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U.S. June new home sales at eight-month low; May data revised lower


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https://www.reuters.com/article/us-usa-economy-housing/u-s-new-home-sales-drop-to-eight-month-low-in-june-idUSKBN1KF1ZN

 

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A survey last week showed confidence among single-family homebuilders steady in July, with builders saying “they continue to be burdened by rising construction material costs.” The Trump administration in April 2017 imposed anti-subsidy duties on imports of Canadian softwood lumber, which builders say have significantly raised the cost of a new home.

 

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The Commerce Department said on Wednesday new home sales decreased 5.3 percent to a seasonally adjusted annual rate of 631,000 units last month, the lowest level since October 2017. May’s sales pace was revised down to 666,000 units from the previously reported 689,000 units.

 

Economists polled by Reuters had forecast new home sales, which account for about 10 percent of housing market sales, falling 2.8 percent to a pace of 670,000 units in June.

 

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Government, through zoning laws, needs to get out of the way and allow building in desirable areas. FHA could loosen restrictions on loans for condos as well.

 

I personally don't want a big ass house deep in the suburbs. I'd be more than happy with a decent condo or townhome in a decent part of the city, if I didn't need to pay $500k+ for it

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25 minutes ago, b_m_b_m_b_m said:

Government, through zoning laws, needs to get out of the way and allow building in desirable areas. FHA could loosen restrictions on loans for condos as well.

Never gonna happen.  They'll SLOWLY allow development to maintain prices.

 

I'm buying a place right now, I'd be okay with a sudden price drop! 

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2 hours ago, CitizenVectron said:

Yet every single local realtors association is parroting the same "the market is strong, and it's a great time to sell OR buy!" lines.

A local realtor would tell you that in Antarctica. Last thing they will ever do is discourage you from using their services now. 

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I'm in a new development. They started 4 houses in March and nothing since then. I was talking to builder and he said if I built my house right now vs late last year it would cost $10/sqft more just in lumber costs. 

 

For my neighborhood that would be $20,000-$25,000 increase on most houses. 

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https://www.rgj.com/story/life/2018/06/25/how-many-people-leaving-california-reno-nevada-home/711919002/

Californians continue to leave California in droves, and Reno keeps absorbing them.

Since January, 336 houses, or 9 percent of houses sold in Washoe County, were bought by Californians — more than any other state (besides Nevada). And of those Californian homebuyers, about one in three of them came from Silicon Valley, according to an RGJ analysis of assessor data.

And more Californians could be on the way.

 

About 75 percent of people searching for a new house in Reno are from California, according to Redfin.com housing search data, with just under half from Silicon Valley. Since about 8,000 people migrated to Northern Nevada last year, according to the U.S. Census, that could mean 6,000 new Californians hitting the streets and housing market in 2018.

In total, about 45,000 people left the Bay Area from July 2016 to July 2017, according to U.S. Census net migration statistics. That number has been increasing every year.

The exodus from the Bay Area is so big that U-Haul is raising prices to compensate for demand that outstrips its supply of trucks. A 26-foot rental truck from San Francisco to Reno costs almost $1,200 on a Saturday, while a truck from Reno to San Francisco costs less than $200, according to U-Haul's online price estimator. 

https://www.rgj.com/story/news/2018/05/30/how-renos-median-housing-price-stacks-up-other-cities/637621002/

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In Reno, a $400,000 house still buys a decent amount of space for most family sizes. In most neighborhoods, that price will afford someone a three- to five-bedroom house around 2,000 square feet. In some of the suburbs, houses come with larger lots, up to 10 acres.

https://www.rgj.com/story/money/business/2018/03/20/renos-housing-crisis-so-bad-its-new-york-times/443218002/

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It's not surprising news to Reno, but homelessness, traffic and economic disparity are flowing over the Sierra. Even the New York Times has noticed.

A Tuesday article by the Times's Conor Dougherty, "California Housing Problems Are Spilling Across Its Borders," cites big changes to Reno's gambling economy and "the city’s status as a small, sedate northern answer to Las Vegas." (Kind of cringe-worthy, but basically right, right?)

https://www.rgj.com/story/money/business/2018/06/13/reno-flirts-record-median-home-price-low-supply/698615002/

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Reno house prices nearly reached record territory again in May as low housing supply continued to exert pressure on the residential market.

The median sales price for an existing single-family home in the city of Reno reached $392,500 last month, just shy of the $400,000 record that was set in March. The price is a 2 percent increase from the previous month of April and is up 12 percent from May 2017, according to the Reno/Sparks Association of Realtors.

Despite Reno’s increase, the median house price for the combined Reno-Sparks market stayed flat at $374,000. This was due to Sparks’ median falling to $348,500 after the city set a new record-high in April of $357,500. Also, while house prices reached an all-time high in the last few months, they remain below the housing bubble peak when adjusted for inflation.

Low housing supply remains the main culprit to Reno-Sparks’ rapid increase in home values. New listings in April, for example, were down 13 percent year over year in Reno-Sparks, leading industry watchers to forecast higher prices and lower sales numbers for May.

 

 

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