ANNUAL STARTS UP 38%, CLOSINGS UP 29%—- I’ll Take It!

Posted in Charlotte Market | Posted on 02-21-2014 | Written by Metrostudy News

(Charlotte, NC – February 21, 2014) Charlotte’s new housing market will continue to experience moderate growth in 2014 but there will be some bumps in the road to be mindful of, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

For the fourth quarter ending December 2013, Charlotte’s quarterly starts for all product types were 2,068, down from last quarter’s 2,891. Quarterly starts are historically lower in the fourth quarter. The 4Q13 starts were 23.5% higher than the 1,675 starts from a year ago in 4Q12. Charlotte’s annualized starts (rolling four quarters) for 2013 increased to 9,194 a 38.7% increase over 2012. 4Q13 Closings totaled 2,219 units, down 440 from last quarter’s closings. New Home Closings are being affected by low finished inventory numbers—‘You can’t close them if they’re not finished’. Compared to one year ago, Charlotte’s 4Q13 closings increased by 28.7%. The 8,465 homes closed in 2013 for all product types represented a 29.1% increase over 2012.

Total Inventory of new homes (detached, town homes, and condos) in all stages of construction (Model Homes + Finished Vacant + Under Construction) decreased to 4,457 in 4Q13 from last quarter’s 4,608. Total Inventory fell to a 6.3-month supply, the lowest in five years. Simply said, inventory months of supply will fall when we close more than we start. South Mecklenburg had the lowest total inventory at a 5.1-month supply. A 7-8 month supply of inventory is considered to be in equilibrium.

“When viewed relative to Annual Closings, the 1,190 units of Finished Vacant Inventory for all product types, was at a 1.6-month supply. This was unchanged from last quarter and remains the lowest ever recorded in Charlotte.. Completing the almost 3,000 under construction homes will be high priority in first quarter, but challenging due to winter conditions when construction schedules are typically longer,” said Bill Miley, Regional Director of Metrostudy’s Charlotte market.

The total number of Vacant Developed Lots in the market at the end of 4Q13 was 28,322. Relative to starts, this represented a 37.0-month supply, a huge and needed absorption from the 82.2-month supply just two years ago. 2,068 Vacant Lots were consumed in starts while 1,860 new lots were delivered. Union County and North Mecklenburg showed the least supply of vacant lots at 20.0 and 25.1 months respectively. Equilibrium supply levels are typically 24-30 months. “As starts continue to increase, Vacant Developed Lots are being absorbed via starts faster than we put new ones on the ground in many locations that are already experiencing lot shortages.” said Miley.

Future lot numbers have decreased slightly over the past two years, primarily due to the expiration of permits. These paper (approved-not developed) lots in the process throughout the Charlotte market at the end of 2013 represent a 68 month supply. “Many of these properties are in locations that were just beginning to experience growth in 2007.. They are simply too far out but may become the only alternative for buyers and builders seeking affordable opportunities. Consumers are now facing the realization that new homes will cost much more on closer in lots not yet developed. Combined with higher labor, development and material costs the Sticker Shock will be real,” said Miley.

About Metrostudy

Metrostudy is the leading provider of primary and secondary market information to the housing and related industries nationwide. Metrostudy provides research, data, analytics and consulting services to help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. For more information, visit www.metrostudy.com

About Hanley Wood

Hanley Wood, LLC is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analytics-driven construction market database, the company produces powerful market data and insights; award-winning publications, newsletters and websites; marquee trade shows and executive events; and strategic marketing solutions. To learn more, visit hanleywood.com.

The Charlotte housing market experienced a strong third quarter

Posted in Charlotte Market | Posted on 10-29-2013 | Written by Metrostudy News

(Charlotte, NC – October 29, 2013) Third quarter new housing data for Charlotte could not have been better. Most builders reported the recent uptick in interest rates had little negative effect on home sales, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

For the third quarter ending September 2013, Charlotte’s quarterly starts for all product types were 2,893, a substantial increase over last quarter’s 2,262. 3Q13 starts were 51.3% higher than the 1,912 quarterly starts from a year ago in 3Q12.  Third quarter Closings totaled 2,652 new homes, 768 more than last quarter’s closings. Compared to one year ago, Charlotte’s 3Q13 closings increased by a dramatic 55.1%.  “Our projected 2013 year end growth of new home starts appears to have been too conservative. Expectations are now that we will have a 30 to 40% increase in starts. Closings are expected to be up 25% over last year,” said Bill Miley, Regional Director of Metrostudy’s Charlotte market.

