"If you are going through hell, keep going." - Winston Churchill
by Steven Northouse
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Welcome - Newsletter
It's A Hot Housing Market, But Inflation Taking Its Toll
By Alex Veiga, KLove, 21 Sep 2021
Excerpt: Even in the hottest U.S. housing market in more than a decade, new home construction has turned into a frustratingly uncertain and costly proposition for many homebuilders.Rising costs and shortages of building materials and labor are rippling across the homebuilding industry, which accounted for nearly 12% of all U.S. home sales in July. Construction delays are common, prompting many builders to pump the brakes on the number of new homes they put up for sale. As building a new home gets more expensive, some of those costs are passed along to buyers.As the economy starts to emerge from the pandemic, inflations has followed. Tying inflation to the housing market was predictable in the past but the norms have been thrown out. Typically, increased inflation slows the home buyers down has they catch up financially, but with inventory still down, home buyers are still going strong.
August housing starts better than expected
By Brooklee Han, HW, 21 Sep 2021
Excerpt: U.S. homebuilders started construction on 1.615 million homes in August, up 3.9% from July 2021 and 17.4% higher than a year ago, according to a new report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.Across the country, 1.728 million building permits were pulled, which is 6% above the revised rate from a month prior and 13.5% higher than the August 2020 rate. Additionally, 1.33 million homes were completed, a decrease of 4.5% from July 2021, but this is still 9.4% higher than a year prior. After a couple of months have passed, new construction is starting to hit the market. If the weather holds in favor of the contractors, more inventory will be seen on the market and more interest from home buyers.
Housing Market Shifts From White-Hot to Red-Hot
By Kyle G. Horst, MReport Daily Dose, 21 Sep 2021
Excerpt: RE/MAX’s newest monthly housing report for August 2021 signals a slight cooling in the top 51 markets nationwide, but the market still remains near record highs. According to the report, home sales dropped 3.5% month-over-month from July, while the median home price slipped 1.2% to $335,000 in August While some metrics did decline, the news was not wholly unexpected—July-to-August averages for 2015-2019 (2020 was omitted due to skewed data related to the pandemic) show a similar trend. The month-over-month median home price typically saw a 1.0% decrease in previous years.As summer closes, slow downs in the market are expected. Home buyers have been in a frenzy in offering over the list price and driving up values. As more inventory or new construction hits the market, it may qual the frantic drive, maybe just a bit.
Issue: 21 Sep 2021
Measuring with ANSI & the 2021 ANSI UpdateBy Appraiser eLearning, posted 21 Sep 2021Excerpt: In-depth training on measuring residential square footage using the 2021 edition of the ANSI® Measurement Standard. Finally, a universal educated process to standardize measuring the square footage of a home. ANSI has put together a course that every appraiser needs to take when starting in this profession. Though trainers do have influence, using the phrase, “That’s how we always did it.” Is not credible or acceptable.
By Steven Northouse
I was inspecting a log home. The homeowners had it built about a year ago. They showed me all the unique rooms and explained in detail everything about their wonderful home. Everything was done in a craftsmanlike manner and attention to detail was apparent in each room. While walking into the master bedroom with vaulted ceilings with the homeowners, suddenly there was a loud report like a gun shot. As it took me completely by surprise, I said an explicit with a, “WHAT WAS THAT!”. The homeowner replied, “That’s why we are selling.”. Apparently, as the house was built with complete logs of lumber, the logs were still green. As the logs dried, they occasionally “crack” and the report was of the wood drying. The homeowners had enough, as the sound would wake them in the middle of the night, constantly. I wondered why they both looked so tired.
Shop our newest offers and innovations - SamsungBy Samsung, posted 21 Sep 2021Excerpt: For a limited time only, on Samsung.com/Shop Samsung App, pre-order or purchase a new qualifying Galaxy device (“Qualifying Purchase”), send in your qualifying trade-in device to Samsung through the Samsung Trade-In Program, and if Samsung determines your trade-in device meets all eligibility requirements, you will receive a trade-in credit specific to your qualifying trade-in device to apply toward your Qualifying Purchase. The use of a computer, software, laser measuring device is all good but having a reliable cell phone should be the number one tool in the appraiser’s arsenal. I tend to update every couple of years as technology advances. Balancing price with proficiency is challenging with new devices.
NAHB Housing Market Index: "Builder Confidence Steadies as Material and Labor Challenges Persist" By Jill Mislinski, Advisor Perspectives, 20 Sep 2021Excerpt: The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook. The latest reading of 76 is up slightly from last month. Challenges in labor retention and the cost of material is new construction has always been a concern to investors and contractors. NAHB is a good source of information as it does have a finger on the pulse of this segment of the housing market.
