Part of the value in comparing and contrasting different reports on a similar or even the same issue is that there are instances when new light is shed on the topic.
In the case of CNBC’s conventional housing report, they’ve emphasized that while demand has soared, the number of existing homes on the market has also dropped sharply.
Two of CNBC’s bullets today are as follows.
- “Sales of newly built homes jumped to the highest level in 14 years in August, but builders’ supply dropped to just 3.3 months’ worth at the current sales pace.”
- “While the pandemic created huge demand from buyers, it did just the opposite for potential sellers. About 400,000 fewer homes have been listed for sale since the pandemic began, according to realtor.com.”
With that backdrop, following this evening’s quotable quotes, left-right headline recap, and market summary graphics at the closing bell, is our featured focus on the surge in conventional housing vs. the tepid performance of HUD Code manufactured homes.
Quotes That Shed Light – American Social, Industry, National Issues..
Headlines from left-of-center CNN Business
- Fact-checking what Trump supporters see
- President Donald Trump speaks to supporters during a rally at the Bemidji Regional Airport on September 18, 2020 in Bemidji, Minnesota. Trump and challenger, Democratic presidential nominee and former Vice President Joe Biden, are both campaigning in Minnesota today.
- Trump’s use of false content is often defended as humor. His supporters aren’t always in on the joke
- Weeks before election, Facebook shuts down alleged Russian military intelligence operation
- Racism has cost America $16 trillion this century alone
- Economists are growing more worried about the recovery. Blame Congress
- Why Chinese stocks could struggle no matter who wins in November
- How Athleta grew its athleisure business during the pandemic
- Mark Cuban calls for $1,000 stimulus checks every two weeks through November
- Buffett’s Berkshire backs Scripps deal to buy ION for $2.7 billion
- A cornerstone of British society may not survive the pandmeic
- Google updates Maps to show how bad Covid is in your area
- The redesigned Echoes and everything else Amazon announced today
- Shoppers wearing face masks leave a Costco wholesale store in Washington, D.C., the United States, Aug. 14, 2020. A new ensemble forecast published by the U.S. Centers for Disease Control and Prevention has projected up to 200,000 total COVID-19 deaths in the U.S. by Sept. 5.
- Costco is missing out on an exploding grocery trend
- Amazon’s Ring will sell a $250 security drone that flies around your home
- The newly renovated entrance to the Olive Garden restaurant in Times Square in New York is seen on Thursday, December 12, 2019.
- NYC dining rooms are still closed. That’s squeezing Olive Garden’s best restaurant
- MARKETS
- READY FOR FALL
- Pumpkin spice mac and cheese is coming but there’s a wait list
- Even pumpkin spice isn’t safe from the coronavirus
- Hershey’s new website maps out how to trick-or-treat safely across the United States
- Dunkin’ and Harpoon team up for PSL-flavored beer
- Starbucks brings back PSL earlier than ever
- LAW & ORDER
- Pedestrians wearing protective face masks walk past the Westpac Banking Corp. (Westpac) logo displayed at a branch in Sydney, Australia, on Tuesday, Aug. 18, 2020. Photographer: Brent Lewin/Bloomberg via Getty Images
- One of Australia’s largest banks hit with record $920 million penalty
- Chinese tycoon critical of Xi jailed for 18 years
- Herbalife to pay $123M to settle bribery charges
- Ex-Nissan exec pleads not guilty in Japan trial
- Daimler to pay $1.5B in emissions cheating settlement
Headlines from right-of-center Fox Business
- MARKETS
- Dollar direction pointing toward this election outcome
- The U.S. Dollar Index, which tracks the dollar against a basket of its peers, has climbed 0.9% since its July 31 close.
- Goldman Sachs: Biden win could accelerate dollar’s drop
- TECHNOLOGY
- Google, Facebook and Twitter CEOs could face Senate subpoenas
- MEDIA
- Hulu apologizes for promoting Breonna Taylor documentary amid indictment news
- POLITICS
- Senate advances stopgap funding bill to avoid government shutdown
- POLITICS
- Kudlow: WH has money to ‘repurpose’ for additional coronavirus stimulus
- Trump won’t support economy-wide coronavirus shutdown: Kudlow
- ARACHNIDS TO ORDER
- TECHNOLOGY
- Ex-eBay workers to plead guilty to sending spiders to bloggers
- PARTY TIME!
- LIFESTYLE
- This store to open pop-ups nationwide, hire 20,000 temporary employees
- FEEL GOOD FLIGHT?