Total inventory of homes in all stages of construction (Model Homes + Finished Vacant + Under Construction) rose in the third quarter to 4,611 homes representing a 6.9-month supply. Housing Inventory months of supply decreased due to Charlotte’s strong quarterly closings even though total inventory increased. A 6-8 month supply of inventory is considered to be in equilibrium.  The Finished Vacant Inventory supply has dropped to a low 1.6 months.  We closed more homes than we were able to complete.

The total number of Vacant Developed Lots in the market at the end of 3Q13 continued to drop, now at 28,914. 2,893 lots were absorbed via new starts in the third quarter while only 1,900 new developed lots were added to our supply. Relative to lot absorption, the 28,914 Vacant Developed Lots in Charlotte represent a 39.4 month supply, having dropped from the 60-month supply at the end of last year. While still above the equilibrium threshold of a 24-28 month supply, there is a severe shortage of vacant lots in the closer in, more desirable locations.

“Rising home prices for new construction is guaranteed. The forces of supply and demand are real, however increasing labor costs, rising sticks and bricks cost, material shortages are also real. Let’s not forget that Vacant Developed Lot prices, development costs and vacant land are continuing to increase home costs constantly nibbling away at margins,” said Miley.

“Builders, lenders and developers must remember the ‘land lessons’ learned six to eight years ago. We need

lots, bellowed the builders. Developers responded by paying too much and going too far out. We were all guilty

of the ‘if you build it, they will come’ mentality. Builders bought them. Developers paid more and went farther

out until you had to pack a box lunch to get there. Then 2008 came. The rest is a painful history lesson.

Well, it is now 4Q13 and builders everywhere are saying; we need lots,” said Miley.

For information contact:

Bill Miley @ 704.650.7584

email bmiley@metrostudy.com

About Metrostudy

Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide.  Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day.  www.metrostudy.com.

About Hanley Wood

Hanley Wood, LLC is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analytics-driven construction market database, the company produces powerful market data and insights; award-winning publications, newsletters and websites; marquee trade shows and executive events; and strategic marketing solutions. To learn more, visit hanleywood.com.

The Charlotte housing market experienced a strong third quarter

Posted in Charlotte Market | Posted on 10-29-2013 | Written by Metrostudy News

(Charlotte, NC – October 29, 2013) Third quarter new housing data for Charlotte could not have been better. Most builders reported the recent uptick in interest rates had little negative effect on home sales, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

For the third quarter ending September 2013, Charlotte’s quarterly starts for all product types were 2,893, a substantial increase over last quarter’s 2,262. 3Q13 starts were 51.3% higher than the 1,912 quarterly starts from a year ago in 3Q12.  Third quarter Closings totaled 2,652 new homes, 768 more than last quarter’s closings. Compared to one year ago, Charlotte’s 3Q13 closings increased by a dramatic 55.1%.  “Our projected 2013 year end growth of new home starts appears to have been too conservative. Expectations are now that we will have a 30 to 40% increase in starts. Closings are expected to be up 25% over last year,” said Bill Miley, Regional Director of Metrostudy’s Charlotte market.

Total inventory of homes in all stages of construction (Model Homes + Finished Vacant + Under Construction) rose in the third quarter to 4,611 homes representing a 6.9-month supply. Housing Inventory months of supply decreased due to Charlotte’s strong quarterly closings even though total inventory increased. A 6-8 month supply of inventory is considered to be in equilibrium.  The Finished Vacant Inventory supply has dropped to a low 1.6 months.  We closed more homes than we were able to complete.

The total number of Vacant Developed Lots in the market at the end of 3Q13 continued to drop, now at 28,914. 2,893 lots were absorbed via new starts in the third quarter while only 1,900 new developed lots were added to our supply. Relative to lot absorption, the 28,914 Vacant Developed Lots in Charlotte represent a 39.4 month supply, having dropped from the 60-month supply at the end of last year. While still above the equilibrium threshold of a 24-28 month supply, there is a severe shortage of vacant lots in the closer in, more desirable locations.

