Market Data:
US housing market reaches turning point
Economy:
Foreclosures decrease to five-year low
Financing:
30-year mortgage rates fall to 3.79 percent
Green Building:
Skyline innovations enters California solar market
Land Use / Planning:
Florida's next up-and-coming frontier
Sellers boosted prices in April
The Wall Street Journal
Median list prices rose by 0.7 percent in April from March to their highest level in nearly one year, even as the number of homes listed for sale stood at levels down nearly 19 percent from a year ago, according to a report released. Compared with a year ago, median asking prices were up in 72 markets, flat in 14 markets, and down in 60 markets. But compared with the prior month, they were down in just five of those markets, according to Realtor.com. Asking prices were up by 25 percent from one year ago in Phoenix, by 15 percent in Miami, and by 10 percent in Washington, D.C. Prices were down by 8 percent in Chicago and Philadelphia. Compared with March, sellers' prices were up by 7.9 percent in Minneapolis, by 4.7 percent in Detroit, and by 4.6 percent in San Francisco.
METROINTELLIGENCE ECONOMIC UPDATE
By Patrick S. Duffy |
April housing starts jump by 29.9 percent over same month of 2011 and 2.6 percent above previous month
Privately-owned housing starts in April were at a seasonally adjusted annual rate of 717,000. This is 2.6 percent above the revised March estimate of 699,000 and is 29.9 percent above the revised April 2011 rate of 552,000. Single-family housing starts in April were at a rate of 492,000; this is 2.3 percent above the revised March figure of 481,000. The April rate for units in buildings with five units or more was 217,000.
April building permits rise by 23.7 percent above same month of 2011 but fall by 7.0 percent from previous month
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 715,000. This is 7.0 percent below the revised March rate of 769,000, but is 23.7 percent above the revised April 2011 estimate of 578,000. Single-family authorizations in April were at a rate of 475,000; this is 1.9 percent above the revised March figure of 466,000. Authorizations of units in buildings with five units or more were at a rate of 217,000 in April.
Industrial production rises by 1.1 percent in April, far above expectations and the biggest jump since December 2010
Industrial production increased 1.1 percent in April. Output is now reported to have fallen 0.6 percent in March and to have moved up 0.4 percent in February; previously, industrial production was estimated to have been unchanged in both months. Manufacturing output increased 0.6 percent in April after having decreased 0.5 percent in March. Excluding motor vehicles and parts, which increased nearly 4 percent, manufacturing output moved up 0.3 percent, and output for all but a few major industries increased. At 97.4 percent of its 2007 average, total industrial production for April was 5.2 percent above its year-earlier level. The rate of capacity utilization for total industry moved up to 79.2 percent, a rate 3.1 percentage points above its level from a year earlier but 1.1 percentage points below its long-run (1972 to 2011) average.
Mortgage applications rise by 9.2 percent in latest survey
Mortgage applications increased 9.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending May 11, 2012. The Refinance Index increased 13.0 percent from the previous week. The seasonally adjusted Purchase Index decreased 2.4 percent from one week earlier. The refinance share of mortgage activity increased to 74.9 percent of total applications from 72.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent from 5.7 percent of total applications from the previous week.
The MetroIntelligence Economic Update is provided to BuilderBytes by
MetroIntelligence Real Estate & Economic Advisors.
US housing market reaches turning point
PRNewswire
Home valuations will start to climb again while adjacent consumer industries will capture significant new growth opportunities in 2012 and beyond as the U.S. housing market finally turns the corner, concludes a major new study released by The Demand Institute. The recovery of the housing market will have far-reaching impacts in the coming years across the United States and international markets as U.S. consumers increase their spending on buying, renovating, furnishing and maintaining their homes. The new report, The Shifting Nature of U.S. Housing Demand, predicts that average home prices will increase by up to 1 percent in the second half of 2012. By 2014, home prices will increase by as much as 2.5 percent. From 2015 to 2017, the study projects annual increases between 3 and 4 percent.
90 percent of condos sold at Water's Edge
PRNewswire
Finishing strong, with just 14 condominium homes remaining for sale at Water's Edge, the luxury tower is quickly nearing a complete sellout. "The remaining homes at Water's Edge are premier residences with luxurious features and resort-style amenities," said Dave Traynor, Smith's sales director for Water's Edge. "A wide variety of homes are still available, including two top-floor penthouses. These extraordinary condominiums offer an opportunity to be combined into one stunning, expansive penthouse with about 6,000 square feet of living space." Amenities at Water's Edge include a fully equipped fitness center, secure gated entry, 24-hour concierge, and two covered parking spaces and an air-conditioned storage space per home. Two- and three-bedroom residences range from 1,331 to 3,400 square feet, with prices ranging from $260,000 to $1.575 million.
