A very official-sounding report called “Government Regulation in the Price of a New Home” released by the National Association of Home Builders (NAHB) that has some surprising info. It claims that government regulations and the cost of complying with them make up nearly one-fourth of the price of a new home. Think about that as you walk through the model on a new construction project or a house on the Parade of Homes! You can read about it yourself at https://www.nahb.org/en/news-and-publications/press-releases/2016/05/regulatory-costs-account-for-nearly-a-quarter-of-the-price-of-a-new-home.aspx .
Apparently, the costs associated with regulation have jumped 30% between 2011 and 2015 which coincides with the launch of the main agency and many new rules associated with the Dodd Frank reform bill. NAHB’s CEO Jerry Howard says “The cost of regulation in the price of a new home is rising more than twice as fast as the average American’s ability to pay for it. That is simply not sustainable.” Even though the rules and regulations that have been created for and imposed on real estate and mortgage transactions were mostly created by politicians, our “On the House” blog isn’t about politics. We’re here to share important and interesting news that affects consumers, mortgage loan officers and Realtors.
We at GCS Title think the takeaway is this: The NAHB report highlights how many regulations there are and we’re here to help consumers and our real estate and mortgage partners navigate the rules to successful closing. Our entire team is dedicated to making the process as easy and comfortable for everyone involved. Got questions? We’re here to help!
What would have to happen for you to say “I feel the best I have in 10 years!”? That’s basically what the nation’s builders said heading into the third quarter this year. According to the October National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence is the highest it’s been in a decade. The number of buyers visiting models and projects hasn’t increased, but all four regions in the U.S. where this gets measured saw an uptick in builder confidence regarding current sales conditions and expectations for the next six months. Oddly, builders are struggling with availability of lots and labor.
So, what does this mean to MN consumers, lenders and Realtors? It’s a good idea for us to find out how our local MN builders are doing – and how they’re feeling now and about the immediate future. C
Coffee meetings? Some tours? Let’s get together and talk about what they have and how we can work together to find the best value and options for our clients with MN builders!
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