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Posts Tagged ‘David Crowe’

Economic and Housing Activity Remains at 88 Percent

June 6th, 2014 Comments off

Representing a net gain of nine metropolitan areas year-over-year, 56 returned to or exceeded their last normal levels of economic and housing activity out of 350 metros, according to the National Association of Home Builders (NAHB)/First American Leading Markets Index (LMI). Based on current permit, price and employment data, MHProNews has learned, the average LMI is running at 88 percent of normal economic and housing activity, with no change from May. Thirty percent of the metro markets saw an improvement since last month, and 83 percent saw their scores rise during the past year. “Of the three components in the LMI, the one lagging is single-family housing permits, which is only 43 percent of the way back to normal while home prices are 26 percent above their last normal level and employment is at 95 percent of its previous norm,” said NAHB Chief Economist David Crowe. “In the 22 metros where permits are at or above normal, the overall index indicates that these markets have fully recovered.” ##

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Multifamily Housing Production Rises

May 30th, 2014 Comments off

The latest Multifamily Production Index (MPI) released by the National Association of Home Builders (NAHB) reports production of apartments and condominiums rose three points in the first quarter to 53, marking the ninth consecutive quarter with a reading of 50 or above. The MPI is derived from three key elements of the multifamily housing market as determined by builder and developer sentiment: Construction of market-rate rentals, low-rent units and condominiums. The Multifamily Vacancy Index (MVI), which measures the industry’s perception of vacancies, fell one point to 37, indicating fewer vacancies, as MHProNews.com has been informed. “The MPI shows stable production of apartments and condos, which is what our forecast calls for,” said NAHB Chief Economist David Crowe. “In 2014, we expect multifamily starts to grow about 6 percent over 2013, to about 326,000 units.” ##

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Housing Starts Post Highest Pace in 8 years

May 16th, 2014 Comments off

The jump in multifamily housing starts for April of 39.6 percent is the fastest pace for this housing sector since Jan. 2006, and helped propel total housing starts to 1.07 million units, a 13.2 percent increase over March, according to figures released by the Department of Housing and Urban Development (HUD) and the Census Bureau. MHProNews.com understands single-family starts rose only +.08 percent to a seasonally adjusted rate of 649,000 units, according to the National Association of Home Builders (NAHB). “The growth in multifamily production is a very positive development as it shows an expected increase in household formations from young people renting apartments and taking the first step into the housing market,” said NAHB Chief Economist David Crowe. “These young households will form the demand for ownership in the future.”

All four regions showed gains in single-family and multifamily for April: The Midwest posted a 42.1 percent increase; the Northeast registered a gain of 28.7 percent; the West reported an 11.1 percent increase, and the South nudged up 1.5 percent. Building permit applications rose eight percent, due almost totally to a 21.8 percent gain on the multifamily side, and a marginal increase on the single-family side of 0.8 percent. ##

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Builder Confidences Rises for 55+ Market

May 8th, 2014 Comments off

The National Association of Home Builders (NAHB) reports their most recent single-family 55+ Housing Market Index (HMI) is up the first quarter of 2014 to 50, the highest Q1 reading since the survey of builders’ confidence began in 2008. It is also the tenth consecutive quarter of year over year improvements, MHProNews has learned. Measuring builder confidence in the market, the survey is based on current sales, prospective buyer traffic and anticipated six month sales for single-family homes and multifamily condominiums. Says NAHB Chief Economist David Crowe: “The 55+ segment of the housing market is stronger now than it was a year ago, helped by factors like rising house prices, which has increased owners’ equity and allowed them to buy in a 55+ community. But there are still some headwinds hampering a stronger recovery, as builders in many markets are facing tight credit conditions and a lack of lots and labor.” ##

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New Home Sales Drop in March

April 23rd, 2014 Comments off

According to the National Association of Home Builders (NAHB), sales of newly built, single-family homes fell 14.5 percent to a seasonally adjusted annual rate of 384,000 units for March. Based on data from the U. S. Department of Housing and Urban Development (HUD) and the Census Bureau, sales dropped 21.5 percent in the Midwest, 16.7 percent in the West, and 14.4 percent in the South. The Northeast saw an increase of 12.5 percent, MHProNews.com has learned. The inventory of new homes for sale rose to 193,000 units in March, equivalent to a six-month supply at the current sales pace. “Overly stringent underwriting standards for mortgages have had a detrimental effect on modest-priced markets and have hit first-time home buyers particularly hard,” said NAHB Chief Economist David Crowe. “As a result, most of the sales are coming from a smaller pool of buyers who have a more established credit history, are more likely to finance with higher cash downpayments and are purchasing higher-priced homes.”##