Housing less rundown but still a fixer-upper
The Wall Street Journal
Housing has more curb appeal these days. Housing starts increased 2.6 percent in April, to an annual rate of 717,000, a higher-than expected level. Permits fell 7 percent, but the drop was from a three-and-a-half-year high posted in March. All in all, the report supports the idea that housing is no longer the dilapidated wreck it was in past years. The housing report also contained revisions going back to 2010. While the changes for the past two full years were minor, starts in the first quarter were revised up significantly. Homes under construction were also refigured higher, suggesting residential construction contributed more to real gross domestic product growth in the first quarter than the 0.4 percentage point estimated. The nature of new housing will probably involve fewer resources and labor, according to a study.
Innovative homes by Taylor Morrison
Builder & Developer
Implementing a philosophy of "homes inspired by you," Arizona-based home builder, Taylor Morrison, has found success on both the East and West coast. Creating homes that are made with the consumer in mind from design to move-in, Taylor Morrison remains a top contender among the nation's top home builders. The company has been awarded numerous times by numerous homebuilding associations for the quality of craftsmanship of its homes, including J.D. Power and associates, MAME and NAHB's "The Nationals" contest. Though the company is proud to be widely recognized by the industry, it builds houses to improve the lives of its consumer. "We're very proud of the homes that we build. We build them to provide the best possible living experiences for our homebuyers, not to receive awards," explained Sheryl Palmer, president and CEO at Taylor Morrison.
Nationwide affordability reaches new record high
NAHB
Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released. Yet tight lending conditions continue to pose a major obstacle to many prospective homebuyers. The latest HOI data reveal that 77.5 percent of all new and existing homes that were sold in this year's first quarter were affordable to families earning the national median income of $65,000. This beats the previous record set in the final quarter of 2011, when 75.9 percent of homes sold were affordable to median-income earners. The most affordable major housing market in this year's first quarter was Indianapolis-Carmel, Ind.
Foreclosures decrease to five-year low
Bloomberg
Foreclosure filings in the U.S. fell to a five-year low last month as lenders sought to avoid seizing property and a housing recovery showed signs of taking hold. The number of default, auction and seizure notices sent to homeowners in April totaled 188,780, down 14 percent from a year earlier and 5 percent from the previous month, according to RealtyTrac, Inc. It was the lowest tally since July 2007, before the onset of the biggest housing crash in seven decades, according to a report. The "gradually rising foreclosure tide" forecast by RealtyTrac after a February settlement by the nation's biggest mortgage servicers over faulty practices has yet to materialize, limiting the number of properties on the market and propping up prices.
Needy states use cash aid to plug budgets
The New York Times
Hundreds of millions of dollars meant to provide a little relief to the nation's struggling homeowners is being diverted to plug state budget gaps. In a budget proposed, California joined more than a dozen states that want to help close gaping shortfalls using money paid by the nation's biggest banks and earmarked for foreclosure prevention, investigations of financial fraud and blunting the ill effects of the housing crisis. California was awarded more than $400 million from the banks, and Gov. Jerry Brown has proposed using the bulk of that sum to pay the state's debts. The money was part of a national settlement valued at $25 billion and negotiated with five big banks over abuses in their mortgage and foreclosure processes.
US mortgage delinquency rate falls to 2008 levels
Bloomberg
The U.S. mortgage delinquency rate declined in the first quarter to the lowest level since 2008 as an improving job market helped more borrowers pay their bills and tighter lending standards resulted in fewer defaults. The share of home loans at least 30 days late dropped to 7.4 percent from 7.58 percent in the previous three months, according to a report from the Mortgage Bankers Association. The rate peaked at 10.1 percent in the first quarter of 2010 and was last lower in the third quarter of 2008, when it was 6.99 percent. Falling delinquencies may help limit foreclosures and solidify a recovery in the housing market as low interest rates combine with decreased prices to stimulate demand.
