#underbuild

[beardedmrbean]

A Nebraska lawmaker whose north Omaha district has struggled for years with a housing shortage is pushing a bill that, if passed, could make Nebraska the first in the country to forbid out-of-state hedge funds and other corporate entities from buying up single-family properties.

Sen. Justin Wayne’s bill echoes legislative efforts in other states and in Congress to curtail corporate amassing of single-family homes, which critics say has helped cause the price of homes, rent and real estate taxes to soar in recent years. Wayne said that has been the case in his district, where an Ohio corporation has bought more than 150 single-family homes in recent years — often pushing out individual homebuyers with all-cash offers. The company then rents out the homes.

Experts say the scarcity of homes for purchase can be blamed on a multitude of factors, including sky-high mortgage interest rates and years of underbuilding modest homes.

RISING RENT PRICES PUSH RECORD NUMBER OF AMERICANS TOWARD HOUSING CRISIS, PROMPTING LEGISLATIVE ACTION

Wayne's bill offers few specifics. It consists of a single sentence that says a corporation, hedge fund or other business may not buy single-family housing in Nebraska unless it's located in and its principal members live in Nebraska.

"The aim of this is to preserve Nebraska's limited existing housing stock for Nebraskans," Wayne said this week at a committee hearing where he presented the bill. "If we did this, we would be the first state in the country to take this issue seriously and address the problem."

A 14-page bill dubbed the End Hedge Fund Control of American Homes Act has been introduced in both chambers of Congress and would impose a 10-year deadline for hedge funds to sell off the single-family homes they own and, until they do, would saddle those investment trusts with hefty taxes. In turn, those tax penalties would be used to help people put down payments on the divested homes.

Democratic lawmakers in a number of other states have introduced similar bills, including in Minnesota, Indiana, North Carolina and Texas, but those bills have either stalled or failed.

The housing squeeze coming from out-of-state corporate interests isn't just an Omaha problem, said Wayne Mortensen, director of a Lincoln-based affordable housing developer called NeighborWorks Lincoln.

Mortensen said the recession of 2008 and, more recently, the economic downturn driven by the COVID-19 pandemic made single-family housing a more attractive corporate investment than bond markets.

"When that became the case, housing was commoditized and became just like trading any stock," he said. "Those outside investors are solely interested in how much value they can extract from the Lincoln housing market."

Those corporations often invest no upkeep in the homes, he said.

"And as a result of that, we're seeing incredible dilapidation and housing decline in many of our neighborhoods because of these absentee landlords that have no accountability to the local communities," Mortensen said.

Currently, about 13% of single-family homes in Lincoln are owned by out-of-state corporate firms, he said.

As in other states, Wayne's bill likely faces an uphill slog in the deep red state of Nebraska. At Monday's hearing before the Banking, Insurance and Commerce Committee, several Republican lawmakers acknowledged a statewide housing shortage, but they cast doubt on Wayne's solution.

"You know, you can set up shell companies, you set up different layers of ownership. You can move your domicile base. There's just a ton of workarounds here," Omaha Sen. Brad von Gillern said. "I also — as just as a pure capitalist — fundamentally oppose the idea."

[darkmaga-returns]

Authored by Jack Phillips via The Epoch Times (emphasis ours),

Speaking with NBC News on Thursday, the president-elect was asked about how much it would cost to carry out his deportation plan, which he made reference to numerous times during his presidential campaign.

“It’s not a question of a price tag,” Trump said, adding that “really, we have no choice.”

“When people have killed and murdered, when drug lords have destroyed countries. And now they’re going to go back to those countries because they’re not staying here. There is no price tag.”

His campaign had pledged to expel about 11 million people who are not authorized to be in the United States, although Trump himself has said he believes that as many as 21 million are in the country illegally.

“We obviously have to make the border strong and powerful, and we have to—at the same time, we want people to come into our country,” he said before signaling that the United States still needs legal immigrants.

“And you know, I’m not somebody that says, ‘No, you can’t come in.’ We want people to come in.”

Both Democrats and the nonprofit American Immigration Council have been critical of the mass deportation proposal, with the NGO estimating in a report that Trump’s plan may cost as much as $315 billion overall.

In campaign events and media appearances, both Trump and Vice President-elect JD Vance have said that Americans would see longstanding economic benefits from the deportation plan. During his only debate with Minnesota Gov. Tim Walz, Vance said that illegal immigrants are a reason why housing and rent prices have soared across the United States in recent years.

“Kicking out illegal immigrants who are competing for those homes” would help bring down housing costs, Vance said on Oct. 1.

Some economists have disagreed with Vance’s assertions, saying that the increase in housing prices stems from a long period of underbuilding in the United States due to land-use regulations.

But aside from the economic impact, Vance has argued that illegal immigration has devastated parts of the country, including places that are far from the U.S. border with Mexico. Illegal immigrants have overwhelmed schools, hospitals, and other systems across the United States, he’s said on several occasions, including during his debate with Walz, who was Vice President Kamala Harris’s running mate.

“In communities all across this country, you’ve got schools that are overwhelmed, you’ve got hospitals that are overwhelmed, you have got housing that is totally unaffordable because we brought in millions of illegal immigrants to compete with Americans for scarce homes,” Vance said in his lone debate.

Trump has vowed to invoke the Alien Enemies Act, a 1798 law signed by second President John Adams that allows the president to deport any noncitizen from a country the United States is at war with. He has spoken about deploying the National Guard, which can be activated on orders from a governor.

[st-just]

I’m haunted by the specter of what’s happened over the past decade with homelessness in Los Angeles. In 2016, LA voters overwhelmingly passed Measure HHH, raising taxes on themselves to pay for the construction of new supportive housing to fight homelessness in the city. But the measure didn’t do anything to reduce the permitting barriers to siting affordable housing developments, so actual production fell far short of proponents’ goals. Meanwhile, overall zoning in LA massively underbuilds market-rate housing, so more and more people were becoming unhoused even before the pandemic and the Zoom Shock sent housing demand soaring.

-Matthew Yglesias

[zerogravityinq]

fuck it i wanna talk about bodies!

So Bruce is the closest to his comics canon counterpart - broad shoulders, thick chest, slim waist and narrow hips but thick thighs BUT he does run a bit slimmer than canon Bats does. Like about Pattison's build and gradually getting to how he is in Dan Mora size. I imagine he has longer legs and a relatively short torso in comparison. If this man doesn't wear like a thirty something in pants, i am suing. Like even though he is slimmer doesn't mean he isn't still bulky as fuck.

