Homebuilding In The News
October 18, 2012 Leave a comment
It’s been a while since I wrote a blog about the home building and residential real estate. It has been three months since I even mentioned the industry in this blog and over seven months since I talked about the economic conditions of the market, locally or nationally.
Although it has been some time, I have not been ignoring the market. I have recently had discussion with those employed by builders, big and small, as well as a investor interested in a local large project. Also, over the past 10 days, I have seen a number of articles and news stories about the industry. So, I figured I let you all know about some of the news and provide an overview.
From the macro-economic level, Consumer Sentiment in U.S. rose to pre-recession high. The Thomson Reuters/University of Michigan preliminary October consumer sentiment index increased nearly five points to 83.1, the highest level since September 2007. This was a good sign since projections were expecting a slight decrease. Reports show that the index averaged 64.2 during the last recession and 89 in the five years leading up to the 18-month economic slump that began in December 2007.
Also, Builder Magazine reported on the RealtyTrac study that foreclosure activities were at a Five-year low in September. According to Daren Blomquist, vice president with RealtyTrac, he stated that “We’re passed the point where foreclosures are driving the housing market.” That is good news for buyers and sellers.
“There’s a [housing] recovery,” according to Curt Beardsley, vice president of Realtor.com. In a telephone interview, he continues to say that “Our market times are low and there’s actually a compression of inventory.” This is based on Realtor.com data that the number of homes listed for sale in the U.S. fell 18% last month from a year earlier, and the time they stayed on the market dropped 11%, signs of a strengthening housing market. In September, there were 1.8 million homes for sale, down from 2.2 million a year earlier and more than 40 percent below the September 2007 peak of 3.1 million, according to the National Association of Realtors’ website. Properties on the market last month had been listed for an average of 95 days, down from 107 days a year earlier.
Lastly, on the national level, Forbes magazine put out the Real Estate Forecast 2013: The Housing Market. The article starts out by saying “The housing market will improve moderately in 2013, but nobody will mistake this for a boom. The gains in activity and prices will be a welcome relief, but will leave many homeowners still underwater.” Yet, the author cautions that looking at the market the same way is a little misleading. It all comes down to access supply, something we have been dealing in some areas since 2006.
Locally in the Triangle, Go Realty Realtor, Kriselie Monserrate turned me onto to all the good news in her blog posting. I will not steal her thunder to much, but everything that you would want to increase is and everything you want to be decreasing does.
Also, WRAL reported that local builders see that the Triangle housing market turning a corner. Homes seem to be selling at a faster pace due to increased traffic at sales centers and models. This has resulted in increased pending sales and . Also, Land that has been held since 2006 and 2007 is starting to see development activity.
Overall, it seems like the residential real estate market is showing signs of life. With all of that, I am hoping that we will continue to see good news about housing.
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “Pensare…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at firstname.lastname@example.org.