NAHB: Home Builder Confidence Slips in June

Whats Ahead For Mortgage Rates This Week June 1 2015Home builder confidence fell slightly in June to a reading of 59 according to the National Association of Home Builders Housing Market Index. Analysts had expected no change to June’s reading of 60. June components of the HMI were also lower.

Builder confidence in current market conditions dropped by one point to 63; builder confidence in market conditions over the next six months fell three points to a reading of 66. The reading for foot traffic in new single-family developments dropped one point to 55. Readings over 50 indicate that more builders than fewer are confident about housing market conditions.

Are Housing Markets Cooling Down?

A statement released by NAHB said that June’s readings were consistent with an ongoing gradual housing recovery. In related news, real estate analysts are seeing similarities in today’s level of speculation to the pre-recession housing bubble that was fueled by speculation. More “mom-and-pop” investors are entering the market instead of seasoned institutional investors, which suggests that institutional investor interest is slowing.

In June, 2.50 percent of homes were purchased by institutional investors as compared to a peak of 9.80 percent in February 2013. Red flags suggesting that housing markets are cooling down appear consistent with June’s NAHB Housing Market Index.

Too much speculation can create a housing bubble, which would burst when demand dries up due to overly inflated home prices and falling demand for homes. Slim supplies of available homes and rapidly rising home prices are obstacles for home buyers. Home builders continue to cite low supplies of suitable land and labor shortages as obstacles to home construction.

Short Supply of Homes, Affordability Issues Persist

In a report separate from the NAHB Housing Market Index, Fannie Mae economists said that they expect single-family housing starts to increase by 13 percent in 2016. Any increase in home building would help reduce the shortage of available homes. The willingness and ability of builders to produce more affordable homes is a key aspect of maintaining healthy housing markets. Strong competitions for homes and high home prices in major metro areas have made home ownership impossible for many would-be buyers. Short supplies of available homes are discouraging those who are prepared to buy but can’t find homes they want.

Unless low supplies of homes and affordability concerns are resolved, overall market slow-downs are likely to occur at some point. Indications that professional investors may be slowing their former pace of snapping up homes could suggest that hot housing markets are starting to cool off.

3660 E Montecito Avenue Phoenix, AZ 85018

$449,000
2 Beds
2 Baths
1,289 SqFt
Status Active
MLS # 6614597
Property Type Townhouse
Price Type --
GORGEOUS REMODEL! Nestled in the popular Arcadia Villa Rey! This lovely home features BRAND NEW LVP flooring throughout, NEW top to bottom paint and a completely remodeled kitchen boasting wood cabinets, waterfall quartz counters , BRAND NEW stainless steel appliances and an open breakfast bar! Continue to the main suite, showcasing a beautiful remodeled en-suite, walk-in closet, & a separate outdoor access. ! Located in the very desirable Arcadia area. This gem will not last long!

2302 N Central Avenue Phoenix, AZ 85004

$449,000
2 Beds
2 Baths
1,277 SqFt
Status Active
MLS # 6599361
Property Type Apartment
Price Type --
WOW! Simply-stunning complete REMODEL of gorgeous condo in historic Willo District with amazing views of downtown and the Valley! Spacious split-floorpan 2 bedrooms/2 baths + Den/Office. Bright, open all-new kitchen with beautiful cabinets, quartz countertops, and stainless-steel appliances including gas cooktop. Contemporary styling throughout with popular flooring and fixtures. Dramatic bathroom remodels for both bathrooms. Private patio with panoramic views of the Valley! High-end complex with 2 parking spots in underground garage, gated entrances, heated lap pool, fitness room, and more! Light rail station literally out the front door. Lots of restaurants, shops, and extremely close to the Heard & Phoenix Art Museums.This remodeled gem will give you the lifestyle you want!

5900 E Hickory Court Hereford, AZ 85615

$449,000
3 Beds
2 Baths
2,389 SqFt
Status Active
MLS # 6621675
Property Type Single Family Residence
Price Type --
Stunning views will take your breath away. Located in the gated community of Three Canyons. This beautiful home sits on a 1-acre lot, with almost 2400sqft of spacious living. There are 3 generous sized bedrooms plus a separate office with double doors off the foyer entrance. 2 baths; master offers a garden tub & walk-in shower. Great room with adorable built-in shelves, family room, & large kitchen w/stainless steel appliances. Oversized laundry w/cabinetry, countertop & closet. 3-car garage w/built-in shelving, workbench & water softener. Step out back through French doors to a large covered porch & extended patio. Fully fenced block wall w/RV & pedestrian gates. Incredible views of the majestic Huachuca Mountains. High Speed Internet is included in the annual HOA assessment.

12926 W Beechwood Drive Sun City West, AZ 85375

$449,000
3 Beds
2 Baths
2,454 SqFt
Status Active
MLS # 6635070
Property Type Single Family Residence
Price Type --
Don't miss this desirable Castillo model now on the market. This 3-bedroom, 2 bath split bedroom floor plan has a great deal to offer. Laundry has been moved in from garage adding square footage and an office/craft area. No popcorn ceilings and no carpet in this house! There's plenty of outdoor living space with the front courtyard and the back covered patio. Back yard provides exercise & relaxation in one with its ''Endless Pool'' & Hot Tub combination! Located in the heart of Sun City West, this home is close to shopping, restaurants, golf and Rec Centers! Own this great home and begin enjoying all the amenities of Sun City West!