Harry is the biggest change from his canon counterpart. He has muscles. Not like huge ones because he just isn't genetically built like that but he is a lot more bottom heavy than top heavy. He's not really stocky because he isn't thick. He's very much a sleeper build. A lot of his muscle and weight is in his legs and it shows in his fighting since he's more kick heavy. Shorter legs but longer torso.

Babs, since the Killing Joke did not cripple her, is a lot more balanced. She isn't a crazy powerhouse but she can take a fight and turn it in her favor. She has a stealth build until she becomes a cop. Then she lets it be a bit more obvious she can take down a perp with little help. She has built legs but works to keep her body more balanced.

Dick is also pretty close to how he is in comics but his legs are a bit thicker from his years of broom flying or flying with Wixan. He has equally long legs and torso but he's still shorter than Bruce and Jason. Since he has a lot of mass in his shoulders and arms, he comes off as stocky. Has a pretty face but he wouldn't be able to pass as a girl once he hits puberty.

Tom is the tallest of the gotham vigilantes at 6 ft 6 and he's like 80% leg [jason insists that the other 20% is unadulterated spite but what does he know?] so he looks a lot leaner than he actually is. Like Harry, he just isn't built to bulk up but he is strong. if he puts on any kind of muscles, it is suprisingly in his shoulders and upper arms like Dick. Even when he was Voldemort he was relatively broad shouldered but now he is even more top heavy. He uses his legs a lot but more to extend his reach or to yank someone in range.

Cass is just as she is in canon so no notes. [kisses her forehead] you are perfect

Jason is one of the bigger changes - he isn't full of Lazurus roids and comes by his build honestly. He's a lot more balanced in his build, a complete all rounder since he does a little bit of everything. Most balanced body out of the Bats aside from Cass and maybe Babs.thick arms, legs, chest and he isn't as heavily scarred as his canon counterpart - magic heals a lot.

Jazz is far more muscular than her canon counterpart with her getting into training instead of just some martial arts lessons with her mother. She takes a lot more after Jack with his height and leans more bulky but not as say Jason or Bruce. Her hips are pretty wide though which she inherited from her mother and sometimes uses that to hip check goons and some of the skinnier villains [like Scarecrow and he gets so mad about that lmao].

Steph is pretty close to her canon counterpart. She is a bit more brawl heavy than she is in canon and is more likely to use her feet than her hands since she needs her hands to do medic things. Aside from that, pretty much the same.

Conner, by virtue of being an imperfect clone, is also different. He does have the underbuild of Clark but he's thinner and more lanky like Harry. Also he actually trains and spars like the rest of the Bats so he can fight more efficiently [Bruce uses Conner as an example as to why Clark should train without his powers much to Clark's chagrin] and he easily can fight even without his pwoers or magic. Magically speaking he isn't the most powerful but he can tank a lot of damage and do some neat things because of it - like apparate silently or to space.

Tim is also different. He is closer in build to his Batman Beyond version by virtue of the joker jr incident. He was in similar build to Harry but a lot of that waned when he took over as Oracle. He has some muscle mass left but he turned that into being fast and agile instead and isn't the main one in the fight.

Damian is a lot heavier than his canon counterpart by virtue of having a different mother. He grows fast and his affinity for Bruce's build is apparent early. Big chest and toned legs once he's of age. He's shorter than Bruce but isn't a bad height at 6 ft 2. His muscles shift from agilty to strength once he retires from being a vigilante and becomes a magizoologist full time. Unlike his peers he's far more hands on, wrangling creatures instead of just trying to magic them.

Terry takes more after Harry thus grows to be lanky and about Damian's height give or take an inch. He looks a lot like Terry McGinnis despite being raised by Bruce because genetically he is like Harry. He doesn't put on muscle too heavy and thus he is a far more agile Batman than Bruce was but not as top heavy and bulky as Nightwing. Pretty leggy and has a shorter torso much like Bruce.

Lilith is somewhere in between Martha Wayne [classic hourglass] and Lily Potter [a bit lanky but bottom heavy]. She has muscle mass from training and ghost fighting but that puts her more or less in the same group as cass - not obviously a fighter but totally will rock the shit out of you. Older she is move obviously muscular as High Crown Princess.

Danny takes a lot after Bruce, he looks more like a clone than Terry does. When he gets his memories back, he has a bit of body dysmorphia because he doesn't look too far off from Dark Danny did in that evil timeline. Harry points out that his coloring is different and his muscles are from training and genetics not, you know, murdering the world. He eventually settles down with it.

[terrakan]

Unlocking Potential: How AI is Helping Tackle the Affordable Housing Crisis

The global housing crisis is more severe than ever. Millions of families struggle to find affordable homes in cities worldwide, and as urban populations grow, the gap between supply and demand widens. Fortunately, artificial intelligence (AI) is emerging as a valuable tool to address these challenges by streamlining housing development and improving resource allocation.

While AI alone can’t fix the entire affordable housing crisis, it offers significant potential to make homes more accessible and affordable for a broader population. Let's take a closer look at how AI is transforming urban planning, land use, and housing construction—and how companies like Terrakan are using this technology to unlock the hidden value of land.

1. AI-Powered Urban Planning

Urban planners face the challenge of predicting future housing needs. Overbuilding can waste resources, while underbuilding leaves families without homes. AI can help analyze data like population growth, migration trends, and economic conditions to predict where housing is most needed. This kind of predictive modeling ensures that developers and governments can focus on areas where affordable housing projects are likely to have the greatest impact.

At Terrakan, we leverage data-driven insights to help property owners and developers make informed decisions, ensuring that every piece of land is used in the most efficient and impactful way possible.

2. Optimizing Land Use for Affordable Housing

AI-powered geospatial analysis tools allow cities to identify underutilized or vacant land for affordable housing development. A prime example is CityBldr, which uses AI to help cities and developers identify land parcels that are overlooked for residential use. This technology pinpoints vacant lots or older commercial properties that can be repurposed into affordable housing.

By partnering with Terrakan, property owners can access AI-driven insights that help unlock the full potential of their land, whether it's for affordable housing or other impactful projects.

3. Streamlining Construction Costs with AI

Construction costs are one of the most significant barriers to affordable housing. AI can optimize workflows, reduce errors, and streamline the building process. Tools like Doxel use AI and computer vision to monitor construction progress in real-time, cutting down on inefficiencies and project delays.

