DS News

47 » VISIT US ONLINE @ DSNEWS.COM BUILDING MATERIAL PRICES ALL OVER THE MAP e prices of various building materials can't seem to find common ground, according to the National Association of Home Builders (NAHB), which compiled the prices of softwood lumber, oriented strand board (OSB), gypsum, and ready-mix concrete in a recent report. According to the NAHB's Producer Price Index, softwood lumber prices dropped 3 percent— marking the first time in seven months its prices have fallen and the largest drop in percentage points since September 2016. According to the NAHB, this dip doesn't quite match up with its own data on softwood lumber prices, which showed a drop in price of approximately 1 percent. e organization attributes this anomaly to two factors: the time between different reports in PPI data and the different goods included in the specific index. Further, the NAHB's reported decline is consistent with the Random Lengths Lumber Composite Price (FLCP), which fell 1.3 percent. According to the report, if the downward trend continues, July's PPI report will correct itself and show an increase in prices. Oriented strand board fell by a marginal amount—0.4 percent. It was the first time prices on OSB dropped since December 2016, when they fell 0.5 percent. However, the price index on a year-over-year margin remained 20.9 percent higher and rose 15.2 percent from the start of 2017. Gypsum prices, conversely, have increased 1.3 percent after making a small decline a month prior. ey have fluctuated as much as 10 percentage points. e seasonally adjusted price of ready-mix concrete also increased in June by 0.4 percent, which is in line with its average since 2000. e economy-wide PPI experienced some movement in June (0.1 percent) after staying stagnant a month prior. HIGHER EDUCATION MAY IMPACT FUTURE HOMEOWNERSHIP RATES e pursuit of higher education, among other national trends, is going to play a key role in homeownership rates in the coming years, according to a new study from First American Financial Corporation. e study, dubbed "Six Trends Poised to Reshape Homeownership Demand," looks at the unique factors that shape U.S. homeownership—and how those factors will influence housing demand in the years to come. According to the study, education will factor into homeownership levels on several fronts. For one, it will increase income—and therefore homebuying power—for the more educated generations. "e importance of education in relation to homeownership has almost doubled in less than 10 years," the study reported. "In 1997, the difference in homeownership between those with a high school degree and those with a college degree was 10 percent. In 2016, the difference increased to 21 percent. e good news is educational attainment is growing. So, it is reasonable to expect homeownership rates to grow as well." e likelihood of homeownership actually increases by 3 percent once a person earns a bachelor's degree and another 3 percent for any degrees past that. e pursuit of higher degrees will also force Americans to delay marriage and family formation—both widely known drivers of homebuying. And according to the study, that trend has already had an impact. "Because the marriage rate was increasing between 1995 and 2005 as Generation X got hitched, marriage was a net contributor to the growing overall homeownership rate, but from 2005 to 2004, the declining marriage rate alone has reduced the homeownership rate by 3.5 percentage points," the study reported. Economic conditions—particularly wage and job growth—will also play into the homeownership rates of the future, the study said. "e good news for the real estate industry is that there are some positive trends in income growth," the study stated. "After a period of stagnant wage growth, median household income in the United States increased from $53,718 in 2014 to $56,516 in 2016. is upward trend in income translates, all other factors equal, to an almost 1 percent rise in the likelihood of homeownership." | BANK OF AND ALAILY HEAVNER, BEYERS & | MERSCORP CORPORATION | ORLANS LEGAL GROUP | PROPERTY SERVICES BANKUNITED | FEDERAL HOME MARSHALL | METROCORP CLAIMS | | PRECEDENT FRANKENBERG ALTISOURCE | CAPITAL ONE | CHICAGO | FIRST TITLE | JOHNSON, | MORTGAGE QUINTAIROS, NOBLE SERVICES

• Cover