Home Builder Sentiment: What Does It Mean?

Recent Home Builder Sentiment: What Does It Mean?

Home builder sentiment is very positive, currently around 70%, which is quite an optimistic outlook on the market. It is, however down from previous months. Why is that? Here’s my take on it all. Let me know what you think. I always love hearing from you.


Hi, everybody. It’s Ruth. I want to talk about the home-builder sentiment that just went down a little bit, and some agents have been talking about it. I spoke to some clients about it, and what does it all mean and why are home builders a little bit less optimistic about the market than they were last month?

The home builder sentiment is still very positive. It’s at 70%, which is quite an optimistic outlook on the market, but it’s a little bit less optimistic than what it was in the previous months, and why is that?

Number one, most builders are really worried that the cost of building is going up, so the cost of the actual materials of commodities, they’re really worried about it putting a damper on profits.

Number two, so much of the housing that has been built has been around luxury, high-end housing, and that market is actually slowing down considerably, so the luxury market has slowed, and we’re seeing that across the country in various price ranges, whatever the luxury echelon is in every market.

What does that also mean for home buyers? Hopefully, there will be a little bit more investment into smaller homes and entry-level homes, which is what home buyers really need and what we really have a shortage of. We definitely have a shortage of that in the Boston area.

Are we seeing a bit of a slowdown in the market? Yes, we are seeing across the board a slowdown in terms of the number of offers we’re getting on properties and the foot traffic we’re getting at open houses.

I’m talking to some agents from across the country. Everybody’s experiencing this, so properties are staying on a little bit longer, and the bidding wars are not as dramatic as they have been.

Is it still a seller’s market? Yes, but it is evening out a little bit in the past couple of months. Finally, for buyers, it has been a little bit easier to pick up the properties they want to live in.

If you have any questions, call, text. Write a comment below. Love hearing from you.

Brighton, MA condos

Brighton, MA Condo Update: Summer Numbers, Fall Predictions

The Brighton condo market has seen a visible change for the better this summer compared to last, and I’ve put together some numbers for you to see.  Notice average prices are up 8%, and days on market as much shorter, 33 days less time on market!  The number of sales during the summer of 2011 and 2012 are fewer but I think this only points to a very dynamic fall.

Brighton, MA condos

One of my favorite statistics is the average sale price to original price ratio.  This number tells us how far apart buyers and sellers are.  The lower the number, the more price reductions and negotiations.  SP:OP in Brighton is up 2%.  It is now at 96%, which means the final sale price is on average 4% lower than the asking price.  A shrinking gap indicated a tightening market.

Expect a busy fall real estate market for Brighton, MA condos.  I have several listings coming on, and sellers are excited to finally be able to move into bigger homes, or sell unwanted investment properties without losing money.  This is the first time since 2008 that I can regularly give home owners in Brighton good news.

Do you want some good news?  Give me a call and let me know if you are ready for a bigger home, or you are sick of being a landlord.  It may not be your time to sell quite yet, but you may be surprised.