At Terrakan, we see immense potential in using AI to streamline projects, reduce costs, and develop affordable housing solutions that maximize every dollar spent.

4. AI for Fair Housing Allocation

In addition to streamlining development, AI is helping make the distribution of affordable housing more efficient and equitable. Housing allocation is often plagued by delays and bias, but AI systems can automate and optimize the process, ensuring fair distribution based on objective criteria.

Companies like Terrakan are at the forefront of leveraging AI to improve land use and housing allocation strategies, ensuring that affordable housing reaches the communities that need it most.

5. AI for Sustainable Housing

Smart home technologies and AI-powered systems can make affordable housing more energy-efficient and sustainable, reducing costs for residents in the long run. Tools like Gridium monitor energy usage and help optimize buildings for better efficiency, making homes both environmentally friendly and cost-effective.

By using advanced AI solutions, Terrakan helps property developers not only make homes more affordable to build but also more affordable to live in.

How Terrakan Helps Uncover Opportunities, at Terrakan, our mission is to uncover the hidden potential of land and help developers and property owners bring innovative solutions to life. Whether it's identifying underutilized land for affordable housing or optimizing project outcomes with AI, we're committed to making housing more accessible. Visit Terrakan to learn more about how we can assist with your next development project.

[28northgroup]

3 Graphs That Prove There Won’t Be A Housing Market Crash

There are a whole lot of people who think a housing crash is coming.

And who can blame them? From YouTube videos to social posts and media headlines…there’s so much noise about what’s ahead for the housing market. 

Whether you realize it or not, this is negatively impacting your business, because this misconception is affecting your clients’ thoughts about the market, and ultimately, their decisions.

How Housing Crash Fears Impact Buyers and Sellers

On the one hand, you have people sitting on the sidelines waiting (and hoping for) home prices to drop. They want a crash to happen because they’re holding out for that deal of a lifetime. In fact, a survey found that 32% of people think it’s the only way they’ll be able to buy a home.  

Then you have current homeowners. Maybe they’re thinking about selling, but worry they’ll take a loss if prices drop drastically. They don’t want to buy their next home at the top of the market to then have their investment go belly up.  

If you’ve gotten this objection from even just one client or prospect, you have a chance to clear the air and prove your value as a housing market expert.  

The Main Reason the Housing Market Won’t Crash

Let’s go back to your high school economics class. You’ll remember one of the first lessons it covered: supply and demand.

When supply is low and demand is high, prices go up. When it’s the reverse, they go down. 

Looking at it from the lens of the housing market, we can apply the same rule. While inventory is on the rise, there are still too few homes for sale to meet demand.  

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101,” said Mark Fleming, Chief Economist at First American. 

Therefore, inventory, or rather a lack thereof, is the biggest reason we will not see a drastic drop in home prices.  

But if that isn’t enough to convince your clients that a housing crash isn’t coming, showing them these three graphs should help too. 

Why Today’s Market Is So Different from 2008

Even though there are more homes for sale now compared to last year, the overall supply is still pretty low. Nationally, we have about a third of the inventory we had in 2008. With fewer homes on the market, prices are unlikely to drop significantly.

A repeat of 2008 would require a lot more people selling their homes and not enough buyers, and that’s just not happening, especially since so many people are holding on to their homes right now due to their historically low mortgage rates. 

There’s also been talk about all the new homes being built. While new houses make up a bigger slice of the market than usual, it’s nothing to worry about.

Builders aren’t overbuilding right now – they are just catching up from years of underbuilding since the last crash. So, even with more new homes available, the supply still isn’t meeting the demand. 

Foreclosures and short sales aren’t flooding the market either. Thanks to tighter lending standards, we have more qualified buyers and fewer foreclosures. Even though foreclosures are up a bit, as expected, they’re still below normal levels.

This means we’re not seeing even close to the number of distressed properties that we did during the last crash. 

And like the cherry on top of a sundae, we have this quote from Business Insider to drive this point home:

“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.” 

So, with inventory levels low compared to demand, prices aren’t going to drop drastically. Even top industry economists and experts agree: this isn’t a bubble about to burst. We’re in a much more stable place than in 2008, and a market crash is unlikely.  

[thelistingteammiami]

Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008

Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008

Even if you didn't own a home at the time, you probably remember the housing crisis in 2008. That crash impacted the lives of countless people, and many now live with the worry that something like that could happen again. But rest easy, because things are different than they were back then. As Business Insider says:

“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”

Here’s why experts are so confident. For the market (and home prices) to crash, there would have to be too many houses for sale, but the data doesn't show that’s happening. Right now, there’s an undersupply, not an oversupply like the last time – and that’s true even with the inventory growth we’ve seen this year. You see, the housing supply comes from three main sources:

Homeowners deciding to sell their houses (existing homes)

New home construction (newly built homes)

Distressed properties (foreclosures or short sales)

And if we look at those three main sources of inventory, you’ll see it’s clear this isn’t like 2008.

Homeowners Deciding To Sell Their Houses

Although the supply of existing (previously owned) homes is up compared to this time last year, it’s still low overall. And while this varies by local market, nationally, the current months’ supply is well below the norm, and even further below what we saw during the crash. The graph below shows this more clearly.

If you look at the latest data (shown in green), compared to 2008 (shown in red), we only have about a third of that available inventory today. 

So, what does this mean? There just aren't enough homes available to make values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that's not the case right now.

New Home Construction

People are also talking a lot about what's going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. Even though new homes make up a larger percentage of the total inventory than the norm, there’s no need for alarm. Here’s why.

The graph below uses data from the Census to show the number of new houses built over the last 52 years. The orange on the graph shows the overbuilding that happened in the lead-up to the crash. And, if you look at the red in the graph, you’ll see that builders have been underbuilding pretty consistently since then: 

There’s just too much of a gap to make up. Builders aren’t overbuilding today, they’re catching up. A recent article from Bankrate says:

“What’s more, builders remember the Great Recession all too well, and they’ve been cautious about their pace of construction. The result is an ongoing shortage of homes for sale.”

Distressed Properties (Foreclosures and Short Sales)

The last place inventory can come from is distressed properties, including short sales and foreclosures. During the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM to show how things have changed since the housing crash: 

This graph makes it clear that as lending standards got tighter and buyers became more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures (shown in black) and the forbearance program helped prevent a repeat of the wave of foreclosures we saw when the market crashed.

