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Posts Tagged ‘pace’

Home Values Spike, especially out West

September 23rd, 2013 Comments off

Of the 30 largest metropolitan areas that the Zillow Real Estate Market report analyzes, 20 experienced annual home value increases of at least ten percent in August, the most significant of which were in California cities—Sacramento rose 34.1 percent—plus Las Vegas and Phoenix. Overall, 85 percent of the 382 markets analyzed by the report saw home prices increase 6.6 percent annually, the largest gain since July 2006 when values rose 7.6 percent. As Stan Humphries, chief economist for Zillow tells nationalmortgagenews, “Double-digit appreciation does help to lift homeowners out of negative equity, and to entice sellers into a low-inventory environment,” but this pace cannot be safely maintained. MHProNews has learned during the coming 12 months Zillow says home values will increase another 5.2 percent to $170,500.

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Most Housing Market News is Good, except…

August 1st, 2013 Comments off

The latest data from Harvard University’s Joint Center for Housing Studies reports the rise in housing prices, while lauded by many, is driving many potential home buyers out of the market because incomes are not rising along with home prices. From 2001 to 2011 the number of households paying over 50 percent of their income for housing rose 6.7 million, an increase of 49 percent. This rise in households (includes renters) severely burdened has hit record highs, just as millions of federal rent subsidies will expire over the next ten years. As MHProNews has learned from creditwritedowns.com, the market is demanding one million new residential units annually. If construction cannot keep up this pace, home prices and rents will continue to rise, and if incomes do not then rise, the housing cost burden will spread to more households.

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Home-building Starts and Permits Drop

July 17th, 2013 Comments off

According to government figures the pace of home building fell in June, mostly due to a drop in multifamily construction, as single-family starts fell one percent from May to June although the rate is still ten percent above year-ago levels. Work began on new homes at a seasonally-adjusted annual rate (SAAR) of 836,000 homes, a drop from 928,000 in May. Building permits also fell, from an SAAR of 985,000 in May to 911,000 in June, but still 16 percent above last June. Analysts attribute the drop in starts and permits to mortgage rates which have been slowly rising for the last ten weeks, although they continue at historically low rates. Still, as CNNMoney informs MHProNews, home prices, home sales and construction continue to be a driving force in the overall economic recovery.

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Job Growth Keeps Pace with Population Growth

July 5th, 2013 Comments off

While the unemployment rate remained at 7.6 percent, job growth in June hit 195,000, 40,000 more than economists expected and equal to the revised rate for May, 2013. While construction and manufacturing changed little, the biggest gains were in leisure and hospitality (up 75,000), professional and business services (up 53,000) and retail (up 37,000). While noting that three-fourths of the new jobs would qualify as low-quality work, J. J. Kinahan, of TD Ameritrade, says wages grew faster in June than the 12-month average. Economists say this level of job growth just keeps pace with the population level, and pales compared to the 250,000 jobs created monthly during the 1990’s, according to CNNMoney. As MHProNews understands, job growth is key to a healthy housing market.

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New Home Construction Continues to Stimulate Economy

July 4th, 2013 Comments off

According to the Commerce Department, of the 45,000 new houses sold in May, construction has not begun on 16,000, nearly 36 percent, up from 26 percent a year ago, and over two times the 14 percent rate from 2008 during the recession. Total new home sales in May rose to their fastest annualized pace since 2008, and permits for building new homes increased to a five-year high. As mortgage rates increase and prices continue to rise, would-be buyers will want to lock-in interest rates, and increasing values make homes a more attractive asset to lend against. However, as National Association of Home Builders Chief Economist David Crowe points out, builders still feel stymied by tight credit as well as shortages in available lots, labor and materials. He estimates starts on single-family homes will increase 150,000 over last year, as nationalmortgagenews informs MHProNews. These figures indicate strength in the home building market which translates into stimulus in the overall economy: Each new home creates three jobs, and triggers purchases of building materials as well as appliances and furniture.

