Luxury homes are selling at a rapid pace — while starter homes pile up as buyers fail to show

It’s a tale of two markets — and it all comes down to the economy as the rich snap up luxury pads and the starter-home market goes cold.

Starter-home inventory was up 4.5% year-over-year in the U.S. in May and price cuts climbed as economic headwinds like inflation and hiring slowdowns caused starter-home sales to drop 5.4% year-over-year, according to new data from listings giant Zillow.

Meanwhile, luxury listings — defined as the top 5% of property values in a given region — slipped 5.2% while sales in this tier increased 6.2% in May, driven by stock market gains. More here: (Source)

The S/M Take: 

In a bifurcated market, the difference between winning and losing will, for now, come down to the segment in which you serve.

For brands that market to the luxury segment, cherish the tailwinds of a buying audience relatively insulated from high mortgage rates and tariff disruption. Focus on features and enduring quality… and bluntly, make hay while the sun shines.

For brands that market to the value segment, you can be an ally to a stressed cohort. They’re caught in the blender of mortgage rates that won’t relax and supply chains that won’t calm. But home pricing is moderating, so lean into your value props and financing options. Your efforts will be appreciated and loyalty will be created.

Timber troubles: Trump's tariffs and Canadian wildfires are lighting up softwood lumber prices — and housing costs

Canadian wildfires are driving up the price of wood products that the U.S. construction industry depends on — with knock-on effects on housing.

Western Spruce Pine Fir futures were selling for $653 per thousand board feet in late July, not far off last year's high, according to Lumber Flow, and up from a low of $524 in late January. The 937 wildfires threatening forests throughout British Columbia are driving that increase.

Experts say that President Donald Trump's proposed 50% tariff on Canadian goods is adding to uncertainty around the supply chain. Set to take effect Aug. 19, the 50% tariffs would directly apply to Canadian plywood, fiberboard and other wood-derived products used in homebuilding. More here: (Source)

The S/M Take: 

Oh, Canada. How much does this matter? A bunch. Like a No. 4-in-the-whole-world-bunch. While the U.S. remains the world’s biggest lumberjack, check the graphic: Canada slots in behind China and Russia (both of which come with their own special trade friction) and together with the U.S. provides a quarter of the world's lumber.

So when we smell those wildfires and hear about the next tariff threat, this is not a Great White North problem. It’s a builder next door problem.

Big box employees reveal the customer things they absolutely hate

We’re a bit embarrassed to admit we’ve done a few of these. More here: (Source) 

The S/M Take: 

 Come for the 38 bad behaviors, stay for the angry rebuttals in the comments.