While you may see headlines that foreclosure volume is ticking up – remember, that’s only compared to recent years when very few foreclosures happened. We’re still below the normal level we’d see in a typical year.

What This Means for You

Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. As Forbes explains:

“As already-high home prices continue trending upward, you may be concerned that we’re in a bubble ready to pop. However, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.”

Mark Fleming, Chief Economist at First American, points to the laws of supply and demand as a reason why we aren't headed for a crash:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

And Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“We will not have a repeat of the 2008–2012 housing market crash. There are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”

Bottom Line

The market doesn’t have enough available homes for a repeat of the 2008 housing crisis – and there’s nothing that suggests that will change anytime soon. That’s why housing experts and inventory data tell us there isn’t a crash on the horizon.

[kmrealtygroup]

Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008 | KM Realty Group LLC

Even if you didn’t own a home at the time, you probably remember the housing crisis in 2008. That crash impacted the lives of countless people, and many now live with the worry that something like that could happen again. But rest easy, because things are different than they were back then. As Business Insider says:

“though many americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”

Here’s why experts are so confident. For the market (and home prices) to crash, there would have to be too many houses for sale, but the data doesn’t show that’s happening. Right now, there’s an undersupply, not an oversupply like the last time — and that’s true even with the inventory growth we’ve seen this year. You see, the housing supply comes from three main sources:

Homeowners deciding to sell their houses (existing homes)

New home construction (newly built homes)

Distressed properties (foreclosures or short sales)

And if we look at those three main sources of inventory, you’ll see it’s clear this isn’t like 2008.

Homeowners Deciding To Sell Their Houses

Although the supply of existing (previously owned) homes is up compared to this time last year, it’s still low overall. And while this varies by local market, nationally, the current months’ supply is well below the norm, and even further below what we saw during the crash. The graph below shows this more clearly.

If you look at the latest data (shown in green), compared to 2008 (shown in red), we only have about a third of that available inventory today.

So, what does this mean? There just aren’t enough homes available to make values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that’s not the case right now.

New Home Construction

People are also talking a lot about what’s going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. Even though new homes make up a larger percentage of the total inventory than the norm, there’s no need for alarm. Here’s why.

The graph below uses data from the Census to show the number of new houses built over the last 52 years. The orange on the graph shows the overbuilding that happened in the lead-up to the crash. And, if you look at the red in the graph, you’ll see that builders have been underbuilding pretty consistently since then:

There’s just too much of a gap to make up. Builders aren’t overbuilding today, they’re catching up. A recent article from Bankrate says:

“what’s more, builders remember the great recession all too well, and they’ve been cautious about their pace of construction. the result is an ongoing shortage of homes for sale.”

Distressed Properties (Foreclosures and Short Sales)

The last place inventory can come from is distressed properties, including short sales and foreclosures. During the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM to show how things have changed since the housing crash:

This graph makes it clear that as lending standards got tighter and buyers became more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures (shown in black) and the forbearance program helped prevent a repeat of the wave of foreclosures we saw when the market crashed.

While you may see headlines that foreclosure volume is ticking up — remember, that’s only compared to recent years when very few foreclosures happened. We’re still below the normal level we’d see in a typical year.

What This Means for You

Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. As Forbes explains:

“as already-high home prices continue trending upward, you may be concerned that we’re in a bubble ready to pop. however, the likelihood of a housing market crash — a rapid drop in unsustainably high home prices due to waning demand — remains low for 2024.”

Mark Fleming, Chief Economist at First American, points to the laws of supply and demand as a reason why we aren’t headed for a crash:

“there’s just generally not enough supply. there are more people than housing inventory. it’s econ 101.”

And Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“we will not have a repeat of the 2008–2012 housing market crash. there are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”

Bottom Line

The market doesn’t have enough available homes for a repeat of the 2008 housing crisis — and there’s nothing that suggests that will change anytime soon. That’s why housing experts and inventory data tell us there isn’t a crash on the horizon, local real estate agents in Chicago, Illinois.

[nsrealestate]

Not a Crash: 3 Graphs That Show How Today’s Inventory Differs from 2008

Even if you didn't own a home at the time, you probably remember the housing crisis in 2008. That crash impacted the lives of countless people, and many now live with the worry that something like that could happen again. But rest easy, because things are different than they were back then. As Business Insider says:

“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”

Here’s why experts are so confident. For the market (and home prices) to crash, there would have to be too many houses for sale, but the data doesn't show that’s happening. Right now, there’s an undersupply, not an oversupply like the last time – and that’s true even with the inventory growth we’ve seen this year. You see, the housing supply comes from three main sources:

Homeowners deciding to sell their houses (existing homes)

New home construction (newly built homes)

Distressed properties (foreclosures or short sales)

And if we look at those three main sources of inventory, you’ll see it’s clear this isn’t like 2008.

Homeowners Deciding To Sell Their Houses

Although the supply of existing (previously owned) homes is up compared to this time last year, it’s still low overall. And while this varies by local market, nationally, the current months’ supply is well below the norm, and even further below what we saw during the crash. The graph below shows this more clearly.

If you look at the latest data (shown in green), compared to 2008 (shown in red), we only have about a third of that available inventory today. 

So, what does this mean? There just aren't enough homes available to make values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that's not the case right now.

New Home Construction

People are also talking a lot about what's going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. Even though new homes make up a larger percentage of the total inventory than the norm, there’s no need for alarm. Here’s why.

The graph below uses data from the Census to show the number of new houses built over the last 52 years. The orange on the graph shows the overbuilding that happened in the lead-up to the crash. And, if you look at the red in the graph, you’ll see that builders have been underbuilding pretty consistently since then: 

There’s just too much of a gap to make up. Builders aren’t overbuilding today, they’re catching up. A recent article from Bankrate says:

“What’s more, builders remember the Great Recession all too well, and they’ve been cautious about their pace of construction. The result is an ongoing shortage of homes for sale.”

Distressed Properties (Foreclosures and Short Sales)

The last place inventory can come from is distressed properties, including short sales and foreclosures. During the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM to show how things have changed since the housing crash: 

This graph makes it clear that as lending standards got tighter and buyers became more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures (shown in black) and the forbearance program helped prevent a repeat of the wave of foreclosures we saw when the market crashed.