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House Committee to HUD: Hire Manufactured Housing Administrator or Else

June 29th, 2013 Comments off

The 2014 fiscal year House Appropriations Committee measure that outlines budgets for the Dept. of Housing and Urban development (HUD) contains a provision that HUD must choose a permanent administrator of the Office of Manufactured Housing within 120 days of the legislation’s enactment. Introduced by Rep. Chuck Fleischmann (R-Tenn.), if HUD fails to meet this deadline, the agency will lose $50,000 in salaries and expense budgeting for each day the requirement is not met, according to the Manufactured Housing Institute (MHI) newsletter. The report accompanying the bill states that “the Committee understands that a substantial backlog of recommendations approved by the Manufactured Housing Consensus Committee exists, and a lack of action and attention in this area has meant that codes and standards have not kept pace with technological innovation or allowed the industry to keep pace with consumer demand. The Committee looks forward to a more focused and responsive office under permanent leadership.” Knowing of the committee’s activity, a week prior HUD issued a notice announcing its search for someone to fill the administrator post, reversing a long-standing policy to leave the post vacant. As MHProNews knows, this marks an important milestone for the industry.

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New Home Sales Post Increase

May 24th, 2013 Comments off

The National Association of Home Builders (NAHB) reports HUD and Census Bureau figures show sales of newly-built single-family homes rose 2.3 percent in April to a seasonally-adjusted annual rate (SAAR) of 454,000 homes. “Today’s report is further evidence of the gradual, consistent improvement we have been seeing in housing market conditions over the past year,” noted NAHB Senior Economist Robert Denk. “We’re now about half-way back to what could be considered a full recovery, and we do expect to see continual, solid gains in both starts and sales of new homes going forward.” Regionally, new-home sales rose 10.8 percent in the West and 3.0 percent in the South while declining 16.7 in the Northeast and 4.8 percent in the Midwest. As MHProNews has learned, the inventory of new homes for sale rose to 156,000 units, a 4.1 month-supply at the current pace of sales.

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Total Home Sales Rise in April

May 23rd, 2013 Comments off

MHProNews has learned from CNNMoney the National Association of Realtors (NAR) released figures today that show total home sales rose 0.6 percent in April to just under an annual pace of five million, up nearly ten percent from a year ago. Lawrence Yun. Chief economist for NAR, noting consumer traffic is up 31 percent over a year ago, resulting in greater demand than actual sales, says tight credit and low inventory has prevented sales from being well over five million. The median price of a home sold in April rose four percent over March to $242,600, and nine percent over a year ago. Inventory on the market represented a 5.2 month supply at the current pace of sales, up over March but below the 6.6 month supply a year ago. Distressed sales represent 18 percent of all home sales, a drop from 28 percent a year ago. The pace of new home sales has been increasing every month for almost two years, and is at the strongest rate since Nov. 2009 when sales were spurred by a home-buyers tax credit.

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CoreLogic reports Home Price Jump

May 9th, 2013 Comments off

HousingWire tells MHProNews that the most recent CoreLogic home price index spiked 10.5 percent nationally, the 13th consecutive monthly increase in home prices nationally. “For the first time since March 2006, both the overall index and the index that excludes distressed sales are above 10 percent year over year,” said Dr. Mark Fleming, chief economist for CoreLogic. “The pace of appreciation has been accelerating throughout 2012 and so far in 2013 leading into the home buying season,” he adds. Paul Diggle, of Capital Economics, says there is no housing bubble on the horizon. However, “Price gains which are well above twice the pace of income or rental growth are not sustainable in the long-run.” Nevertheless, he expects home prices to continue rising.

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Multifamily Starts Still Strong

April 16th, 2013 Comments off

MHProNews has learned from the National Association of Home Builders (NAHB) figures released by HUD and the Census Bureau indicate total housing starts—single-family and multifamily– rose by seven percent in March, propelled by a 31.1 percent increase in new multifamily construction. As we have reported several times earlier, the rental market is currently very strong and growing. Meanwhile, single-family construction fell 4.8 percent from the previous month, and permit issuance dropped 3.9 percent. NAHB Chief Economist David Crowe, calling it a mixed bag because of the opposite directions of the two markets, says, “The three-month moving average for single-family starts remained unchanged at 628,000 units in March – which is right on pace with NAHB’s forecast for a 25 percent gain in new-home production in 2013.” Regionally, the Midwest, South and the West all gained in single and multifamily housing starts, while the Northeast region fell. Conversely, the Northeast posted a gain in issuance activity, while the other three regions experienced a decline.

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