This Week in Real Estate: September 11, 2017

The National Association of Home Builders (NAHB) released their 2016 Survey of Construction results This Week in Real Estate, concluding that all nine divisions of the country are off their recession-era lows, but no division has recovered. Below are a few highlights from the first week of September that influence our business:

* New Single-Family Housing Starts By Divisions in 2016 – Long Road Back to Normal. NAHB analysis of the Survey of Construction (SOC) shows that, nationally, there were 779,082 new single-family units started in 2016, 10% higher than 2015. According to NAHB analysis of the SOC data, national new single-family housing starts reached 58% of the pre-recession normal (the average of housing starts between 2000 and 2003) in 2016. Relative to the average annual number of housing starts between 2000 and 2003, the nine divisions ranged between 43% and 86% of that level in 2016. The West South Central Division, at 86%, is closest to recovering and the West North Central Division is furthest away, at 43%. All nine divisions are off their recession-era lows relative to the average activity between 2000 and 2003, but no division has recovered.

* Ellie Mae: Closing Times Jump Significantly From West to East Coast. The average time to close varies significantly from the East to West Coast, according to the Ellie Mae Millennial Tracker. The average time for Millennials, those born from the 1980s to the mid-1950s, to close a loan sits at 60 days in New York, up significantly from the 37 days in California. Across the country, the average time to close was 44 days in July. The average time to close conventional loans remained steady at 43 days as the average time to close an FHA loan increased one day to 44 days in July. The time it took Millennials to close a VA loan dropped from 46 days to 42 days, and the time it took to close an FHA loan saw the most change as it jumped from 45 days to 50 days in July. The average time Millennials took to close a purchase loan held steady at 42 days from June to July while the average time to close a refinance decreased two days to 46 days in that same period. The Millennial Tracker also showed FICO scores increased slightly to 724 in July, up from 723 in June but down one point from July last year. The average FICO score for purchases came in at 748 for conventional loans, 688 for FHA and 742 for a VA loan.

* More People Paying Mortgages on Time. Fewer borrowers are late making their house payments, according to a real-estate data firm, which credits strong employment numbers and tougher lending standards for the decline in delinquencies. Nationally, 3.2% of jumbo mortgages were 30 days or more past due in May, a 1.1 percentage-point decline from May 2016, California-based data firm CoreLogic found. The serious delinquency rate, defined as 90 days or more past due, was just 2.1%—the lowest rate in nearly a decade.

Have a productive week!


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