• Market Insights

    Sales of New Single-Family Houses Are Up While Building Permits Are Not

    The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential sales statistics for April 2023:

    • Sales of new single‐family houses in April 2023 were at a seasonally adjusted annual rate of 683,000.
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    • This is 4.1% above the revised March rate of 656,000.
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    • This is 11.8% above the April 2022 estimate of 611,000.
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    • The median sales price of new houses sold in April 2023 was $420,800.
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    • The average sales price was $501,000.
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    • This represents a supply of 7.6 months at the current sales rate.
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    Residential Construction

    Today’s release is on the heels of the following new residential construction statistics for April 2023:

    Building Permits

    • Privately‐owned housing units authorized by building permits in April were at an annual rate of 1,416,000.
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    • This is 1.5% below March and is 21.1% below the April 2022 rate.
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    • Single‐family authorizations in April were at a rate of 855,000. This is 3.1% above the March figure.

    Housing Starts

    • Privately‐owned housing starts in April were at an annual rate of 1,401,000. This is 2.2% above March but is 22.3% below the April 2022 rate.
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    • Single‐family housing starts in April were at a rate of 846,000. This is 1.6% above March.

    Housing Completions

    • Privately‐owned housing completions in April were at an annual rate of 1,375,000. This is 10.4% below March, but is 1.0% above the April 2022 rate.
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    • Single‐family housing completions in April were at a rate of 971,000 This is 6.5% below the March rate.

    Sources: census.gov

  • Lane Hipple Sponsors 2nd Annual Noelle’s Light Golf Classic

    The charity event helped raise over $70,000

    The mission of Noelle’s Light is to deliver financial support to distressed families that are receiving treatment & care following a life-threatening fetal diagnosis. Their efforts are dedicated to uplifting families during their time of need. Eligible families can receive up to $5,000 in financial assistance to cover unexpected out-of-pocket expenses.

    On Monday, May 22nd, partners and employees of Lane Hipple participated in a golf tournament at Riverton Country Club in Cinnaminson, New Jersey to raise awareness and to support this important and impactful cause. For the second consecutive year, we joined founders Jodi and Alex Laughlin along with many others to help continue their efforts to support families in need through financial assistance, mentorship, and social networking.

    Left: Chief Operating Officer Mike Stringer, Managing Partner Thomas Lane, Jr., Financial Planner Gregory Reading, and Partner Thomas Lane, III.
    Right: Gregory Reading accepts the first place trophy from Noelle’s Light Co-Founder Alex Laughlin

    More About Noelle’s Light

    Noelle’s Light, Inc. is a New Jersey non-profit corporation whose mission is to provide financial support to distressed families that are receiving treatment and care following a life-threatening fetal diagnosis.

    The organization was incorporated in December 2017 and began operating in 2019 after receiving its federal recognition as a tax-exempt public charity under US Internal Revenue Code 501(c)(3).

    ​Noelle’s Light is co-founded by parents Jodi & Alex Laughlin, who lost their infant daughter in 2016 due to complications from a rare fetal condition. They emerged from their experience with the perspective that most families are financially unequipped to navigate the costs a life-threatening diagnosis.

    The organization is rooted in hope, compassion, and the duty we all have to help others in their time of need.

    DONATE HERE

  • Retail Sales Up 0.4% in April and Up 1.6% Over April 2022

    Plus Interesting Highlights from 2021 Retail Sales

    The U.S. Census Bureau conducts the Advance Monthly Retail Trade and Food Services Survey to provide an early estimate of monthly sales by kind of business for retail and food service firms located in the United States.

    Each month, questionnaires are mailed to a probability sample of approximately 4,800 employer firms selected from the larger Monthly Retail Trade Survey.


    Retail Sales Up in April 2023

    On Tuesday, the U.S. Census Bureau announced the following advance estimates of U.S. retail and food services sales for April 2023 adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $686.1 billion, up 0.4% from the previous month, and up 1.6% above April 2022.

    Further:

    • Total sales for the February 2023 through April 2023 period were up 3.1% from the same period a year ago.
       
    • The February 2023 to March 2023 percent change was revised from down 0.6% to down 0.7%.
       
    • Retail trade sales were up 0.4% from March 2023, and up 0.5% above last year.
       
    • Nonstore retailers were up 8.0% from last year
       
    • Food services and drinking places were up 9.4% from April 2022.

    Highlights From Total U.S. Retail Sales in 2021

    • Retail sales for the nation increased 17.1%, from $5,572.0 billion in 2020 to $6,522.6 billion in 2021.
       
    • Men’s clothing stores had $8.3 billion in sales in 2021, up 59.1% from 2020.
       
    • Motor Vehicle and Parts Dealers’ sales increased 22.8%, from $1,208.2 billion in 2020 to $1,484.1 billion in 2021.
       
    • Grocery Store sales increased 4.3%, from $759.4 billion in 2020 to $792.3 billion in 2021.
       
    • Gasoline Station sales increased 32.6%, from $426.9 billion in 2020 to $566.1 billion in 2021.
       
