New data from the National Association of Realtors (NAR) shows more proof that the manufactured housing industry stands at the cusp of significant opportunity.

According to HousingWire, existing homes stayed on the market for less time in April than in any month since 2011, but tight inventory drove a decline in existing home sales over March’s record pace.

 

“Demand from buyers is still far exceeding the available supply, leading to both the decline in existing home sales and the fact that homes are flying off the market,” said Lawrence Yun, NAR’s chief economist.

The NAR report also shows that homes typically stayed on the market in April for a new record low of 29 days, down from 34 days in March and 39 days in April 2016.

April marks the first time since NAR tracking the time that a home stays on market that the time on market has been less than 30 days. Also of note, 52 percent of homes sold in the month of April were on the market for less than a month, a new high.

Total existing-home sales, which are classified as completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.3 percent to a seasonally adjusted annual rate of 5.57 million in April from a downwardly revised 5.7 million in March.

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market,” said Yun.

“Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase.”

Yun also shared that that the median existing-home price for all housing types in April was $244,800, up 6% percent from April 2016 ($230,900), and that every major region, minus the Midwest, saw a decline in existing sales.

“Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale,” said Yun.

“Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher.”

 

Door Wide Open for Manufactured Housing Industry

The challenges referenced by Yun show a site built housing market that is, by all accounts, upside down. Demand for affordable housing is outstripping supply, keeping those who would otherwise be able to realize the dream of home ownership from doing so.

“When the National Association of Realtors chief economist says there are more buyers than existing homes available on the market, that should be a huge signal to manufactured and modular home professionals,” said Stan Posey, sales manager at Sunshine Homes of Red Bay, AL.

“We build residential style homes that target the site-built customer,” Posey said. “Some of our retailers and communities are doing very well by targeting the site-built customer.”

“For example,” Posey said, “our award-winning retailer, Stan Dye at Star Homes in Cullman, AL told Inside MH recently that about 70% of their buyers first owned a conventional stick-built house.”

Regular MHLivingNews readers and viewers discover that when home shoppers give a good, careful look at today’s residential style manufactured and modular homes, many are saying ‘yes.’

With interest rates rising, and more cities considering or being urged to accept manufactured homes as infill, the manufactured home industry’s opportunities are rising.

This is particularly true with the ‘residential side’ of the industry: homes boasting finished tape and textured models, and other conventional-housing style amenities.

Stan Dye told the Inside MH Road Show that residential style homes have a stronger appeal to the site-built buyer, as opposed to the “shade and shelter” or entry-level manufactured housing – that may use vinyl over gypsum (VOG) or painted, but untextured drywall – along with less costly fixtures and finishes.

As the Daily Business News has covered, the Manufactured Housing Association for Regulatory Reform has made similar points, and is calling for a full implementation of the law – notably the Manufactured Housing Improvement Act of 2000 (MHIA 2000) – as a key way to fuel more industry sales to meet the demands of an affordable home-hungry public. ##

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Submitted by RC Williams to the Daily Business News for MHProNews.

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