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Market Data: Foreclosure isn’t answer to housing crisis Economy: Mortgage rate drops for the New Year Financing: Washington communities weigh sales tax to fix default Green Building: Green building products advance Land Use / Planning: City plans for mixed-use development
Private sector employment rises by 325,000 jobs in December Private-sector employment increased by 325,000 from November to December on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The ADP National Employment Report, created by Automatic Data Processing, Inc. (ADP®), in partnership with Macroeconomic Advisers LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month. The estimated gain in employment from October to November was revised down slightly to 204,000 from the initially reported 206,000.
December job cuts lowest since June Planned job cuts announced by U.S. employers declined in December to 41,785, the lowest monthly total since June, according to the latest report on downsizing activity from global outplacement firm Challenger, Gray & Christmas, Inc. The December total was down 1.6 percent from 42,474 job cuts in November. Last month was up 31 percent from December 2010, when employers announced just 32,004 job cuts, which still stands as the lowest monthly total since 17,241 job cuts were recorded in June 2000. Initial unemployment claims fall in final week of 2011 In the week ending December 31, the advance figure for seasonally adjusted initial claims was 372,000, a decrease of 15,000 from the previous week's revised figure of 387,000. The 4-week moving average was 373,250, a decrease of 3,250 from the previous week's revised average of 376,500. The advance number for seasonally adjusted insured unemployment during the week ending December 24, was 3,595,000, a decrease of 22,000 from the preceding week's revised level of 3,617,000. The 4-week moving average was 3,601,750, a decrease of 1,000 from the preceding week's revised average of 3,602,750. Non-manufacturing employment rises for 25th consecutive month in December Economic activity in the non-manufacturing sector grew in December for the 25th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®. The Non-Manufacturing Business Activity Index registered 56.2 percent, which is the same reading as reported in November, reflecting growth for the 29th consecutive month. The New Orders Index increased by 0.2 percentage point to 53.2 percent. The Employment Index increased 0.5 percentage point to 49.4 percent, indicating contraction in employment for the third time in the last four months. The Prices Index decreased 1.3 percentage points to 61.2 percent, indicating prices increased at a slower rate in December when compared to November. According to the NMI, 11 non-manufacturing industries reported growth in December. Respondents' comments are mixed and vary by industry and company. Economic growth continues to be slowed by the lag in employment. Factory orders rise by 1.8 percent in November New orders for manufactured goods in November, up following two consecutive monthly decreases, increased $8.2 billion or 1.8 percent to $459.2 billion, the U.S. Census Bureau reported. This followed a 0.2 percent October decrease. Excluding transportation, new orders increased 0.3 percent. Shipments, up six consecutive months, increased $0.1 billion to $455.0 billion. This followed a 0.5 percent October increase. Inventories, up twenty five of the last twenty six months, increased $2.8 billion or 0.5 percent to $609.8 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.9 percent October increase. The inventories-to-shipments ratio was 1.34, up from 1.33 in October. Although holiday mortgage applications dip from previous week, overall volume was up by 39 percent versus 2010 Mortgage applications for the week ending December 30, 2011 decreased 3.7 percent from the week ending December 16, 2011 (two weeks prior), according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. The results include adjustments to account for the Christmas and New Year's Day holidays. The Refinance Index decreased 1.9 percent compared to the week ending December 16, 2011. The seasonally adjusted Purchase Index decreased 9.7 percent compared with levels reported two weeks ago. The Market Composite Index, a measure of total mortgage loan application volume was 39 percent higher in the last two weeks of 2011 than in the last two weeks of 2010, on a seasonally adjusted basis. 
The MetroIntelligence Economic Update is provided to BuilderBytes by MetroIntelligence Real Estate & Economic Advisors.
