JJ Development Co.  

News Letter

JJ Development is constantly reviewing building, and construction data for the Houston Metro-area so we will be able inform our clients and land owners of the Housing Industry movements with in this area. We will post a new newsletter on a bi weekly basis on the housing industry movement through out the entire Houston area.

Covid-19 Impact on Home Price

Last month’s HPI Forecast of a 6.6% home price decline through May 2021 has been revised as projected unemployment rates through 2020 showed improvement. The recent rebound of home sales suggests the pandemic did not derail home buyers, who continue to be motivated by historically low mortgage rates. This, coupled with the declining supply of homes for sale, could shield home price growth from the impacts of the current economic uncertainty. As a result, the latest HPI Forecast reports home prices will decline a moderate 1% between June 2020 and June 2021 with 33 states, including the District of Columbia, showing predicted decreases.

 

Please download Texas Economy Review Here

A Great Time to Be Delivering the American Dream

Steve Hilton, the CEO and founder of the 7th-largest home builder in country, flipped luxury home builder Meritage Homes upside down a few years ago, turning them into one of the largest entry-level spec builders in the country. That spec strategy (build the home before it is sold) has helped Meritage tremendously this year. They were priced right and didn’t get caught without ready-to-move-in homes to sell, as many other builders did.

Steve shares his thoughts with host Dean Wehrli on the cultural transition he went through, the ups and downs of 2020, and the strategic importance of Meritage’s pioneering investments in energy efficiency.

Like most, 2020’s boom, bust, and then bigger boom caught Steve off guard. However, he is now calling this the perfect storm for home builders. His customers are taking advantage of:

  • the lowest mortgage rates in history, which are very important to Meritage’s payment-focused buyers
  • a societal shift back toward more home buying in suburban locations, where there is more elbow room and where Meritage can build and sell more homes

Steve also discusses how his team has addressed the national lot shortage by developing their own lots. While land development is a riskier business than home building, Meritage handles that risk by paying down debt to the point where their balance sheet has never been stronger and purchasing the land in phases whenever possible.

Enjoy the words of wisdom from Steve Hilton and Dean Wehrli.

Don’t miss out on future episodes!

If you have any questions, please contact John Burns, CEO at (949) 870-1210 or by email.
John Burns
CEO
If you have any questions about our podcast, please contact Dean Wehrli, Principal at (916) 647-3263 or by email.
Dean Wehrli
Principal

JBREC COVID-19 Resources

We’ve added a resource page on our website with our latest releases and resources related to COVID-19, including our client-exclusive webinars, newsletters, and podcast episodes. We will continue to use real-time data, ongoing research, our in-house consulting expertise, and our network of clients and experts to do our best to provide a forward-looking summary of the changing housing market.

Recent Building Market Intelligence™

The Light: Market Opportunities

Despite the tremendous economic distress caused by COVID-19, our clients continue to find strong renter and home buyer demand for newly built homes across the country. In our latest release, we highlight the markets and real estate segments where we are consulting most frequently.

Read More

Hit the Gas, Tap the Brakes, and Change Direction

COVID-19’s massive impact on home life has sent clear signals that our clients are using to adjust their home sales, marketing, and designs. Here are 6 strategies we suggest, along with a 25-minute presentation Mikaela Sharp recently gave summarizing the consumer shifts and strategies.

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The Light: Remember the Healthy Amenities

So much of today’s dialogue about housing relates to making the home a place of comfort and safety. The same is true for the community. As we continue to assess master plans across the country, we’ve noted the amenities that promote outdoor health and wellness are the most used.

Read More

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