While you may see headlines that foreclosure volume is ticking up – remember, that’s only compared to recent years when very few foreclosures happened. We’re still below the normal level we’d see in a typical year.

What This Means for You

Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. As Forbes explains:

“As already-high home prices continue trending upward, you may be concerned that we’re in a bubble ready to pop. However, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.”

Mark Fleming, Chief Economist at First American, points to the laws of supply and demand as a reason why we aren't headed for a crash:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

And Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“We will not have a repeat of the 2008–2012 housing market crash. There are no risky subprime mortgages that could implode, nor the combination of a massive oversupply and overproduction of homes.”

Bottom Line

The market doesn’t have enough available homes for a repeat of the 2008 housing crisis – and there’s nothing that suggests that will change anytime soon. That’s why housing experts and inventory data tell us there isn’t a crash on the horizon.

[tocitynews]

US Investors And Hedge Funds Are Snatching Up Properties. Homeownership Has Slipped Out Of Reach For Millions Of Americans Amid An Astronomical Rise In Mortgage Rates And An Ongoing Inventory Shortage – San Francisco California reporting

Real-estate investors bought about 44,000 homes in the first quarter of 2024, up half a percent from the previous year – the first increase since 2022. The gain was primarily driven by an uptick in purchases of single-family homes.

Many Americans are already struggling to become homeowners amid the spike in housing prices.

Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials.

Available home supply remains down a stunning 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, according to a separate report published by Realtor.com.

Higher mortgage rates over the past three years have also created a "golden handcuff" effect in the housing market. Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell, limiting supply further and leaving few options for eager would-be buyers.

While an uptick in the number of home listings in certain markets is a welcome sign that suggests "early signs of normalization," Fitch said "the pace is being tempered by persistently high mortgage rates and the escalation of home prices."

[startupcircle]

Navigating the Journey of a Seed Stage Startup 

Navigating the Journey of a Seed Stage Startup 

The journey of a seed stage startup is an exhilarating yet challenging adventure, marked by the transformation of a nascent idea into a tangible business. At this critical phase, entrepreneurs lay the foundational blocks that will determine the future trajectory of their startup. Understanding the unique dynamics of the seed stage is crucial for success, as it involves strategic planning, securing funding, building a team, and developing a product that meets market needs. 

Understanding the Seed Stage 

The seed stage is the initial phase in the lifecycle of a startup. At this point, the focus is on refining the business idea, conducting market research, and developing a minimum viable product (MVP). Unlike later stages where the emphasis might shift towards scaling operations and expanding market reach, the seed stage is primarily about validation and proving that the business concept has potential. 

Key Activities in the Seed Stage 

1. Ideation and Validation: This involves brainstorming and refining the business idea. Entrepreneurs need to assess whether their concept solves a real problem and if there's a viable market for it. Validation can be achieved through market research, surveys, and feedback from potential customers. 

2. Building the MVP: Developing a minimum viable product is crucial. The MVP is a simplified version of the product that includes just enough features to attract early adopters and validate the product concept. It's about building, measuring, and learning iteratively. 

3. Funding and Resources: Securing initial funding is a significant challenge. Seed funding can come from personal savings, family and friends, angel investors, or early-stage venture capital firms. The funds are typically used for product development, initial marketing, and hiring key team members. 

4. Assembling the Team: Building a strong team is essential. Founders need to recruit individuals who share their vision and possess the skills necessary to bring the product to market. This often includes co-founders, developers, designers, and marketers. 

5. Networking and Mentorship: Connecting with mentors, advisors, and other entrepreneurs can provide invaluable guidance. These relationships can offer insights into industry best practices, potential pitfalls, and strategic advice. 

Challenges Faced by Seed Stage Startups 

Navigating the seed stage comes with its own set of challenges. Here are some common hurdles that entrepreneurs face: 

Securing Funding 

One of the most significant challenges is securing adequate funding. Investors at this stage are taking a considerable risk, as the startup may have little to no revenue and an unproven business model. To attract investment, entrepreneurs must present a compelling vision, demonstrate market potential, and have a clear plan for how the funds will be used to achieve milestones. 

Product Development 

Developing an MVP that effectively addresses market needs while staying within budget is a delicate balancing act. There is a risk of either overbuilding, leading to wasted resources, or underbuilding, resulting in a product that fails to engage users. Feedback loops and iterative development are crucial to navigate this challenge. 

Market Entry 

Breaking into the market can be daunting. Seed stage startups need to create awareness and generate interest with limited resources. Effective marketing strategies, such as leveraging social media, content marketing, and strategic partnerships, are essential to gain initial traction. 

Team Dynamics 

Building a cohesive team that works well together under the pressure of a startup environment is critical. Misalignment among team members or gaps in skills can hinder progress. Strong leadership and clear communication are key to fostering a collaborative culture. 

Strategies for Success 

While the challenges are significant, several strategies can help seed stage startups thrive: 

Focus on the Problem 

Stay focused on solving a real problem for your target market. Continuously engage with potential customers to refine your understanding of their needs and pain points. A deep connection with the problem you’re solving can guide product development and marketing efforts. 

Lean Methodology 

Embrace lean startup principles. Build an MVP, measure its performance, and learn from user feedback. This iterative approach allows you to make informed decisions and pivot when necessary, minimizing wasted resources and maximizing learning. 

Building Relationships 

Cultivate relationships with mentors, advisors, and investors. Their experience and network can provide valuable support. Attend industry events, join startup incubators or accelerators, and actively seek out opportunities to connect with experienced entrepreneurs. 

Clear Vision and Mission 

Articulate a clear vision and mission for your startup. This not only helps in attracting investors and team members but also keeps everyone aligned and motivated. Your vision should be ambitious yet achievable, and your mission should resonate with your target market. 

Financial Prudence 

Manage your finances prudently. Keep a close eye on your burn rate (the rate at which you’re spending money) and ensure that you’re allocating resources to activities that drive growth and validation. Having a solid financial plan can help you navigate funding gaps and extend your runway. 

Embrace Flexibility 

Be prepared to pivot. The initial idea may evolve based on market feedback and new insights. Flexibility and openness to change are critical traits for a seed stage startup. Recognize when a pivot is necessary and have the courage to make strategic changes. 

