Housing Starts Move To 2-Year High

The new construction housing market continues to make gains.
Wednesday, the U.S. Census Bureau reported Housing Starts for single-family homes up 5.5 percent in August to a seasonally-adjusted, annualized count of 535,000 units nationwide.

The report marks the fifth month of six that single-family starts increased, and marks the highest starts tally since April 2010 -- the last month of that year's federal homebuyer tax credit program.

A "housing start" is a new home on which construction has started and the steady growth in single-family starts suggests a stronger new york housing market into 2013.

All four U.S. regions showed single-family housing start growth on both a monthly basis and on an annual one :

• Northeast Region : 4.5% monthly growth; 31.4% annual growth
• Midwest Region : 15.6% monthly growth; 74.5% annual growth
• South Region : 3.2% monthly growth; 17.2% annual growth
• Midwest Region : 4.6% monthly growth; 23.9% annual growth

The data is just the latest in a series of signals that today's New York City new construction housing market has put its worst days behind it.

The nation's home builders appear to agree, as well.

Earlier this week, the National Association of Homebuilders released its Housing Market Index, a monthly metric which measures homebuilder confidence in the new construction market.

The homebuilder trade association put the HMI at 40 -- a 6-year high. Builders expect a strong finish to 2012 and for momentum to carry into 2013 and beyond.

The new construction market -- like most of housing -- has been fueled by a combination of the lowest mortgage rates in history, ample access to low- and no-downpayment mortgages, and an ever-shrinking supply of new homes for sale.

In July there were just 142,000 new homes for sale nationwide, down 14% from the year prior. As supply shrinks, all things equal, new home prices rise.

If you've been considering new construction, therefore, talk to builders sooner rather than later. As demand for homes heats up, prices are likely to rise.

Their are Green Shoots forming for housing in 2013. The outlooks better to me. All around statistics are improving.

Till next time

THE NEW YORK REAL ESTATE NURSE^sm  

Homebuilders Getting Optimistic; Higher Home Prices Ahead?

Statistically Speaking. I do a lot of that, it keeps people informed of whats happening in a certain sector or a certain market. Data is very important for many reasons. Most importantly the TRENDS.

Homebuilder confidence continues to rise.

Just two months after falling to a multi-month low, the Housing Market Index surged again in November, climbing another three points to 21. It's the second straight month that the HMI posted a 3-point gain, catapulting the index to an 18-month.

The Housing Market Index is monthly report from the National Association of Homebuilders. It's meant to measure confidence among the nation's homebuilders, scored on a scale of 1-100.

When homebuilder confidence reads 50 or better, it reflects favorable conditions for homebuilders. Readings below 50 reflect unfavorable conditions.

The Housing Market Index has not read north of 50 since April 2006.
As an index, the HMI is actually a composite reading; the result of three separate surveys sent to homebuilders each month. The National Association of Homebuilders asks it members about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current "foot traffic".

In November, builder responses were stronger in all 3 categories :

• Current Single-Family Sales : 20 (+3 from October)
• Projected Single-Family Sales : 25 (+1 from October)
• Buyer Foot Traffic : 15 (+1 from October)

And, beyond the headline data, there is an important, noteworthy item in this month's Housing Market Index.

In November, "Current Single Family Sales" climbed 3 points for the second straight month, and is now at the highest point since May 2010 -- the month after last year's home buyer tax credit expired. And, this increase in sales volume is occurring as new home construction is falling, thereby reducing home inventory nationwide.
That's an important point for New York  home buyers.

With more new home sales and fewer new home listings, prices are likely to increase into 2012. Especially with home builders predicting higher sales levels over the next 6 months, and seeing higher levels of buyer foot traffic through their properties today.

For now, though, home prices are stable and mortgage rates are low. This creates low-cost homeownership throughout New York , and helps new home construction remain affordable.

If you're in the market for new home construction, the next 60 days may prove to be your best time to get "a deal".

I would continue to follow the trends to be a smart housing consumer.

Till next time

The New York Real Estate Nurse

Homebuilder Confidence Rises on Surging Sales Volume, Foot Traffic

Wow Wow we hit 18, now were cooking. Maybe we should buy Homebuilder stocks and really get rich. Don't call your Stock Broker yet.

It is a better number statistically and that's it. We have poor economic conditions to move this above the favorable threshold of 50 on the HMI.

Just one month after falling to a multi-month low, the Housing Market Index rebounded four points to 18 for October. It's the highest reading for the HMI since May 2010 -- the month after last year's homebuyer tax credit expiration.

The Housing Market Index is published monthly by the National Association of Homebuilders and is scored on a scale of 1-100. Readings above 50 indicate favorable conditions for homebuilders. Readings below 50 indicate unfavorable conditions.

The index has been below 50 since May 2006 -- a 66-month streak.

The Housing Market Index is a composite reading; the result of three separate surveys sent to home builders each month. Builders are asked about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current "foot traffic".

In October, builder responses were stronger in all 3 categories :

• Current single-family sales : 18 (+4 from September)
• Projected single-family sales : 24 (+7 from September)
• Buyer foot traffic : 14 (+3 from September)

Meanwhile, of particular interest to today's New York City home buyers is that builders expect volume to surge over the next two seasons. And, with current sales volume rising and foot traffic strengthening, the fall and winter months could be strong ones in the new homes market.

In addition, the builder trade group press release states that rising costs for materials are squeezing building profit margins.

For buyers, it all adds up higher home prices ahead. As builders grow more confident about the housing market, they're less likely to make concessions on pricing or upgrades. Rising building costs fortify that argument. The "great deal" will be tougher to negotiate.

At least mortgage rates are low.

Low mortgage rates are keeping homes affordable in New York and Nationwide. If you're looking for the right time to buy new construction, therefore, this month may be it or not.

Try not to get caught up into reading the monthly housing reports. They are flat and undulating along the so called bottom.

Till next time

The New York Real Estate Nurse