourth quarter of 2020. It is especially high in the single family 55+ market. Just as the overall housing market is performing well, so too is this relatively new sector. I must admit, as the wife of a man who turns 56 next week, I have asked many times if we could move into one of these communities. I mean, have you seen the amenities they offer? But seriously, this is a huge market and it shows no signs of dwindling anytime soon.
BIDEN AND THE STIMULUS PACKAGE
With the news this morning that the preemptor to the actual package passed the senate, the stimulus package is looking more realistic by the day and could come as soon as the end of February beginning of March. NAHB likes the plan and feels that the help provided in it will positively affect the home building market. They are also continuing to discuss rising lumber prices with the Biden administration.
This topic came up in two different articles in my inbox this week. One more expansive than the other, but both indicating that they do not believe this is a bubble. The shorter article explains that the increase in the market isn’t fueled by speculation but rather it’s being driven by “fundamentals of the market”. The longer article goes on to give some really interesting information about the pace of wages vs housing, the rental market and accompanying moratoriums on evictions, and the states in which housing prices are rising fastest as well as where rental prices are falling.
HOUSING MARKET HISTORY
We continue to hear from clients that the beginning of 2021 is outpacing expectations and the land shortages are real. Another article that I came across this week took a look back at the how the housing market has changed over the years and what has driven the changes.
“The median home cost $11,900, while the median income was $5,600, indicating a price-to-income ratio of 2.1. By contrast, in 2019 the median home cost $240,500 with an estimated median income of $68,703, a price-to-income ratio of 3.5.”
As I had hoped, writing this has improved my outlook for the day. Plus, I just remembered that Sunday is the big game and while I could care less about the game, I am deeply invested in the food that accompanies it. I’m currently debating whether to make traditional nachos or go with nacho potatoes and a spicy black bean cheese bake. Of course there will also be wings and pigs in a blanket.