THE HOUSING MARKET

Since World War II the U.S. has suffered 11 recessions. A long and tumultuous past, the housing market tells a cyclical story of crash and recovery. While 2008 marked one of the lowest points in the history of the industry, it is just one example of the challenges Regency Builders has overcome since our start in 1973.

HISTORY

  • 1981 CRISIS

    During the Carter Presidency, mortgage rates hit an all-time high of 18.45%. This dropped affordability and ownership to an all-time low as mortgage rates priced most Americans out of the market.

  • 1990s RECESSION

    A combination of the Savings & Loans “credit crunch” from the late 1980s colliding with real estate asset price inflation, most notably in the Commercial Real Estate Sector, are most commonly blamed for the early 1990s recession.

  • 9/11 AFTER EFFECT

    In the aftermath of September 11, Americans sought refuge in family and home, creating a “nesting” effect in new home construction. The years that followed this crisis were the highest building volume years Regency has experienced in our 48 year history – a pre-recession high of $45 million in new construction.

  • 2008 CRASH

    At the peak of the recession, building permits were 89% down nationally, and Regency Builders followed trend – with an 84% decrease in sales. Down to $7 million, we hit our lowest point in business. Nationally speaking, the median sales price of single-family homes declined from $256,000 in 2006 to $211,000 in 2009. [3]

  • '08 - '13 RECOVERY

    The years following the crash have been filled with strong government reactions, such as the Frank Dodd Act, appraisal scrutiny and strict lending policy, making new construction appraisal and financing a formidable challenge.

  • TODAY

    The new construction outlook at a national level is healthy – with strong predictions through 2025. While multi-family has led the way out of the recession, it is predicted that next year’s single family growth rate will exceed a flat multi-family market.

30 YEAR MORTGAGE RATES

  • 1981

    18.45%

    All-time High

  • 1990

    10.04%

  • 2001

    6.82%

  • 2008

    6.09%

  • 2012

    3.35%

    All-time Low

  • TODAY

    3.6%

TODAY'S INDUSTRY TRENDS

HIGH-END CONSTRUCTION

STRONG

High-end custom home building is strong, with affluent buyers representing a segment who is better able to secure financing and a down payment for new home construction. This trend, coupled with strong builder confidence in the coming years will help rebuild the industry.

SOCIAL MEDIA EXPECTATIONS SET THE

BUDGET

Social media platforms such as Pinterest and Houzz provide a variety of home building ideas. Although providing great inspiration and endless possibilities, these sites may create an unrealistic view of what can be accomplished within a budget, creating a “champagne taste on a beer budget.”

How today’s industry determines the cost of my new home tomorrow.