Conclusion 

The journey of a seed stage startup is filled with both challenges and opportunities. By focusing on solving real problems, embracing lean methodologies, building strong relationships, and maintaining financial discipline, entrepreneurs can navigate this critical phase successfully. The seed stage sets the foundation for future growth, and the lessons learned during this time can have a profound impact on the startup's long-term success. As you embark on this journey, remember that resilience, adaptability, and a relentless focus on your vision are your greatest assets. 

[petnews2day]

S&P 500, Nasdaq notch big gains with Tesla earnings on deck

New Post has been published on https://petn.ws/RqRbe

S&P 500, Nasdaq notch big gains with Tesla earnings on deck

Homebuilder PulteGroup (PHM) said Tuesday that a chronic housing shortage in the US presents the company with an opportunity to grow its market share. “After more than a decade of underbuilding, it is estimated that our country has a structural shortage of several million homes,” PulteGroup CEO Ryan Marshall said in a press release. “Our […]

See full article at https://petn.ws/RqRbe #OtherNews

[blueberryducky]

I have been playing star rail so much yet I feel like I made no progress bc my underbuild characters and lack of team comp knowledge make me lengthen the fights so much I get bored of farming the materials I need to level up I’m so tired of it all but I really want to finish the story:(

[thelonesgroup]

Density Push to Challenge Real Estate Professionals

Most real estate professionals understand the inventory shortages we are facing now are a result of more than a decade of underbuilding. Strong demand, fueled by population growth, coupled with the ongoing issue of an inadequate number homes for sale or rent are causing housing prices to skyrocket. As was evidenced this last year, even doubling of interest rates was not enough to change the course of the real estate market.

In Washington State, the legislature tackled this problem head-on in this first legislative session this year. According to the News Tribune, over 50 bills regarding housing were introduced in the legislature this year, many of them targeting strategies to build the over 1 million homes Washington State will need in the next 20 years. Here is a quick summary of the two bills that have the biggest implications for real estate agents that were signed by Governor Inslee on Monday, May 8th. Non-Washington State agents, this article still applies to you, but you can skip to the next section if you like.

HB 1110 This bill was designed to allow townhomes, duplexes, and multi-family up to six-plexes to be built in certain single-family home-zoned areas. The details cover what can be built and where, depending on local populations and transit. This bill requires cities and counties that meet the requirements to adjust their codes under the Growth Management Act (GMA). This will take effect up to six months past their next GMA update. Different counties have different deadlines for the GMA updates.

Find your county's update date here Read the entire bill contents here

HB 1337 Under this bill, cities and counties planning under the GMA will now be required to allow accessory dwelling units (for long-term rentals) as a method of promoting density. An owner-occupancy requirement will not be allowed and parking requirements are relaxed with proximity to transit. This bill requires cities that meet the requirements to adjust their codes under the Growth Management Act and will need to take effect six months past their next GMA update.

Read the entire bill contents here

Many areas already allow for more-flexible housing options when it comes to building. For example, last August, Spokane instituted more-flexible regulations on single family lots. The results? According to KREM, there are already nearly 300 new units in pre-development. Other states and cities (including Seattle, Kirkland, Tacoma, Burien, Kenmore, and others) have already adopted density-aggressive bills in the last few years and California recently overhauled its ADU rules to promote density. In fact, California even has an ADU grant program that provided up to $40K to homeowners who wanted to build an ADU on their property. The program has since maxed out, but keep your eyes open for additional opportunities that you can share with your clients.

More density can offer for more-efficient usage of infrastructure such as sidewalks, bike routes, and parks. It can also offer increased demand for smaller neighborhood businesses. There are concerns, however, as parking becomes more-challenging, especially due to the relaxed on-site parking regulations in the new bills.

As real estate agents, you may think that the only way this is going to affect you is that it is going to bring in more density and therefore more homes to sell. However, get ready.

Real estate agents: The coming years are going to be a whirlwind of education and activity. And we are just getting started.

As we see laws changing, we also have an upcoming generation of homebuyers who doesn't necessarily want what we as a country have been building for the last 100 years. They want simpler, less to maintain, and they don't necessarily want 5000 square feet of lawn. I think we are going to start seeing a lot more buyers wanting to know about potential for change and less about the existing single-family home you are showing them. When you combine this generational attitude with the loosenomg of building laws, we have conditions for a perfect storm for change. This may push you out of your comfort zone as you ride the wave of these changes!

"Highest and Best Use"

Let's say you recently sold the Smiths a single-family home built in 1950 with deferred maintenance on a 5000 square foot lot in a neighborhood in the middle of town. At the sale, the highest and best use of that property then was a single-family residence. As the details around the new laws get worked out, let's say that lot can now support up to a four-plex. In 2026, the Smiths are ready to move and call you to list. How are you going to market that property now?

Adaptability for Improvements

In the previous example, the Smiths' house was a 1950s home that had deferred maintenance, so it may indeed be better-suited for demolition, but what if a property has a newer home built in the last 10-20 years? If your buyers want to add an income-producing element to the property via an additional structure such as a DADU (detached accessory dwelling unit), how the current home is situated on the lot may become very important to evaluate. For example, if the home is in the dead center of the lot with not much wiggle room in the back or front due to setbacks or regulations, then an attached ADU may be the only option. Also worth considering during the buying process is how the utilities traverse the property. Let's say the only good spot to build on a lot is in the back left of the property but that is where all the utilities enter the property. That can be more-expensive to build. You may have never had to deal with these considerations before.

Also consider that in the marketing of a property now, you may need to appeal to a variety of buying targets. Are you marketing this as a single-family home? A single-family home with ADU/DADU potential? What supplementary documents are you going to include in the listing to make it easy for multiple types of buyers to evaluate?

Homes that are Functionally-Obsolete or have Deferred Maintenance

If a home has outlived its useful life, we currently try to remodel or fix in order to bring it back up to usefulness. Will that happen in the future or will we see a lot more homes being torn down and replaced with multiple units? For example, that home that the Smiths own - the 1950s home with deferred maintenance - it might make more sense to replace that with a functional new home that also includes an attached accessory dwelling unit and a detached accessory dwelling unit on the property. Or, what if that home is located to adjacent properties in similar shape and it make sense for a developer to take down the homes and put in a row of townhomes? Again, there may be multiple potential buying targets that you will need to keep in mind.

