Summit focuses on buyer trends, national political landscape
The Dallas BA’s third annual State of the Industry Summit explored changing buyer trends and provided insight into the national political landscape as it pertains to housing.
A packed venue with more than 200 Dallas BA members heard from Mary Kaye O’Brien, Insight Director for Zillow Group, Paige Shipp, Regional Director for Metrostudy, and NAHB CEO Jerry Howard.
O’Brien and Shipp focused on evolving buyer trends and strategies for builders to improve their market position. O’Brien shared several of Zillow’s insights. They indicated that homeowners still value location first in their search for their next home.
Surprisingly, Zillow’s data indicated that nearly 50 percent of new home buyers who inquired with a builder via their website, never heard back from them.
O’Brien also encouraged builders to emphasize their warranty. She said that many buyers believe existing homes are more proven by the test of time and do not understand advancements in building codes and the assurances that warranties offer.
Shipp urged builders to be transparent in how they depict and price new homes. She cited several examples where computer renderings and upgraded model homes may not fully depict price or visual attributes. She also emphasized the importance of builders having a user friendly website with readily available addresses and links for buyers to locate new communities via navigation apps.
NAHB CEO Jerry Howard’s speech focused on the national political landscape and various issues that NAHB is engaged on. Recently, NAHB has highlighted the need for housing affordability and an increase in production. Home builders across the nation, and particularly in Dallas, have been unable to fully supply market demand for housing since the Great Recession. Howard expressed optimism that housing affordability would, for the first time in his memory, be a significant issue in the upcoming Presidential election.
Howard also commended the Trump Administration for their willingness to hear from industry groups. “Regardless of whether you like or dislike Trump, NAHB has met with his administration more than the last several administrations combined,” Howard said. “This unprecedented access allowed us to work directly with Commerce Secretary Wilbur Ross to reduce the price of lumber in the wake of recent tariffs.”
At their peak last summer, lumber prices were adding nearly $9,000 to the price of a new single family home as manufacturers took profits well in excess of the duties and tariffs levied by the Trump Administration on Canadian lumber. NAHB pointed out this collusion and their advocacy efforts have since reduced lumber cost increases by more than half. Howard believes that forthcoming trade deals may provide additional long term stability for lumber prices.
Near the conclusion of his program, Howard fielded several questions from the audience. Many pertained to NAHB’s efforts on immigration and workforce development. He praised the Texas Association of Builders and Dallas BA for taking the lead on those issues.
Click here to download the Paige Shipp and Mary Kay O’Brien’s presentation.