- LIFESTYLE
- United Airlines offering this COVID-19 test to passengers
- REROUTED
- LIFESTYLE
- 5 Royal Caribbean cruise ships moved to summer 2021
- Cineworld has financial downturn due to closures caused by virus
- MASSIVE DROP
- LIFESTYLE
- Cineworld has financial downturn due to closures caused by virus
- ‘DISMISSIVE DIRECTIVES’
- MARKETS
- Ray Dalio’s controversial education philanthropy hit with ‘abuse’ lawsuit
- NEW START
- REAL ESTATE
- Former ‘Real Housewives’ star closes on this Calif. home
- LOVIN’ IT
- FOOD & DRINKS
- McDonald’s reportedly testing food loyalty program
- TWEET HEAT
- SOCIAL MEDIA
- Twitter users say Breonna Taylor posts deleted, threats to ‘burn’ city unchecked
- VIDEO
- Democrats’ Supreme Court, filibuster plans are ‘nothing new’: Sen. Rick Scott
- LIFESTYLE
- From quick shortcuts to slow cookers, how we’re eating now
- SPORTS
- Ryan Reynolds, Rob McElhenney in talks to acquire fifth-tier Welsh soccer team
- LIFESTYLE
- SEE PICS: The Rolls-Royce Ghost Extended is a very long luxury car
- POLITICS
- Ex-astronaut now running for Senate makes Snapchat history on trail
- RETAIL
- Sephora launches one-hour delivery with Instacart
- POLITICS
- AOC calls on Cuomo, de Blasio to raise NY taxes: report
- MARKETS
- W. Scripps nears $2.65B takeover of ION Media in Berkshire-backed deal
- TECH
- Apple critics form coalition to challenge App Store fees
- REAL ESTATE
- Shaq buys $765G Las Vegas home near his Big Chicken restaurant on the Strip
- MARKETS
- Airline passengers want to see barriers to boost confidence: industry executives
- TECHNOLOGY
- Amazon launch event: What to expect
- LIFESTYLE
- California moves to end sales of new gas-powered cars
- NEWS
- Nobel winners to get $110,000 raise as prize money increased
- MARKETS
- Procter & Gamble calls for change to annual TV ad-buying process
- LIFESTYLE
- Disney delays ‘Black Widow,’ Spielberg’s ‘West Side Story’
- MONEY
- This lesser-known retirement savings tool is loaded with tax benefits
- LIFESTYLE
- Times Square to ring in 2021 with digital New Year’s Eve celebration
- MARKETS
- WeWork sells majority stake in China business, cutting costs
- MONEY
- Mortgage rates stay near record-low at 2.9%
Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus –
Where Business, Politics and Investing Can Meet
CNBC said that “New home sales crush expectations, but the supply is running out.”
Exceptional demand for new and existing homes, brought on by the stay-at-home culture of the coronavirus pandemic, has the housing market severely depleted, according to that same report dated 9.24.2020. It added the following.
- Sales of newly built homes jumped to the highest level in 14 years in August,
- but builders’ supply dropped to just 3.3 months’ worth at the current sales pace.
- A six-month supply is considered a balanced market.
- Supply was at 5.5 months in August 2019, according to the U.S. Census.
- The situation is even worse in the market for existing homes. It’s down nearly 19% annually to a three-month supply, according to the National Association of Realtors.
“Housing demand is robust but supply is not, and this imbalance will inevitably harm affordability and hinder ownership opportunities,” said Lawrence Yun, Ph.D. and Realtors’ chief economist. “To assure broad gains in homeownership, more new homes need to be constructed.”
“The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added,” said Javier Vivas, director of economic research for realtor.com. “Adding to the inventory issues, thousands of previously vacant homes, such as second homes and rentals, have been reoccupied by their owners during the pandemic, effectively taking them off the market.”
- Single-family housing starts rose slightly in August, according to the U.S. Census, up about 12% annually.
- That, however, is still lagging the current demand. The number of homes under construction was just 1% higher than a year ago.
- Numbers of builders shut down operations in March and April, as the economy shuttered.
- Then they were blindsided by the soaring demand in May.
- They are now faced with a dwindling supply of finished lots as well as skyrocketing prices for lumber.
- Some big builders are slowing production.
“As we witnessed lumber prices accelerate throughout the quarter, we deliberately sold today’s current inventory and limited sales on tomorrow’s yet-to-be started homes,” Lenna Chairman Stuart Miller said on the homebuilders’ latest earnings call.
- Lower-priced homes are in far higher demand, especially from millennials now leaving urban apartments.
“All of the demand increase for homes in August came from the below $500,000 price point, particularly those priced below $300,000 where demand is the greatest,” noted Peter Boockvar, chief investment officer with Bleakely Advisory Group. “Below $300,000 is the sweet spot for the first-time buyer. Low rates are certainly helping but it is only offsetting the rise in prices.”
All of this data should spell a surge in manufactured housing.
But even as autos, RVs and conventional housing have surged, manufactured housing has continued to lag, as the quote in the quotable quote segment above from Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) reflects.
The linked reports provide a mosaic that logically point to these prima facie points.
- The claims by the Manufactured Housing Institute (MHI) that their new class of homes called “CrossModTM” homes have fallen flat.
- That calls into question claims by made MHI about their so-called “focus groups” and other “research.”
- There is a growing body of direct and indirect evidence that MHI is working for the interests of “consolidators” rather than for industry growth.
- By contrast, MHARR has been pressing for the full and proper implementation of existing laws that if they were being correctly applied could lead to a renaissance for the manufactured housing industry.
See the related reports for more. This evening’s industry-connected stock report equities report follows the related reports, as they do every business-nightly report.
Program note: a new MHProNews exposé is pending. Watch for it.
Engagement notice. MHProNews’ industry-leading emailed headline news has surged in under 2 months. While some dislike this or that report, professionals routinely respect evidence based reports. To see the graphic full size, click to open. More evidence that the industry pros and researchers find MHProNews to be the most credible trade media in all of manufactured housing.
Related, Recent, and Read Hot Reports
“Home Sales Continue to Amaze,” NAR’s Lawrence Yun, plus Manufactured Home Investing, Stock Updates
Manufactured Housing Institute Warns Members – Pondering Legal Action, Insider Insights
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.
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- 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).
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Fall 2020…
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.
Enjoy these ‘blast from the past’ comments.
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Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
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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.