(Image credit: CNNMoney–new housing slides)

Builder Confidence Nudges Up One Point

April 16th, 2014 Comments off

Builder confidence in the market for newly built, single-family homes rose one point to 47 in April following a March reading of 46 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Based on a survey the NAHB has been utilizing for 30 years, the HMI gauges builders perceptions of current single-family home sales, expectations of sales for the coming six months and traffic rate of prospective buyers. “Job growth is proceeding at a solid pace, mortgage interest rates remain historically low and home prices are affordable,” said NAHB Chief Economist David Crowe. “While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor.” Regionally, as MHProNews has learned, the West posted a nine point decline, the Midwest witnessed a fall of four points, while the Northeast and South each fell two points.

(Photo credit: theglobeandmail.com–prospective homebuyers)

New Home Sales fall in February

March 25th, 2014 Comments off

The National Association of Home Builders (NAHB) reports sales of newly-built, single-family homes fell 3.3 percent to a seasonally annual adjusted rate (SAAR) of 440,000 units in February, 2014, based on data from the Census Bureau and the Department of Housing and Urban Development (HUD). “We still expect 2014 will be a strong year for housing,” said NAHB Chief Economist David Crowe. “The first two-month average of 2014 is exactly in line with where 2013 left off. If not for the unusual weather, we would easily be ahead of last year’s pace. We also continue to see household formations and pent-up demand driving sales forward.” Regionally, new home sales fell 32.4 percent in the Northeast, 15.9 percent in the West, and 1.5 percent in the South. MHProNews.com has learned sales grew in the Midwest 36.7 percent, following a particularly slow January. ##

(Image credit: CNNMoney–housing slides)

Perception of Market by Multifamily Builders Falls

February 27th, 2014 Comments off

The National Association of Home Builders (NAHB) reports the Multifamily Production Index (MPI) fell slightly in the fourth quarter 2013 to 50, which means half of the builders saw the market as good and the other half as poor. The survey measures builders’ perceptions of three aspects of the market: Construction of low-rent units, market-rate rental units, and for sale units (condominiums), and this marks the eighth consecutive reading of 50 or better. Meanwhile, as MHProNews.com has learned, the Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perceptions fell two points to 38, wherein lower numbers means fewer vacancies. The MVI peaked at 70 in the second quarter of 2009, improved during 2010 and has remained fairly steady since then.

“This quarter’s MPI results are in line with NAHB’s forecast that calls for increased production of new apartments in 2014, but at a slower pace than last year,” said NAHB Chief Economist David Crowe. “The results are also in line with recent downturns in other economic indicators, due to unusually severe weather in parts of the country that disrupted supply chains and affected confidence in several sectors of the economy.” ##

(Photo credit: bloombergbusinessweek.com–multifamily construction)

New Home Sales Rise in January

February 26th, 2014 Comments off

According to statistics released by the Department of Housing and Urban Development (HUD) and the Census Bureau, the National Association of Home Builders (NAHB) reports sales of newly-built single-family homes rose 9.6 percent in January to a seasonally-adjusted annual rate (SAAR) of 468,000 units, marking the strongest pace since July 2008. As MHProNews.com knows, the rate in Dec. 2013 was an SAAR of 427,000 units. “We saw a weaker sales number in December 2013 than was previously trending, and I think much of January’s increase is due to sales catching up with pent up demand,” said NAHB Chief Economist David Crowe. “Still, there is little doubt that historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace.”

Regionally, sales spiked 73.7 percent in the Northeast, 11.0 percent in the West, and 10.4 percent in the South. The Midwest saw new home sales fall 17.2 percent, likely, analysts say, because of the harsh winter that has swept the region. The 4.7 month supply of new homes at the current sales pace remained steady at 184,000 units. ##

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Housing Starts Fell in January

February 19th, 2014 Comments off

According to newly-released figures from the Census Bureau and the U. S. Department of Housing and Urban Development (HUD), housing starts fell 16 percent to a seasonally adjusted annual rate of 880,000 units in January, reports the National Association of Home Builders (NAHB). Of these, single-family housing starts accounted for 573,000 units, a decline of 15.9 percent, while multifamily comprised 307,000 starts, falling 16.3 percent. Says NAHB Chief Economist David Crowe, “Though the decline in starts is largely weather related, it is worth noting that on the upside housing production for the fourth quarter was above 1 million for the first time since 2008 while single-family permits held relatively steady.” Single-family permits, seen as a measure of future activity, dropped 1.3 percent, as MHProNews.com has learned. ##

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