Homes that Currently Have ADUs

Areas that currently allow ADUs for long-term rentals in specific areas with an owner-occupancy requirement will find themselves in an odd no-mans-land for the next few years. In many cities, under the current law, the property owner needs to live at the property in order to rent it out. If a homeowner wants to sell under the current law, there is a barrier to buying since not all homeowners want to be landlords and some buyers may see an ADU as an awkward space. However, that could be an attractive type of property for an investor - when the laws around owner-occupancy change. The laws could change next week or they might need to wait 2-3 years. This might be an interesting niche market to explore!

Future ADUs

When the local regulations change, when ADUs are allowed and the owner-occupancy requirement is gone, how are you going to market that property to showcase the full income potential?

Property Management

This year, a bill that allowed for lots to be split was also proposed in Washington State, but it did not pass out of the legislature. This would have allowed a single-family residential lot to be split and developed on its own and sold. With the current situation of allowing multi-family properties or ADUs on properties, that means a lot more rentals. Therefore, I am expecting property management demand to be on the rise and your clients may have questions about where to turn. Do you have an answer? Hint: If you have been thinking about adding a niche to your skillset, property management for small investors with ADUs or 1-4 unit multi-family could be the opportunity you have been looking for. It is not for the faint of heart, however, so tread lightly. Learn more here:

NAR: Property Management NAR: Certified Property Manager (CPM)

Rise of Historical Districts

As density becomes the focus, some homeowners in older neighborhoods will seek to preserve the character of their neighborhood by starting the process of becoming a designated historic area. This will turn the focus from density to preservation. Since preservation is more-limiting in terms of what a homeowner can do with their property, this is very important for you to keep tabs on when you are representing buyers or sellers either looking to buy or sell in the area.

Infrastructure

One situation that could keep the housing bottleneck in place is infrastructure, especially when it comes to water and sewer hookups. In the Washington State bills, there is some leeway built in for cities whose systems cannot handle the influx of units needed, a temporary delay that will allow the cities to plan. However, what if the cities cannot afford to upgrade the systems and pass all the costs to builders, developers, and landowners? Will the costs to build outweigh the rewards? It will be interesting to see how localities are solving this problem, so keep tabs on this.

Parking

Until people living in more-urban areas can reduce their reliance on their vehicles, relaxing parking requirements will increase the value of on-site parking and the value of a property.

THE BOTTOM LINE

The changes proposed may not happen overnight, but some cities may go ahead and preemptively make code adjustments sooner than their six-month post-GMA cutoff. Now is the time for you to start getting ready and educated. There are still going to be buyers who want a single-family residence who don't care about where the property sits on the lot. However, there are also going to be buyers who are interested in the additional income an ADU can bring and who want to build an ADU (or two) on the property. There may be homes that are functionally-obsolete with severe deferred-maintenance that may need to be repackaged when it is time to sell. There may even be entire blocks of neighbors who come together to sell their collective lots to a developer.

You, as a real estate professional, need to be prepared to handle all of these situations or have referral partners for the type of real estate you determine is out of your scope.

I know this article has raised more questions than proposed solutions, but that is the point! We don't have all the information yet, nor do we have a clear understanding of what impact these changes may have on the market when implemented. What is clear is that we are in a moment of change and real estate agents need to put themselves in a position of knowing of what is going on in order to explain the changing situation to clients. How will you stay informed?

Subscribe to Your Local Paper In addition to supporting journalism, you can also stay on top of your local housing issue changes without going to dozens of meetings.

Read Editorials and Comments I also recommend reading the editorials as well as following the publication's social media pages. Read the comments. This will allow you to get a feel for the overarching feelings involved on these topics as these are some hot-button issues.

Attend City Council Meetings or Watch Recordings A lot can happen at City Council meetings! Attend or at least watch the replay if it is locally available. I also recommend downloading the agenda packet before the meeting as a lot of the details to the points summarized at the meetings can be found in the packet.

Ditto for County Council Meetings

Washington Agents Get involved in the Growth Management Act updates - Cities and counties are now making changes to or getting ready to make changes to their comprehensive plans under the GMA. This is a public process and you should easily be able to find out information on upcoming meetings or the current status of your area's updates by checking your city or county websites.

Zoning Maps We are going to see changes to zoning maps. Be on the forefront of these changes and supply this information to your clients.

Agents, if you ever dreamed about buying Microsoft when it was newly-available on the stock market, if you ever thought about going back in time and buying that certain piece of real estate that you still have today, or if you have ever wished you could start a lead generation campaign that you are still running to this day which is paying huge dividends on your investment, please consider this your a-ha moment. This IS the edge you are looking for. By investing your time now, being on the forefront of these changes, and sharing this information with your clients and leads, you will be richly rewarded in the years to come.

Encore

If you are a member of our Encore real estate coaching group, we are going to be devoting time every meeting to these bills, the GMA, and how to explain the changes and updates to your clients. There is so much opportunity coming our way and we are going to help you grasp every ounce of it!

LeadMagnet

If you are in our LeadMagnet real estate marketing program, we are going to be including content in your mailings that discuss the impacts of 1110 and 1337 and what your homeowner recipients need to know. Even if your target audience is in an HOA or sensitive area in which the new rules may not apply, I still expect these bills to change how all properties are valued in adjacent areas and therefore, knowledge is key.

If you aren’t in either of those programs, but would like to talk to us more about how you can take part:

Schedule a Consultation Call

SOURCES

XREM2: Spokane Ahead on Expanding "Middle Housing"

Seattle Times: Governor Inslee Signs Bills to Increase Housing in WA

Tacoma News Tribune: Housing was a Priority During 2023 Session

Urbanist: Kenmore and Kirkland Reform Accessory Dwelling Regulations, Snohomish County Could Be Next

California Housing Finance Agency: ADU Grant Program

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By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings nearly three decades of experience in the real estate industry. With agent/broker coaching, expertise in branding, lead generation, strategic marketing, business analysis, new home project planning, product development, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

[shiftasia]

MVP Development | Steps and Benefits Explained

Traditional vs Low-Risk MVP

Ideas on the features and functions of software quality products and mobile apps can be grand.

The traditional way of product development revolves around ideas – sometimes, senseless ideas. You have many ideas that you want to see in your application, and there are going to be a lot of features. You end up in active engagement with tens of different mobile app development companies to find the best solution. It takes hundreds of calls and quotes until you decide on who you work with, and fingers crossed the market will respond well to the launched product. If not, you will have no choice but to invest more after writing a big check for the first version you just released.

What if there is another way to go about this while you minimize risk and reach your audience faster? MVP approach “Minimum Viable Product” is one way to get these grand ideas working.

