According to Realtor.com, “Home sales will drop, the housing shortage could become the worst in U.S. history, and home values will shrink in some cities,” said CNBC. That 2020 forecast from Realtor.com is from an organization with one of the largest databases of housing statistics available. As troubling as that could be for existing housing sellers or potential buyers, it should spell opportunities for manufactured housing. However – and that ‘big but’ – will be our focus for this evening’s market focus.
Longtime readers please note there are a few tweaks to some of the standard portions of our evening market/investing report. Read carefully as some changes of the ‘standard text’ that follows before our left-right headlines and also in other features near the end of tonight’s reports.
Every evening our headlines that follow provide snapshots from two major media outlets on each side of the left-right news spectrum that reflect topics that influence or move investor sentiment. In moments on this business evening report, you can get ‘insights-at-a-glance.’
This report also sets the broader context for manufactured housing markets, in keeping with our mantra, “News through the lens of manufactured homes and factory-built housing” ©.
We begin with headlines left-of-center CNN followed by right-of-center Fox Business. We share closing tickers and other related data courtesy of Yahoo Finance, and more. 5 to 10 minutes reading this MHProNews market report every business night could save you 30 minutes to an hour of similar reading or fact-gathering elsewhere.
Perhaps more important, you will get insights about the industry from experts that care, but also dare to challenge the routine narrative that arguably keeps manufactured housing underperforming during an affordable housing crisis.
Newsy, Peeling Back Media Bias, Manufactured Housing Sales, Investing, Politics, and You
Headlines from left-of-center CNN Business.
- Uber releases safety report – Drivers for ride-hailing giants Uber and Lyft are planning to turn off their apps to protest what they say are declining wages at a time when both companies are raking in billions of dollars from investors.
- The company reveals 5,981 reports of sexual assault over 2 years
- Why American jobs could bounce back
- Saudi Aramco raises $25.6 billion in the world’s biggest IPO
- 4 consumer brands that came back from the dead
- Apple says it isn’t tracking your phone if location sharing is turned off
- Elizabeth Warren wants to make it harder for big banks to get bigger
- The trade war is hurting Jack Daniel’s, but it isn’t hiking prices yet
- How Fortnite changed Nintendo and GameStop forever
- He tried to fix Macy’s. Now he is the new Tractor Supply CEO
- GM and LG to build a $2.3 billion battery plant near Lordstown
- Nancy Pelosi wants to scrap legal protections for Big Tech
- Ex-Playboy model Karen McDougal sues Fox for alleged defamation
- The Santa Claus business is booming, even as malls struggle
- Beyond Burgers are coming to Costco
- United Continental Holdings CEO Oscar Munoz is interviewed on the floor of the New York Stock Exchange, Wednesday, Jan. 24, 2018.
- United Airlines CEO Oscar Munoz is stepping down
- SpaceX will launch genetically enhanced ‘mighty mice’ to space
- Boeing’s Starliner capsule launches key test before first astronaut flight
- Virgin Galactic unveils Under Armour spacesuits
- Elon Musk and NASA chief Jim Bridenstine show solidarity after sparring over Crew Dragon spacecraft
- SpaceX prototype blows its top during ground test mishap
- Wall Street stocks were mostly lower early Monday at the start of a week jammed with news, including a Federal Reserve decision and Apple results.
- Here is why stocks are vulnerable to a sharp reversal
- America’s stock market is shrinking. NYSE has a plan for that
- Big Tech’s stock market reign will end in 2020
- Beat the market: Pick the worst stocks that may do a U-turn
- The $4 trillion force propelling US stocks to record highs
Headlines from right-of-center Fox Business.
- Thousands of sexual assaults, hundreds of rapes reported to Uber over 2 years
- The total included 235 reports of rape in 2018 alone, according to Uber’s internal statistics.