Foreclosure isn’t answer to housing crisis 
The Huffington PostFederal Reserve Chairman Ben Bernanke sent a Federal Reserve paper to the leaders of the House of Representatives' Committee on Financial Services arguing that relying heavily on foreclosures to deal with mortgage borrowers that can't meet their obligations is "costly and inefficient" for the housing market because they can lead to deteriorating homes and weigh on the property values in the surrounding community. Instead, the paper encourages lenders to "aggressively" pursue loan modifications and for servicers to be given more incentives to seek alternatives to foreclosure. Foreclosures "can result in 'deadweight losses,' or costs that do not benefit anyone, including the neglect and deterioration of properties that often sit vacant for months (or even years) and the associated negative effects on neighborhoods," the paper said. http://www.huffingtonpost.com/2012/01/04/foreclosure-federal-reserve_n_1184369.html Pennsylvania home sales see double-digit increase PRNewswire Residential homes placed under agreement in Southwestern Pennsylvania increased 16 percent in December 2011 versus December 2010 (2,211 homes versus 1,906), according to the December real estate report from West Penn Multi-List, Inc. "We're thrilled to start the New Year with another double-digit increase in residential home sales," said Ron Croushore, current president of the West Penn Multi-List, Inc., and president/owner of Prudential Preferred Realty. "The positive sales trend continues across all regions of Southwestern Pennsylvania. Continued low interest rates, increased activity in our region's energy sector and unseasonably warm temperatures were all contributing factors to this positive year-end trend." Rents and incomes to grow together 
The Wall Street JournalDemand is growing and supply of new rentals continues to lag. Research from the real-estate forecasting firm Property & Portfolio Research, said median household income and average rent over the next five years will grow at similar rates. Nationally, PPR projects growth of 16.1 percent for median incomes between now and 2016, versus 15.6 percent for rents. (The data are from 54 major markets tracked by PPR.) But conditions differ from market to market, depending on the level of household formation and the pace of income growth. Conditions in places such as Raleigh, NC, could spur landlords to raise rents at a higher rate in coming years. By contrast, new supply and prior rent growth in Washington, D.C. will likely moderate rental growth there, according to PPR. US apartment vacancies decline to a decade low Bloomberg U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year, Reis Inc. (REIS) said. The vacancy rate fell to 5.2 percent, the lowest since the end of 2001. It was 5.6 percent in the previous three months and 6.6 percent a year earlier. The average monthly effective rent, or what tenants paid after landlord giveaways, climbed 2.3 percent from a year earlier to $1,009, Reis said. Rising foreclosures and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years. The vacancy rate has fallen for seven straight quarters from a three-decade high of 8 percent at the end of 2009, according to Reis.
Mortgage rate drops for the New Year 
The Wall Street JournalReal-estate website Zillow, Inc., said its real-time rate on 30-year fixed mortgages fell again in the last week to its lowest level in years. Zillow said the 30-year fixed mortgage rate on its Mortgage Marketplace is at 3.73 percent, down from 3.81 percent a week earlier. The company said the rate dropped to 3.68 percent on Saturday and then held between 3.74 percent and 3.79 percent until it fell to the current rate. The company said the rate hit its lowest level since the Zillow Mortgage Marketplace was launched in 2008. The previous low for 30-year fixed mortgages was 3.74 percent on Sept. 22.
Washington communities weigh sales tax to fix default Bloomberg Nine municipalities in central Washington are considering raising sales taxes to bail out a regional arena that defaulted on $41.8 million in debt, which the state treasurer had warned may taint other issuers. Leaders of the two counties, six cities and town that make up the Greater Wenatchee Regional Events Center Public Facilities District are trying to organize an April 17 election to raise sales taxes by 0.2 percentage points, said Frank Kuntz, the Wenatchee mayor. Representatives weighed three proposals that all envision a vote by the public on a tax increase, Kuntz said. The district defaulted Dec. 1 on bond-anticipation notes sold in 2008 to build a 4,300-seat arena in Wenatchee, a city of 32,000 on the eastern flank of the Cascade Mountains.
Green building products advance 
Market WatchIndicators of what's important to homebuyers and building owners have emerged in the post-recession residential and light commercial real estate market. Higher-performing homes and buildings are the new norm, involving energy- efficiency, durability, low maintenance and curb appeal. One telling aspect is the influence of green building economic benefits. According to NAHB Remodelers, 72 percent of consumers said energy-efficient home features would influence a buying decision; 61 percent said they would spend more than $5,000 upfront to save on utility costs. More builders are marketing sustainability's value to active buyers, who according to the National Association of Realtors, plan to buy a home within three years.
City plans for mixed-use development in Colony Park KUT Austin city planners are hoping to attract a major grocer to a part of East Austin; an area doesn’t have many large supermarkets. The city announced a $3 million dollar grant from the U.S. Housing and Urban Development to plan a mixed-used development on 208 acres of publicly-owned land in the Colony Park neighborhood. The HUD’s grant came from the Office of Sustainable Housing Communities to help improve economic development in this part of East Austin by building job centers, retail and connecting housing and schools with transportation. The homes in Colony Park form a horseshoe around the brush land tapped for the development. The City of Austin bought the land 10 years ago.
Construction begins on The Terraces at Bonita Springs PRNewswire Lend Lease has been selected by SantaFe Senior Living, a SantaFe HealthCare company, to provide construction management services for The Terraces at Bonita Springs, a retirement community in Bonita Springs, Fla. Greystone Communities was selected as the development consultant to SantaFe. Lend Lease began construction on the project Nov. 4, 2011. "The Terraces", a 383,000 square-foot continuing care retirement community (CCRC), sits on a 20-acre green field site. The community is sponsored by SantaFe Senior Living and is comprised of maintenance-free independent living in 144 one-, two- and three-bedroom apartment homes. It will also provide lifetime access to on-site health care, including 48 assisted living, 40 skilled nursing and 18 dedicated memory support residences.
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