30-year mortgage rates fall to 3.79 percent
Bloomberg
Mortgage rates in the U.S. fell to a record for a third straight week, reducing borrowing costs as the housing market improves and home-loan defaults decline. The average rate for a 30-year fixed loan dropped to 3.79 percent in the week from 3.83 percent, Freddie Mac said in a statement. It was the lowest in the mortgage-finance company's data dating to 1971. The average 15-year rate decreased to 3.04 percent, also a record, from 3.05 percent. Record-low mortgage rates, combined with job gains and lower-priced homes, are helping to lift housing demand and stabilize the real estate market. Housing affordability reached a new high in the first quarter and sales of previously owned homes rose 5.3 percent from a year earlier, data from the National Association of Realtors show.
Skyline innovations enters California solar market
PRNewswire
Skyline Innovations, one of the nation's fastest growing commercial solar heating companies, and WGL Holdings, Inc., announced the completion of solar water heating systems for three multifamily buildings in southern California, owned by Williams Holdings, Inc. Skyline provided the solar water heating systems at no upfront cost, and Williams Holdings will receive solar hot water at a 25 percent fixed discount to their utility rate for water heating. The Golden State projects mark Skyline's 31st project for multifamily housing and the expanded availability of its innovative financing solution to businesses and multifamily buildings in California. Skyline Innovations' industry leading $30 million solar heating project financing arrangement with WGL Holdings, Inc., will be used to address the growing market opportunity for solar hot water and customer demand for savings.
Makeover complete at Jim Rouse-developed Harper House
Citybiz Real Estate
Enterprise Homes has re-opened Harper House, a nine-story rental apartment building that received a $21 million total building green makeover. The project was of particular importance to Enterprise, which is celebrating its 30th anniversary this year. Enterprise's founder, Jim Rouse, who also founded the city of Columbia, developed the building in 1971. Harper House is one of the earliest examples of Rouse's vision to bolster the supply of housing for people from all walks of life. "It's a fitting tribute to him and our community that we have completely modernized and expanded this historic property as Enterprise celebrates its 30th anniversary," said Chickie Grayson, president & CEO, Enterprise Homes. During the predevelopment and construction phases, Enterprise made it a priority to ensure that none of the residents would be displaced.
Florida's next up-and-coming frontier
The Wall Street Journal
A parcel of timberland in Florida that is nearly the size of Rhode Island and owned by a who's who of elites from the worlds of business and diplomacy is now slated to be the next frontier in the state's real-estate development. This year, state and local officials approved a master plan for 562,000 acres that span five northwest Florida counties with frontage on the Gulf Coast. It calls for more than 25,000 new homes and more than 10 million square feet of commercial and industrial office space. Howard Leach, the former U.S. ambassador to France, bought the land with Los Angeles investor Robert Day in 1994 from Procter & Gamble Co. The ownership group now also includes former Secretary of State Henry Kissinger and Home Depot co-founder Ken Langone.
Potrero Hill condo building recovers $1.5 million
PRNewswire
A model work-loft condominium building at the 1000 Pennsylvania Avenue has recouped $1.5 million for numerous construction defects: water intrusion through the roof, windows, decks and doors, as well as leaks in the garage walls themselves. Damages of over $95,000 per unit were recovered. The 16-unit residential building in The 1000 Pennsylvania Avenue Homeowners Association is in the neighborhood where Potrero Hill and Dogpatch converge. The settlement was reached in mediation after only two years from the date of the filing of the complaint in Superior Court. The recovery is being funded by insurance companies for the builder, general contractor and subcontractors.
Topsfield takes on tradition
50+ Builder
Located near Boston's North Shore is English Commons at Topsfield - a 55-plus, active-adult community that is appropriately-designed to its location and namesake in a New England Traditional style, and built to Low Impact Development (LID) design standards boasting Energy Star certification. Developed and constructed by Carlton and Alan Berry of C.P. Berry Construction Co., Inc., English Commons at Topsfield upholds the Berry family name and their reputation for quality communities. With a permit process that took two years due to rezoning; and funding that included private equity from partners and construction funding from Salem Five Bank, construction began in January 2010 with infrastructure and roadwork completed by fall 2010.
Senior living that sings sustainable praises
Green Home Builder
Derived from the loosely-translated Italian phrase meaning, "my song," CantaMia -- located within the master plan of Estrella in Goodyear, Ariz. -- is an impressive, active-adult community that gained national notoriety at the recent International Builders' Show in Orlando, Fla. CantaMia made its mark within the 50-plus housing community by earning two, prominent and prestigious awards from the National Association of Home Builders (NAHB) for "Best 'For Sale' Community Over 200 Homes" and the Silver award for "Best Green Community." Not only does CantaMia offer the best in senior living, but it offers its residents the best in healthy living as well by achieving the demanding Environments For Living (EFL) certification.
