Posts Tagged ‘sustainable level’

New Home Sales Rise in August

September 26th, 2013 Comments off

The National Association of Home Builders (NAHB) reports August sales of new, single-family homes rose 7.9 percent to a seasonally-adjusted annual rate (SAAR) of 421,000 units, offsetting a slight decline in July resulting from a rise in mortgage rates. Says NAHB Chief Economist David Crowe, “We are only about halfway back to what would be considered a sustainable level of activity in a normal economy, and the ongoing housing recovery continues to be slowed by consumers’ concerns about interest rates, as well as weak job growth and uncertainty about what’s happening in Washington.” As MHProNews has learned, regionally new home sales in the South increased 15.3 percent, 19.6 percent in the Midwest, and 8.8 percent in the Northeast. Only the West experienced a decline, falling 14.6 percent.

(Photo credit: Reuters–new home sold)

Multifamily Construction Leading the Recovery

January 23rd, 2013 Comments off

The National Association of Home Builders (NAHB) informs MHProNews multifamily will continue to lead the recovery of the overall housing market in the coming years, now standing at 70 percent of the way back to a sustainable level. NAHB Chief Economist David Crowe says, “We are forecasting construction of 299,000 new multifamily residences in 2013. While this is an improvement from just a few years ago, it is still well below the 350,000 units that are required to keep supply and demand in balance.” Although tight credit continues to be somewhat of an obstacle, as does the rising cost of building materials, Lance Swank of the Sterling Group in Mishawaka, Ind. says, “The market continues to improve as new household formations generate demand, especially in the market-rate rental segment. There is also a change in attitude toward renting—people like the flexibility it gives and the option to be able to easily move to another city or state for a job opportunity.”

Multifamily Housing: Steady but Strong

December 7th, 2012 Comments off

The National Association of Home Builders (NAHB) reports to MHProNews the Multifamily Production Index (MPI), which measures builder sentiment in the multifamily and condominium marketplace, remained steady with a reading of 52, the third consecutive month of readings over 50. Any number over 50 indicates more builders think conditions are better rather than worse. The MPI is a composite derived from construction of low-rent units, market-rate rentals, and for sale units like condos. The market-rate rental component alone hit 69 in Q3 2012, marking the fifth consecutive quarter registering over 60. Meanwhile, the Multifamily Vacancy Index, which measures perceived vacancies by the industry, dropped three points to 33 (the lower the number the fewer the vacancies), after hitting the peak of 70 in Q2 2009. “The multifamily market has recovered substantially since the end of 2010, and now stands at about 70 percent of the way back to a sustainable level. Our baseline forecast calls for further steady growth in the rate of multifamily production,” said NAHB Chief Economist David Crowe.

(Photo credit: BloombergBusinessWeek)