This accounts for a quarter of a new home’s cost
Almost a quarter of the cost of a new home is down to regulatory charges. That’s according to the National Association of Home Builders which found that when broken down further, 14.6 per cent is due to a higher price for a finished lot resulting from regulations imposed during the lot's development; and 9.7 per cent is the result of costs incurred by the builder after purchasing the finished lot.
"This study demonstrates the type of over-regulation our industry is facing," said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. "Not only is it inhibiting builders' ability to produce competitively priced homes in a still recovering housing market, but this regulatory burden trickles down to the consumer level and prices many would-be buyers out of the market."
Mortgage applications up 0.4 per cent
Mortgage applications in the week ending May 6, 2016 were up by a seasonally-adjusted 0.4 per cent compared to the weak prior. The Mortgage Bankers’ Association’s Market Composite Index was up 1 per cent on an unadjusted basis.
The refinance and purchase indexes both increased (0.5 per cent and 0.4 per cent respectively) while the refinance share of mortgage applications was down slightly to 52.8 per cent (from 52.9 per cent a week earlier).
Maryland’s spring season shows strong start
Realtors in Maryland report that the spring selling season has begun with 6,815 sales in April; a 13.8 per cent rise compared to the same month in 2015.
Average prices gained by 3.9 per cent to $310,659 with median prices rising 5.2 per cent to $267,041.
"We've seen some growth in prices, but overall there's been stability and a very good environment for buyers and sellers." added Casper. "We're very optimistic that we have conditions for sustained, long term growth," said 2016 MAR President Bonnie Casper.
Supply remains a challenge in Maryland with just 3.9 months of inventory compared to 4.8 months in April 2015.