- Uber CEO predicts when flying cars will take off, previews ‘Uber Air’
- UPS driver, 3 others killed after chase with stolen truck ends in shootout
- EXCLUSIVE: New energy secretary shares concern about global nuclear power
- Housing agency to name Wall Street adviser before Fannie Mae, Freddie Mac IPO
- Pelosi, Schumer hate ‘tax cuts for the rich’ — except for their kind of rich people
- Trump’s cuts push America’s tax burden to one of lowest levels in the world
- Real estate prices sink in America’s heartland, trail distressed Hong Kong
- What you need to know as IRS makes important changes to key tax form
- Prestigious college delivers big blow to family behind OxyContin
- The small mistake that led customer to pull gun on McDonald’s workers: police
- Bill Nye will take Disney to court, seeking $28 million in damages
- Cellphones are sending more people to emergency rooms, scary study reveals
- Retailers rush to cash in on Pantone’s color of 2020
- How to ensure your freight makes it to the trade show
- Airline admits its pilots are unsafe, bound for ‘serious accident’
- What has Hong Kong residents living in fear
- Peloton investors strap on helmets as shares speed downhill over controversial ad
- Sorry not sorry: Diver labeled ‘pedo guy’ won’t apologize to Elon Musk at trial
- Burger King giving away whopping prizes, including $35K, amid expansion plans
- Tampa Bay Rays’ plans for Montreal games nixed by St. Petersburg mayor
- Subaru’s ‘Share the Love’ charitable campaign to raise $170 million over 12 years
- SpaceX launches beer malt, caring robot and ‘mighty mice’
- How much an affair would cost Justin Timberlake under wife’s ‘love contract’
- Why French economist says American competition is in decline
- Kanye West and Joel Osteen bringing church service to world-famous venue
- GM announcement could mean turnaround for suffering community
- Stocks tick higher after Pelosi says House will forge ahead with impeachment
- US scores trade war win on Trump’s favorite report card
- Lawmakers want to rip up receipts over possible health hazard
- KFC selling fire log that makes your house smell like fried chicken
- FCC probing why cell service went dark during power outages, sparking panic
- NBA’s Adam Silver says cable TV model is ‘broken’ amid ratings decline
- GM CEO explains layoffs, ‘all-electric future’
- What to expect in the November jobs report
10 Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus – Where Business, Politics, and Investing Meet
According to Realtor as cited by CNBC…
- Sales of existing homes will fall 1.8% from 2019, according to the forecast.
- Home prices will flatten nationally, increasing just 0.8% annually, but prices will fall in a quarter of the 100 largest metropolitan markets, including Chicago, Dallas, Las Vegas, Miami, St. Louis, Detroit and San Francisco.
- As demand heats up in the spring, driven by the growing number of millennials entering the market, the supply of homes for sale could hit its lowest in history.
Each of the following pull bullet pull quotes could be a solution for those seeking affordable housing by turning to manufactured homes. There is problem. Despite having good laws that the Manufactured Housing Institute (MHI) say that have asked HUD Secretary Ben Carson in a letter, the is no known record to date of Dr. Carson actually using the words, “enhanced preemption” publicly.
On paper, the problems of the conventional housing sector spell potential opportunities for the manufactured housing industry. Let’s dip into more from Realtor per CNBC.
- Home sales will drop, the housing shortage could become the worst in U.S. history, and home values will shrink in some cities. That’s the 2020 forecast from realtor.com, which holds one of the largest databases of housing statistics available.
- Sales of existing homes will fall 1.8% from 2019, according to the forecast. Home prices will flatten nationally, increasing just 0.8% annually, but prices will fall in a quarter of the 100 largest metropolitan markets, including Chicago, Dallas, Las Vegas, Miami, St. Louis, Detroit and San Francisco.
- It is a seemingly contrary assessment, given the current strength of the economy and of homebuyer demand, but the dynamics of this housing market are unlike any other — the result of a housing crash unlike any other.
- “Real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting,” said George Ratiu, senior economist at realtor.com. “Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford but rather what they can’t find.”
- The supply of entry-level homes is also well below historical levels because during the foreclosure crisis, investors bought millions of distressed properties and turned them into rentals. The bulk of these properties were on the lower end of the price spectrum. The expectation was that as home prices recovered, investors would sell the homes, pocket the profits and return the housing supply to its previous level. That did not happen. The single-family rental market was so strong that investors held the homes, built large-scale, multicity service and maintenance platforms and created a new asset class for even bigger investors to fuel.
- “The supply of rental properties has risen in tandem with demand, while new residential construction has lagged, placing the rental market in a good position to offer alternatives for buyers priced out of their markets,” said Ratiu. “However, the affordability challenge will continue to cast a shadow over housing in 2020, as both home prices and rents remain elevated.”
As problematic as that is for others in the housing industry, those are a road map for more manufactured home sales. Which begs the question. How could MHI or the powers that be in MHVille fumble handoffs like that so routinely? See the related reports that follow.
More Mixed News on October 2019 Manufactured Housing Production, Shipment Data
Giant RHP Properties, Manufactured Housing Institute National Communities Council Member, Facing Senator’s Claim They’re Violating State Law
Need for Workforce Housing Keeps Vacancy Tight and Rent Rising; Investors Eyeing Communities for Yield and Cash-Flow Potential, Says Marcus & Millichap Research, Analysis
Retailer, Producer, Finance Exclusive – Interview with New Class of Manufactured Housing “CrossMod Homes” Developer-Seller
Pendleton, Harper, Bowersox – Manufactured Housing Associations Carrots & Sticks Report – plus Sunday Weekly Industry Headlines Review 11.24 to 12.1.2019
Manufactured Housing Industry Investments Connected Closing Equities Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
- NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
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Disclosure. MHProNews holds no positions in the stocks in this report.
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