    • Electronic shopping and mail-order houses sales increased 15.4%, from $891.1 billion in 2020 to $1,028.0 billion in 2021.

    Sources: census.gov

  • Paying Off Your Mortgage vs. Investing More

    What’s the Best Strategy for Your Financial Future?

    Learn the Benefits and Drawbacks of Both Options

    Are you wondering about the benefits and drawbacks of paying off your mortgage vs. investing? Paying off your mortgage early and investing more are both strategies that can help you achieve long-term financial stability, but it can be difficult to determine which goal to prioritize. In this article, we’ll explore the pros and cons of both strategies to help you determine which may be the best for your financial future.

    Benefits of Paying Off Your Mortgage Early

    First, let’s consider the benefits of paying off your mortgage early. It sounds ideal, right? You can save money in the long run and own your home outright more quickly than the terms of your loan determined. By making additional payments or accelerating your payment schedule, you can reduce the amount of interest you pay over the life of your loan, potentially saving tens of thousands of dollars. Additionally, paying off your mortgage early can provide a sense of financial security and peace of mind, as you will own your home outright and have no mortgage payment regardless of what the future may hold.

    Drawbacks of Paying Off Your Mortgage Early

    Of course, the question of paying off your mortgage vs. investing would be an easy decision if there were only clear benefits to one decision or the other. However, there are also some drawbacks to paying off your mortgage early. If you put all your extra money toward your mortgage, you may miss out on other opportunities to invest that money and earn higher returns. Additionally, if you focus too heavily on paying off your mortgage, you may not be able to take advantage of other financial opportunities, such as saving for retirement or building an emergency fund. So, before you opt for paying off your mortgage vs. investing more – or focusing on another important financial goal – consider the opportunity cost of putting all your financial eggs in one basket, so to speak.

    Related Article: How Inflation Impacts Wealth Management and Investment Strategies

    Benefits of Investing More

    While there are clear benefits to paying off your mortgage vs. investing, don’t lose sight of the fact that investing more can be a powerful tool for building long-term wealth. By investing in stocks, mutual funds, or other assets, you have the potential to earn higher returns over time – potentially even outpacing the interest rate on your mortgage. Additionally, investing can provide diversification and help you build a well-rounded portfolio that can weather market fluctuations and economic downturns.

    Drawbacks of Investing More

    Investing, even in low-risk assets, does come with some risks. There is always a chance that you may lose money, particularly if you invest in riskier assets. Additionally, investing requires discipline and a long-term perspective. You must be prepared to weather market ups and downs, and not panic or make rash decisions when the market takes a downturn. If you already struggle with keeping your emotions in check with regard to your investments, it may not be best for you to significantly increase the dollar figure you’re investing.

    Paying Off Your Mortgage vs. Investing More: What’s Right for You?

    As with many financial decisions, what is best for your financial future truly comes down to your unique circumstances, goals, and priorities. If you value the security of owning your home outright and want to reduce your debt, paying off your mortgage early may be the best choice for you. On the other hand, if you’re willing to take on some risk and prioritize long-term wealth building, investing more may be the better choice.

    At the end of the day, paying off your mortgage or investing more are both valid strategies for achieving long-term financial stability. By weighing the pros and cons of each approach and considering your individual circumstances and priorities, you can make an informed decision about which strategy is right for you.

    If you’d like to discuss paying off your mortgage vs. investing more, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-452-8026, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • National Vacancy Rates Higher Versus This Time Last Quarter and Last Year

    The U.S. Census Bureau announced the following residential vacancies and homeownership statistics for the first quarter 2023:

    • National vacancy rates in the first quarter 2023 were 6.4% for rental housing and 0.8% for homeowner housing.
       
    • The rental vacancy rate was higher than the rate in the first quarter 2022 (5.8%) and higher than the rate in the fourth quarter 2022 (5.8%).
       
    • The homeowner vacancy rate of 0.8% was virtually the same as the rate in the first quarter 2022 (0.8%) and virtually the same as the rate in the fourth quarter 2022 (0.8%).
       
    • The homeownership rate of 66.0% was not statistically different from the rate in the first quarter 2022 (65.4%) and not statistically different from the rate in the fourth quarter 2022 (65.9%).
       
    • In the first quarter 2023, the median asking rent for vacant for rent units was $1,462.
       
    • In the first quarter 2023, the median asking sales price for vacant for sale units was $319,000.
    • Approximately 89.6% of the housing units in the United States in the first quarter 2023 were occupied and 10.4% were vacant.
       
    • Owner-occupied housing units made up 59.1% of total housing units, while renter-occupied units made up 30.5% of the inventory in the first quarter 2023.
       
    • Vacant year-round units comprised 7.9% of total housing units, while 2.5% were vacant for seasonal use.
       
    • Approximately 2.1% of the total units were vacant for rent, 0.5% were vacant for sale only and 0.6% were rented or sold but not yet occupied.
       
    • Vacant units that were held off market comprised 4.8% of the total housing stock – 1.5% were for occasional use, 0.8% were temporarily occupied by persons with usual residence elsewhere (URE) and 2.5% were vacant for a variety of other reasons.

    Sources: census.gov