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HomeAdvisor's Hunter: Homebuilders Will Feel Squeeze (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,
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  Speaker 1: Bloomberg nine to the countries, Jus General one nine and
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  Speaker 1: This is taking stock. Coming up on taking stock, We're
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  Speaker 1: gonna take stock of home ownership. We'll also talk about
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  Speaker 1: a shift that's going on toward long deferred major renovations
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  Speaker 1: and remodeling projects. Talk about kitchens, bathrooms, and whole house remodels.
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  Speaker 1: That's all coming up with Brad Hunter, chief Economist, Home Advisor.
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  Speaker 1: Right now, let's go to Charlie Pellett to the Bloomberg
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  Speaker 1: point five percent. And now let's take a look at
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  Speaker 1: I'm Jill Schneider. This news update is brought to you
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  Speaker 1: Global News twenty four hours a day, powered by more
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  Speaker 1: I'm Jill Schneider, and this is Bloomberg, Charlie, and we
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  Speaker 1: thank you. And again recapping the SMP five hundred indecks
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  Speaker 1: down nine at one sixty three, a drop there of
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  Speaker 1: five tenths of one percent. And again the down industrials
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  Speaker 1: trading lower by eighty nine points, drop of five tenths
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  Speaker 1: of one percent. I'm Charlie, PA, that's a Bloomberg business
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  Speaker 1: flash you're listening to. Taking stocked with Pim Fox and
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  Speaker 1: Kathleen Hayes on Bloomberg Radio. Housing getting its groove back.
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  Speaker 1: Housing market has been show more signs of life. Sales
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  Speaker 1: of previously owned homes last month hit their highest level
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  Speaker 1: since two thousand seven. This all according to the National
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  Speaker 1: Association of Real Chairs. Mortgage applications aimed at purchasing a
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  Speaker 1: home have been on the rise, and hard housing stock
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  Speaker 1: figures earlier this week showed that groundbreaking on new homes
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  Speaker 1: rebounded in June. Here to tell us more about the
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  Speaker 1: home building sector is Brad Hunter. He's chief economist for
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  Speaker 1: Home Advisor and he can be followed on Twitter at
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  Speaker 1: Bradley Hunter. Brad thanks very much for coming in. Good
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  Speaker 1: to see him. All right. Tell people, first of all,
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  Speaker 1: before we get into the details of housing, tell us
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  Speaker 1: what is home Advisor. Home Advisor is an online marketplace
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  Speaker 1: where we connect people who are homeowners that need help
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  Speaker 1: from a professional to do some sort of home improvement project. So,
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  Speaker 1: for example, if you're looking for someone to do the
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  Speaker 1: electrical work on your house, or trying to maybe get
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  Speaker 1: a carpenter or a subcontractor and of that. Yeah, a
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  Speaker 1: remodel of a room or any kind of repair even
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  Speaker 1: made services. Okay, And it is a division, separate business
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  Speaker 1: division of I A c interactive correct, right, chief exactly,
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  Speaker 1: Barrett Dialer. Maybe he calls for some who same as
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  Speaker 1: match dot Com, same same parent companies match dot Com.
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  Speaker 1: So in a sense, you're matching up the home build
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  Speaker 1: the home improvement expert with with the customer. All right,
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  Speaker 1: what's your take right now on the on the home
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  Speaker 1: building industry in the United States, the state of housing,
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  Speaker 1: The home building business is still proceeding a pace. You know.
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  Speaker 1: I think that we're gonna be up twelve for single family.
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  Speaker 1: I think that we're probably topping out on multi family.
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  Speaker 1: I think we're hitting a saturation point now. It's hard
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  Speaker 1: to make deals pencil nowadays on multi family where land
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  Speaker 1: prices are. It's getting harder with the single family with
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  Speaker 1: land prices too, So the builders are going more to
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  Speaker 1: the remote locations and UH but as a consequence, they're
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  Speaker 1: able to buy the land cheaper and they're able to
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  Speaker 1: bring product in that sometimes is under two hundred thousand
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  Speaker 1: dollars for a new house, let's express homes, that kind
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  Speaker 1: of thing. So the demand is there, but the supply,
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  Speaker 1: at least in the areas that are most most desirable,
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  Speaker 1: are lacking. Demand is growing and supply is growing, but
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  Speaker 1: it's a struggle to keep up in a sense because
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  Speaker 1: of the land shortages and then the UH land prices.
