Below are comments from RCLCO’s Gregg Logan on the New House Sales numbers that were just released.
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“The recovery in the new home market continues, as confirmed by the Census Bureau release of the May 2020 sales figures, showing an increase of almost 17% over April 2020 sales. Although new house sales declined substantially in March, by Mid-April, even before the States began tore-open, home builders and community developers were reporting an increase in new house sales. That trend has obviously continued in May and we expect continued strengthening in the housing market will be demonstrated when the July figures are released a month from now. (Sales of new single-family houses in May 2020 were at a seasonally adjusted annual rate of676,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development).
There has of course been some concern about what would happen when the impacts of the government “stimulus” winds down, but so far the numbers are looking good for the housing industry. Prior to the social and economic upheaval of the pandemic ,there was already a great need to update and improve the consumer experience around home buying, and those builders and developers who are already utilizing online and virtual technology to make such improvements have had a significant advantage during this period of social distancing. While many builders and developers were already using online and virtual technology to enhance their sales and marketing, those tools are still underutilized in the real estate space. Builders and developers who had previously made investments in technology have been rewarded with less impact on their traffic and sales during this health crisis, and the current crisis has forced other builders and developers still on the fence to revisit their strategies for adopting online and other technology-oriented tools.”
About the Author
Gregg Logan, Managing Director, Director of Community And Resort
Over the past 30 years Gregg has worked with leading real estate developers, land owners, investors, builders and public sector entities, helping them make the best development, investment and/or planning decisions for their real estate. Gregg’s advisory work has included market evaluations and strategies for residential, commercial, and mixed-use developments; town centers and suburban business districts; and economic development studies for cities, counties, and community improvement districts.