Left-of-center CNN reported that “NAR’s chief economist Lawrence Yun said the housing market appears to be in a ‘V’-shaped recovery.”
“Home sales continue to amaze,” said Yun, Ph.D. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
A short supply of available homes compared to the high demand will prove to be a challenge, he said.
“Housing demand is robust, but supply is not,” said Yun, “and this imbalance will inevitably harm affordability and hinder ownership opportunities.”
That is just part of what NAR’s Yun had to say recently. It ought to be good news for manufactured housing, if only the industry was performing properly. That and more will be our featured focus for this evening. For newcomers, that follows the quotable quotes, our left-right headline summary, and two of our three market graphic summaries. The final market graphic, which reflects the manufactured housing connected stocks at the closing bell, follow the featured focus and links to recent or related reports.
Headlines from left-of-center CNN Business
- Housing surge
- Homes in the Southern Highlands master-planned community are seen in this aerial photograph taken over Las Vegas, Nevada, U.S., on Thursday, Sept. 17, 2020. Nowhere is the widening gap between real estate and the real economy more apparent than in Las Vegas, where tourism is in ruins, wages are plunging and home prices just keep rocketing higher.
- Home sales reach a 14-year high in August, and prices hit a new record
- Nike shares spike 8% after blockbuster sales
- Commercial real estate flounders as housing market booms
- Facebook takes down accounts it says were run from China and posting about 2020 election
- TikTok says suicide video was part of ‘coordinated attack’
- Chinese tycoon who criticized Xi Jinping’s handling of coronavirus jailed for 18 years
- Uber Eats’ new ad pits Luke Skywalker against Capt. Picard
- Opinion: CEOs, make sure your employees aren’t struggling to get by
- Chipotle brings back its most popular new menu item
- Sizzler, one of America’s first steakhouse chains, files for bankruptcy
- Chicken wings are hot. Big restaurant chains are paying attention
- Reese’s puts pretzels in peanut butter cups, because ‘the hell with it, it’s 2020’
- Tel Aviv set to become first city with electric roads that charge public transportation
- Xbox Series X pre-orders begin, and gamers are eager to buy
- Echelon Prime Smart Connect Fitness Bike for Amazon.
- Amazon is selling a $499 Peloton knockoff called Prime Bike
- RETAIL APOCALYPSE
- A pedestrian walks past a Bed Bath & Beyond store in Farmington Hills, Michigan, U.S., on Friday, July 10, 2020. Bed Bath & Beyond Inc. plans to shrink its store base, closing 200 stores over the next two years in a bid to cut costs and weather one of retail’s most challenging periods yet.
- These 63 Bed Bath & Beyond stores are set to close by the end of 2020
- Bankruptcies are mounting. This is just the start
- Century 21 is closing all of its stores
- SoulCycle competitor Flywheel files for bankruptcy
- JCPenney could be doomed, even as malls race to save it
- PLANET EARTH
- AirbusZEROe Blended Wing Body Concept.
- Airbus wants to build zero-emission planes by 2035. Here’s how
- How climate change could create economic chaos
- Getting to zero emissions could cost $2 trillion a year
- LEGO to phase out single-use plastic packaging
- GE is getting out of the coal power business
Headlines from right-of-center Fox Business
- Gates-backed electric vehicle battery startup to challenge Tesla
- Tesla’s Elon Musk dials down expectations ahead of Battery Day event
- Tesla stock volatile ahead of Battery Day
- Why nearly 9M Americans are in danger of missing out on $1,200 stimulus check
- US household wealth hits record despite coronavirus pandemic
- Fed’s Powell, Treasury Sec. Mnuchin optimistic, but call for more COVID relief
- States, DOJ to meet regarding possible Google antitrust suit
- REVERSE EFFECT
- ‘Cuties’ movie sees Netflix users flock to the screen due to controversy
- WHERE’S THE BEEF?
- Chipotle’s carne asada returns to US menus, but only temporarily
- RACIAL DIVIDE
- Unemployment gap widens as overall rate falls
- DECIMATING DISNEYLAND?
- Disney Parks chief asks California for help in re-opening
- ‘LASTING DAMAGE’
- COVID-19 has destroyed a significant amount of these franchise jobs
- GAME PLAN
- GameStop soars as activist investor wants to take on Amazon
- LINE OF QUESTIONING
- Chris Wallace selects topics for first Trump-Biden presidential debate
- NEXT STOP: TEXAS?
