Broker Check

PCG's Annual Habitat for Humanity Build

| October 29, 2021
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“The greatness of a community is most accurately measured by the compassionate actions of its members.” – Coretta Scott King

             

It is no surprise that home sales have skyrocketed over the last year and a half. But what could be contributing to this sudden and shocking increase in price? Measured by the Case-Shiller Home Index, which is made up of several indexes that track the value of single-family detached homes, national home prices have increased from 7 to 19 percent, year-over-year, every month from September 2020 to June 2021. For current homeowners, this is a great thing – the value of current homeowners’ residences is considerably more valuable than ever before! But new potential home buyers’ purchasing power has greatly diminished due to price increases. As with shocks to any market, a combination of factors could be at play and the housing sector is no different. Below are a few reasons that may be contributing to home prices on the rise.

Movin’ Out - As many individuals and families have migrated from city living and rent paying in search of more space, notably in suburbs, existing homes supply has diminished. As “supply and demand” has forced its way into vernacular; it’s explicitly demonstrated here – the limited supply of existing homes for sale is driving competition and prices sky-high.

New Home Build Constraints - Because of the significant increase in demand for homes, home builders have attempted to step up their residential construction activity. Unfortunately, many home starts have been delayed, partly attributed to lack of skilled employees and rising input prices including lumber and other building materials. Cause and effect? You guessed correctly. Due to an increase in building material prices and elevated wages to entice skilled workers, coupled with the serious demand, new home prices are higher than ever before.

Cash is Still King – In this current housing market, cash buyers typically have the upper hand. In short, when a cash offer is accepted on a home, the buyer doesn’t carry a mortgage, and therefore, no appraisal is needed to assess the value of the newly purchased home. Because of this, not only is the new home valued at the new cash offer price (driving up prices on other homes in the same area that have not yet been sold), but any individual or family who cannot pay in cash, at full or above asking price, will usually lose the home in a negotiation.

Through Habitat for Humanity’s efforts to partner with people in your community, Habitat homeowners achieve the strength, stability, and independence they need to build a better life for themselves and for their families. In Habitat homes, families find better health, more financial freedom, and security.

All of us at Private Capital Group would like to thank you for your generous donations to our annual Habitat for Humanity Build-A-Thon. We are grateful to you for your contributions and, with your help, have raised $18,528.37 to help families in our community each fulfill a dream of owning a beautiful home. Last Friday, October 22, on site at a home build in Hartford, the PCG team worked to install insulated concrete forms (ICFs) and rig up scaffolding. We enjoyed the opportunity to roll up our sleeves, get our hands dirty, and learn more about the history of Habitat for Humanity, as well as see the efforts of our work come to life.

Private Capital Group is fortunate to partner with an incredible organization like Habitat for Humanity and we look forward to continuing to contribute to Habitat’s mission for years to come.

We hope that you and your loved ones are safe and healthy, enjoying a beautiful fall and we look forward to speaking with you soon!

 

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