BrokerPulse

RealTrends Q4 2021 BrokerPulse: Office consolidation, boosting agent productivity and core services capture rates continue…

2021 Website Rankings Now Live!

RealTrends website rankings highlights the top real estate websites across the country in 6 total categories for our annual brokerage website rankings.

Real estate teams vs brokerages

Steve Murray and Tracey Velt discuss the profitability of real estate teams vs brokerages, based on the results of the 2021 RealTrends Team Profitability Study.

Study: It’s true, real estate teams outperform brokerage firms

Surveyed real estate team gross margins were an average of 61.8% compared to an average of 13.8% for real estate brokerage firms.

Are We Headed for Recession? What Single-Family Housing Authorizations Predict

Are We Headed for Recession?

What Single-Family Housing Authorizations Predict

Single-family housing authorizations decreased for the second-consecutive month in December, according to BuildFax’s Housing Health Report. From November to December 2018, BuildFax noted a 0.95% decrease in single-family housing authorizations, and year-over-year, there was a 3.76% decrease. This is notable because single-family housing authorizations are highly predictive of recessions, said Holly Tachovsky, CEO of BuildFax.

“The potential for an economic downturn has been discussed over the past few months as more signals of a recession come into alignment,” said Tachovsky. “We’ve been tracking single-family housing authorizations daily for a more granular understanding of whether a decline might be on the horizon,” she added, noting that BuildFax has also been monitoring interest rates and changes in home prices and inventory.

The trailing three-month outlook on single-family housing authorizations has the highest correlation to signals of a possible economic downturn, and with the 1.22% decrease among other housing activity declines, it’s a sign worth monitoring. In other words, it’s still too soon to know.

Construction activity informs economic health analyses, Buildfax COO Jonathan Kanarek explains.

“National construction activity has been and will continue to be a go-to indicator for economic health,” say Kanarek. “The health of the housing market is two-fold. Of course, it’s important to see the growth of new construction as a critical indicator of economic health, but remodeling and maintenance specifically measures the health of the existing housing stock and consumer confidence.

Property owners are disinclined to start a remodeling project, which is often a substantial undertaking, if there’s anxiety in the market, low consumer confidence, or decreased access to capital. And structures that do not see regular maintenance activity will become greater risks, leading to a higher propensity for damage in the face of convective storms or natural disasters. These factors together (new building, remodeling and maintenance) provide a comprehensive picture of the health of U.S. housing stock.”

Buildfax’s Housing Health Report

Most Popular Articles

RE/MAX redoes books after outside audit

RE/MAX has preliminarily announced a $25.1 million loss for the third quarter as the venerable and distinctive real estate company juggles expansion and redoing prior financial disclosures.  

Nov 23, 2021 By