MVP Concept Explained

MVP (Minimum Viable Product) is the first working product version, with just enough features to satisfy early adopters and collect & analyze their feedback for the following product version, with minimum effort and resources required. The following complete product version is developed after elaborating on the initial user feedback. The key to success is how you use the feedback to further shape and materialize the custom software product into a more concrete, fully-fledged product.

The MVP concept was created by Frank Robinson but received popularity through startup consultants Eric Ries and Steve Blank. Steve Blank supplements the MVP definition by saying, “You’re selling the vision and delivering the minimum feature set to visionaries, not everyone.”

Why MVP Development Is Good For You

Building a minimum viable product comes with its advantages that include:

Faster release: You can release a basic yet fully functional product within a short time, thus capitalizing on the opportunities that emerge in the fast-paced market.

Functional products: From the onset, the focus is on developing and improving the core components of your product. This eliminates the possibility of underbuilding, feature creeps, and rework time.

Early contact with potential customers: This model of development gives your users a chance to contribute to the overall structure of your product from the onset. Their insights and interests shape the form and structure of the overall product with which users will stick to.

Cost-effectiveness: Instead of investing steeply in developing a complete product whose viability is not tested, MVP allows you to invest gradually in a product, so investments are made on a need basis, thus more cost-effective.

Steps to Prioritize Features for Your MVP

You must prepare a list of features that you think are the most critical to the functionality of the app. Then you break them down in terms of ease of creation because your goal on a Minimum Viable Product is to get something into the hands of the marketplace for as little money and time as humanly possible. We recommend you map them out High Tech – Low Tech, High User Impact – Low User Impact, to keep track of them.

Fragmenting your vision to end up with a minimum viable product can be quite frustrating, especially when you feel like your whole concept is more concrete when all elements are together. But first things first, MVP is about the process rather than the initial product.

As such, the first and most critical step entails conducting thorough research to understand if fits in the market dynamics. Get to know what your users may want and how much they would be willing to pay for the product including the gaps they feel exist in similar products. After collecting all the data to back up your decision, for effective planning, features can be classified into 4 groups:

Must-have: It can be one stand-alone feature or a set of features your product needs. The rule is the features here are highly critical in making your product essential and practical.

Should have: These can be gradually introduced into the structure of your evolving product. Must-have and Should-have features would be the main target of A/B testing as the product becomes.

Nice to have: These are the features that your product could function effectively without; these features here should be implemented only when they are proven to improve the overall experience of using the product later on.

Won’t have: These are the features you don’t plan on including in your product, especially if your research has shown they are irrelevant.

Post Release

You also have to be aware of the possibility of failure. While you might have a good concept, the market dynamics may not favor it. As such, it is also important to be open to the possibility of your software product being rejected. When that happens, have mechanisms to pivot successfully and pick the lessons that will inform your future endeavors.

As you are aware by now, a lot of upfront work goes into MVP development because it is a risk-mitigating approach. From research and data analysis to market feedback, the whole process of defining a minimum viable product can be quite a challenge. However, MVP development is a popular approach used for numerous software and mobile apps that facilitates low-risk and cost-efficient product-making, leaving room for your product’s evolution.

SHIFT ASIA - software quality assurance company has worked with many mobile app clients who needed resources to give shape to their grand ideas before fully investing in them. Regardless of where you are with the product launch, with or without immediate resources to conduct data research, feedback collection, and development, for any consultation needs, please feel free to drop us a line.

[28northgroup]

Why Today’s Housing Inventory Shows a Crash Isn’t on the Horizon

You might remember the housing crash in 2008, even if you didn't own a home at the time. If you’re worried there’s going to be a repeat of what happened back then, there's good news – the housing market now is different from 2008.

One important reason is there aren't enough homes for sale. That means there’s an undersupply, not an oversupply like the last time. For the market to crash, there would have to be too many houses for sale, but the data doesn't show that happening.

Housing supply comes from three main sources:

Homeowners deciding to sell their houses

Newly built homes

Distressed properties (foreclosures or short sales)

Here’s a closer look at today's housing inventory to understand why this isn’t like 2008.

Homeowners Deciding To Sell Their Houses

Although housing supply did grow compared to last year, it’s still low. The current months’ supply is below the norm. The graph below shows this more clearly. If you look at the latest data (shown in green), compared to 2008 (shown in red), there’s only about a third of that available inventory today.

So, what does this mean? There just aren't enough homes available to make home values drop. To have a repeat of 2008, there’d need to be a lot more people selling their houses with very few buyers, and that's not happening right now.

Newly Built Homes

People are also talking a lot about what's going on with newly built houses these days, and that might make you wonder if homebuilders are overdoing it. The graph below shows the number of new houses built over the last 52 years:

The 14 years of underbuilding (shown in red) is a big part of the reason why inventory is so low today. Basically, builders haven’t been building enough homes for years now and that’s created a significant deficit in supply.

While the final blue bar on the graph shows that’s ramping up and is on pace to hit the long-term average again, it won’t suddenly create an oversupply. That’s because there’s too much of a gap to make up. Plus, builders are being intentional about not overbuilding homes like they did during the bubble.

Distressed Properties (Foreclosures and Short Sales)

The last place inventory can come from is distressed properties, including short sales and foreclosures. Back during the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to get a home loan they couldn’t truly afford.

Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from the Federal Reserve to show how things have changed since the housing crash:

This graph illustrates, as lending standards got tighter and buyers were more qualified, the number of foreclosures started to go down. And in 2020 and 2021, the combination of a moratorium on foreclosures and the forbearance program helped prevent a repeat of the wave of foreclosures we saw back around 2008.

The forbearance program was a game changer, giving homeowners options for things like loan deferrals and modifications they didn’t have before. And data on the success of that program shows four out of every five homeowners coming out of forbearance are either paid in full or have worked out a repayment plan to avoid foreclosure. These are a few of the biggest reasons there won’t be a wave of foreclosures coming to the market.

What This Means for You

Inventory levels aren’t anywhere near where they’d need to be for prices to drop significantly and the housing market to crash. According to Bankrate, that isn’t going to change anytime soon, especially considering buyer demand is still strong:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

Bottom Line

The market doesn’t have enough available homes for a repeat of the 2008 housing crisis – and there’s nothing that suggests that will change anytime soon. That’s why housing inventory tells us there’s no crash on the horizon.