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  Speaker 1: We're back above previous peak land prices for for developed
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  Speaker 1: lots now and a lot of markets around the country,
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  Speaker 1: And of course we're not anywhere near well getting near
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  Speaker 1: previous peak home prices. But the builders are feeling a squeeze,
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  Speaker 1: and I think they're gonna feel a little bit more
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  Speaker 1: of a margin squeeze going forward. All right, Let's say
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  Speaker 1: you actually already have a home to live in UH
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  Speaker 1: and you're looking for renovation and remodeling statistics to help
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  Speaker 1: you understand some of the trends. You say that you've
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  Speaker 1: noticed a shift that's going on. Yeah, we uh. We
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  Speaker 1: track about ten million service requests going through our network
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  Speaker 1: each years, so we have a lot of granularity, a
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  Speaker 1: lot of detail on what's going on with home improvement,
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  Speaker 1: and we're seeing a shift towards more major renovations that
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  Speaker 1: is not so many of the sort of basic maintenance
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  Speaker 1: and repair operations, but more like you know, entire kitchen
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  Speaker 1: remodels and more of the bathroom remodels. Garage remodels are
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  Speaker 1: up sixty percent. We're seeing multi room major remodels up
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  Speaker 1: over the last year. You noted that the number one
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  Speaker 1: fastest growing type of service request is for moving services. Yeah.
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  Speaker 1: What does that tell you, Well, if you look at
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  Speaker 1: what happened with the home sales number that came out
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  Speaker 1: this morning, strong one point one pc increase um, there's
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  Speaker 1: more churn, as I call it, and when there's churn,
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  Speaker 1: there's more need for home improvement. What happens is the
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  Speaker 1: person is getting ready to sell the house. They have
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  Speaker 1: to get some contractors to come in, fix things up,
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  Speaker 1: get it ready to pass the inspection, and get it
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  Speaker 1: ready to show. So they're putting on fresh paint and
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  Speaker 1: everything like that. And then when the new person comes
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  Speaker 1: and buys it, they want to personalize it, they want
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  Speaker 1: to make it their own place. So they say, well,
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  Speaker 1: I don't like these cabinets, are going to replace those
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  Speaker 1: in flooring and whatever. What is the Homeowner Happiness Intacts.
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  Speaker 1: That's something that's actually officially coming out tomorrow, so you
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  Speaker 1: and your listeners are getting a little bit of a
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  Speaker 1: sneak preview of it. We surveyed eighteen thousand homeowners around
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  Speaker 1: the country and we asked them questions across a spectrum
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  Speaker 1: of three major categories, which is the dwelling, the community
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  Speaker 1: they live in, and accessibility and convenience. So how happy
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  Speaker 1: are you among across those those factors? And San Francisco
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  Speaker 1: is the place where in the country people are the
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  Speaker 1: happiest with where they live. Couldn't have something to do
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  Speaker 1: with the weather. The weather is actually one of the
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  Speaker 1: one of the strong indicators there. And uh, you know,
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  Speaker 1: it's a it's overall, just across the board almost every
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  Speaker 1: category of what people like. Uh. The one thing that
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  Speaker 1: they did say that they didn't like so much is
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  Speaker 1: the commuting. The commuting all right, so all right, So
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  Speaker 1: if you go down from not down, but the next
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  Speaker 1: city that you've found to be in the happiness index.
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  Speaker 1: Where else? If you're not in San Francisco, where do
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  Speaker 1: people want another? Another couple of popular places are Seattle, Denver. St.
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  Speaker 1: Louis very strong in terms of the homeowner hack happiness
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  Speaker 1: index in all of those cities. All right, give us
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  Speaker 1: the worst, the one at the at the at the bottom.
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  Speaker 1: What is it. I think it's a Washington d C. Yeah, Washington,
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  Speaker 1: it's one of the words. And also commuting is a problem.
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  Speaker 1: Milwaukee is also on your list. Yeah, not not high community.
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  Speaker 1: That was not very high either. Brad Hunter, thank you
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  Speaker 1: very much, Chief economist for a Home Advisor. You can
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  Speaker 1: follow him on Twitter at Bradley Hunter. I'm pim Fox
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  Speaker 1: and this is Bloomberg coming up on taking stock. It's
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