Labor, building material shortages depress U.S. single-family housing starts
By Lucia Mutkani, Reuters, 21 Sep 2021
Excerpt: WASHINGTON, Sept 21 (Reuters) - U.S. single-family homebuilding fell for a second straight month in August as builders continued to struggle with shortages of materials and labor, suggesting the housing market could remain a drag on economic growth in the third quarter.The report from the Commerce Department on Tuesday also showed the number of houses authorized for construction but not yet started raced to a record high last month, a sign of reluctance by builders to take on new projects. Going into the summer season, construction materials were scarce, and builder were hesitant to start any new construction. As prices are returned to an acceptable margin, new construction has started again. Was it a little too late to increase the inventory?
We all have those photos that just make your head spin. The shocking moments when you are looking for your subject and checking addresses, you look ahead a see a house and you mutter to yourself, “Please not that one, please not that one!”. Then there is the “Oh, My!” house that when walking around measuring and you open the gate into the backyard and viola. Or, the moment you step inside of the subject and see, find, smell, etc. something that hits you in the face. We all have had our hoarders, collectibles, laundry everywhere, cats, dogs….On the other hand, there are homes that when you pull up to or go inside that it strikes you as awesome! Though rare, it does happen and worth sharing. We would like to hear from you about your experiences so that we can share it with others with our Appraiser Tales section. Also, give us a couple photos to post to our Gallery for prosperity. commentsAT@AppraiserTalk.com
Unanswered Questions – Part 2
By Brent Bowen, Appraisal Buzz, 20 Sep 2021Excerpt: This is the second article in a series which discusses some difficult theoretical questions with which appraisers have been confronted in a very practical way. This article will pick up where the last one left off, so you will definitely want to read Part 1 of this series before continuing. With that said, let’s move forward with the second question: How do I reconcile comparables with a wide range of adjusted sales prices? Appraisers are confronted with many questions from the homeowners to the AMCs/lenders/clients. Have a base knowledge and understanding of profession is a must and continuous awareness of the changes in the housing market, lender expectations, etc. is always a challenge. Experience does have its merits but being up to date is key to growth.
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Why Is the U.S. Housing Market So Out of Whack? What Homebuyers Need To Know Right Now
By Elena Cox, realtor.com, 20 Sep 2021
Excerpt: There’s never been a housing market quite like this before.Today’s real estate agents are pulling double duty as therapists, consoling heartbroken homebuyers who lost out on their fifth—or 15th—home. First-time homebuyers around the country are being outbid by investors—some of whom are willing to pay more than $100,000 over asking price. Wealthy buyers offering all cash for second homes are sending prices ever higher, pushing the dream of homeownership out of reach for many folks.Meanwhile home sellers are enjoying the benefits of life in the fast lane: the ultimate seller’s market. Can all this last? Is this really going to become the new normal? The current housing market has continued to be driven by non-traditional forces. Home buyers are offering multiple offers, which in turn has driven the prices up and decreasing the starved inventory. This ‘trend’ has become the norm, but is it sustainable?
DataMaster for AppraisersBy DataMaster, posted 21 Sep 2021Excerpt: The gold standard of appraiser software. Our flagship tool will help you save an hour per report. Let us move your data so you can analyze it. Utilizing different sources to enhance and support your Appraisal Report is essential in keeping your product relevant. There are many sources or products that do auto-populate data into your report, but remember you are still responsible for the data that is in your report. If auto-populating all your data without appraiser input or analysis is nothing but an AVM.
Americans are pissed about the housing market — they haven't hated it this much in 4 decades
By Ben Winck, Insider, 20 Sep 2021
Excerpt: Last year, everyone was excited to buy a house. This fall, they're pissed.Just 29% of Americans said in September that it was a good time to buy a home, according to data from the University of Michigan's Surveys of Consumers. That's the smallest share since 1982 and close to record lows. The majority was excited about homebuying just months ago: 62% said it was a good time at the start of the year and 65% said so in March 2020, when the pandemic first slammed the US.“it is a good time to buy a home.” This quote has been circulating continuously over the past two years. Buy now before the prices go up further is the slogan but with prices increasing and driving typical home buyers out of the market, when will it stop?
First, for those who have served in our Armed Forces, I want to thank you for your service! I know firsthand the sacrifice and dedication it takes to be a member of our Armed Forces. I spent fifteen years combined with active duty and the reserves, CONUS and overseas, peacetime and wartime. I was proud to serve and have not regretted serving one bit. Now a disabled veteran, I know there is so much available for veterans out there. It can be daunting or overwhelming to find what is available, but I hope you will find information here that may be useful.