Like many industries and markets, the residential real estate market was adversely affected by the pandemic. However, despite this disruption, the housing market is resilient with increasing homeownership in this sector. Industry reports actually see a rise in revenues through 2028. One such report from IBISWorld projects that the Housing Developers market size, measured by revenue, of the Housing Developers industry is expected to reach or exceed $202.7bn in 2023.
It added that: “A rising homeownership rate indicates growing consumer preference toward purchasing property rather than renting, increasing demand and industry revenue. The homeownership rate will increase in 2023, representing a potential opportunity for the industry. The residential real estate market in the United States is expected to register a CAGR of over 5.77% during the forecast period. Furthermore, the COVID-19 impact was severe on the market. Despite the pandemic crisis, residential real estate in the country is in the recovery phase, as the sales in the country quickly bounced back to pre-pandemic levels.”
Another report from Mordor Intelligence added: “Since the start of the COVID-19 pandemic, the property market in the United States has been thriving. Many purchasers took advantage of the low-interest rates to restructure their mortgages, relocate, or take a step toward the American Dream by purchasing their first home. Owing to this, the number of home sales increased sharply…and has since stayed higher than before the pandemic. Prior to the pandemic, home prices had been on the rise, but with demand at an all-time high in 2020, the Freddie Mac House Price Index recorded a startling 11.3% increase.” Active companies in the markets this week include Lennar Corporation, Toll Brothers, Inc., International Land Alliance, Inc., KB Home, PulteGroup, Inc.
At the beginning of 2021, about 60% of properties were sold above their advertised prices as a result of the ‘race for space’ among homebuyers. Although the market has begun to moderate, the lack of available inventory and rising construction costs are anticipated to keep pushing up the price of homes. The price of single-family homes increased by more than 20% in numerous states of the United States. As of the end of 2021, some of the states with the highest property appreciation rates were Arizona, Utah, Idaho, Florida, and Tennessee. Furthermore, the mean value of a single-family home was significantly higher than the average sales price of both new homes and existing homes in states like California, Washington, and Massachusetts.
International Land Alliance, Inc., an international land investment and development firm, reported sales for January 2023 of $1,340,000, compared to a total $9,000 reported for the three months ended March 31, 2022.
Roberto Valdez, Chairman and CEO of ILAL, noted that the Company is already reaping the benefits of the new officers brought in January. Valdez tabbed Michael Cresci to be the Vice President of Sales and Robert Rios as Vice President of Marketing.
“What investors are seeing is the precise execution of our business plan resulting in a record revenue month for January and Michael and Robert are already making significant contributions,” Valdez said. “We will continue to expand our marketing and sales efforts in this quarter to efficiently move our current inventory.”
Not only did gross revenue numbers for January exceed what was recorded for Q1 of 2022, but for the entire 2022 fiscal year as well.
“While we are extremely pleased with the January results, no one at the Company is sitting around patting each other the back,” Valdez added. “We have set a tremendously high bar for success and I believe we have the right team in place to exceed those goals.”