- US bullet train clears 2 key regulatory hurdles, company says
- How new Netflix programming is boosting sales for this store
- Matt Gaetz: I will be calling for Florida investigation into Bloomberg for potential vote buying
- Nissan starts production of 2021 Rogue at Tennessee assembly plant
- University of California wrongly admitted 64 wealthy students: state audit
- Sizzler says it’s filing for bankruptcy because of this
- Hong Kong Disneyland to reopen after coronavirus closure
- Ralph Lauren to cut 15% of global workforce
- Online used-car retailer Carvana sees record third quarter as vehicle demand rebounds
- Cruise line association announces ‘mandatory’ coronavirus regulations for resuming cruises in the Americas
- This country is selling out of toilet paper as a COVID-19 lockdown looms
- Walmart to test drone delivery of COVID-19 test kits
- Maine officials ramp up coronavirus-related business citations in ‘super-spreader’ wedding aftermath
- FOOD & DRINK
- SEE PICS: Big city restaurant installs ‘space bubbles’ for sidewalk dining
- Only 1 in 4 Americans have made this essential retirement planning move
- Think signing up for Social Security early is a mistake? Here’s why it isn’t
- 74% of hotels may lay off more workers without Congress stimulus deal: AHLA
- Major airline delays decision on pilot furloughs
- FOOD & DRINKS
- Coca-Cola to debut hard seltzer from Topo Chico brand in first half of 2021: report
- Almost 90% of big city’s restaurants, bars couldn’t pay August’s rent in full, survey finds
- Tropical Storm Beta bringing ‘excessive’ rainfall to Houston area, dangerous storm surge after Texas landfall
- Student loan definitions: 14 terms to know before repaying debt
Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus –
Where Business, Politics and Investing Can Meet
“Home sales surged to a 14-year high in August as record low interest rates brought homebuyers out in droves and pushed prices to a new record high,” said CNN. Some bullets from that same source.
- Existing home sales — which includes sales of single-family homes, townhomes, condominiums and co-ops — were up 2.4% in August from July, to a seasonally-adjusted annual rate of 6 million transactions, according to the National Association of Realtors. That was a 10.5% increase from the year before and the highest level since December 2006.
- The median price for all housing types was $310,600 in August, up 11.4% from a year ago when the median price was $278,800. This marks 102 straight months of year-over-year gains. Prices rose in every region across the country.
NAR Says Natural Disasters Worsen Inventory Woes
- Total housing inventory was down 18.6% from a year ago.
- Low inventory has challenged the housing market for the past few years, said the National Association of Realtor’s Lawrence Yun, PhD.
- Now the situation is even worse due to a dramatic surge in lumber prices and other complications from the California wildfires.
That lumber challenge is an issue that MHProNews spotlighted in the report linked below.
“Over recent months, we have seen lumber prices surge dramatically,” Yun said. “This has already led to an increase in the cost of multifamily housing and an even higher increase for single-family homes.”
New housing supply took a hit from wildfires and hurricanes and sales activity weakened, according to Danielle Hale, chief economist for Realtor.com. That is one of several reasons why manufactured homes should be surging. But as this morning’s report reflects, that is not the case.
“The combination of high prices and low supply is going to continue to make finding a home an even more difficult task than it already is,” she said.
Low- and middle-income homebuyers will be the hardest hit, according to Robert Frick, corporate economist at Navy Federal Credit Union. “The combination of higher prices and low supply is shutting many lower-income Americans out of the market, and in some regions with the most expensive housing, even middle-income Americans can’t afford a home,” Frick said. Once more, that’s evidence why manufactured homes should be surging. But instead, the industry is still down year-over-year, for two years running.
Conventional Homes Are Selling Quickly
Homes sold quickly in August, per CNN, with many resulting in multiple offers and all-cash deals.
Properties typically remained on the market for 22 days during the month, according to NAR, which is about the same as in July, but down from 31 days a year ago. A majority of the homes sold in August, 69%, were on the market for less than a month.
“Even continued strong existing home sales don’t reflect how high demand is,” said Frick. “Homes on the market are receiving double-digit offers in some areas of the country, and that demand is further reflected in rising prices.”
All-cash sales accounted for 18% of transactions in August, up from 16% in July. While individual investors or second-home buyers, who account for many cash sales, purchased 14% of homes in August, the higher number of cash offers suggests that home buying is highly competitive, said Yun.
“Some people are trying to distinguish themselves,” he said, particularly in multiple-offer situations.
Yun anticipates strong home sales and high prices will continue throughout the rest of the year.
“If there is a multiple-offer situation, that means there are multiple losers. The people who have been outbid are still in the market,” Dr. Yun said. “There are plenty of buyers in the pipeline.” These are all reasons why manufactured housing should be soaring. But instead, it is snoring. Thanks, powers that be at the Manufactured Housing Institute. See the related reports, herein and below.
Related, Recent, and Read Hot Reports
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).
MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our tenth anniversary and is in year 11 of publishing.
Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
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Disclosure. MHProNews holds no positions in the stocks in this report.
That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.