“Rising home prices for new construction is guaranteed. The forces of supply and demand are real, however increasing labor costs, rising sticks and bricks cost, material shortages are also real. Let’s not forget that Vacant Developed Lot prices, development costs and vacant land are continuing to increase home costs constantly nibbling away at margins,” said Miley.

“Builders, lenders and developers must remember the ‘land lessons’ learned six to eight years ago. We need lots, bellowed the builders. Developers responded by paying too much and going too far out. We were all guilty of the ‘if you build it, they will come’ mentality. Builders bought them. Developers paid more and went farther out until you had to pack a box lunch to get there. Then 2008 came. The rest is a painful history lesson. Well, it is now 4Q13 and builders everywhere are saying; we need lots,” said Miley.

For information contact:
Bill Miley @ 704.650.7584
email bmiley@metrostudy.com

About Metrostudy

Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide.  Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day.  www.metrostudy.com

About Hanley Wood

Hanley Wood, LLC is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analytics-driven construction market database, the company produces powerful market data and insights; award-winning publications, newsletters and websites; marquee trade shows and executive events; and strategic marketing solutions. To learn more, visit hanleywood.com.

The Charlotte housing market shows slow steady growth in the second quarter

Posted in Charlotte Market | Posted on 08-16-2013 | Written by Metrostudy News

(Charlotte, NC – August 16, 2013) Charlotte’s housing market is slowly recovering, although the unemployment numbers keep rising, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Nationally, July’s unemployment rate decreased to 7.4%. Private sector job gains support the outlook for a continued moderate, but subpar, growth path for this year. Real GDP is expected to rise just 1.7 percent in 2013 and 2.4 percent in 2014. “It is most likely that the sequestration process will create a much larger drag on our economy, later this year. The good news is Consumer confidence rose 7.1 points to 81.4 in June,” said Bill Miley, Regional Director of Metrostudy’s Charlotte Market, the bad news is the Charlotte MSA’s unemployment rate increased in June to 9.3% and job growth has remained flat for the year at just under 21,000.

For the second quarter ending June 2013, Charlotte’s quarterly starts for all product types were 2,260, a substantial increase over last quarter’s 1,956. 2Q13 starts were 36.1% higher than the 1,660 quarterly starts from a year ago in 2Q12. Charlotte’s annualized starts (rolling four quarters) as of second quarter rose to 7,812, higher than last quarter’s 7,200 annual starts. Annual starts have increased for seven consecutive quarters. 2Q13 Closings totaled 1,895 new homes, 184 more than last quarter’s. Compared to one year ago, Charlotte’s 2Q13 closings increased by 11.3%. The 7,056 annualized 2Q13 closings for all product types rose from last quarter’s year over year total of 6,864. Annual closings have gradually increased for six consecutive quarters. No doubt total closings have been held down due to the lack of finished inventory available to close. “Our original year end growth projection of 12 to 16% for 2013 appears low relative to starts for the first half of 2013. Our expectations are now for a 25-30% increase in starts with closings up 15-20% over last year,” said Miley.

Total inventory of homes in all stages of construction (Model Homes + Finished Vacant + Under Construction) rose in the second quarter to 4,382, representing a 7.5 -month supply. Housing Inventory supply increased due to Charlotte’s strong quarterly starts. A 6-8 month supply of inventory is considered to be in equilibrium. South Carolina (York and Lancaster) had the lowest inventory supply at 6.5 months. When viewed relative to Annual Closings, the 1,251 units of Finished Vacant Inventory for all product types represent a 2.1-month supply, down from 2.3 months’ that existed at the end of 1Q13. More new homes were closed than new ones completed in 2Q13, thus lowering the finished Vacant Inventory months of supply.

The 30,273 Vacant Developed Lots in the market at the end of 2Q13 continued its downward trend. There were 2,260 lots absorbed via new starts in 2Q13 while only 647 new developed lots added to our supply. Relative to lot absorption, the 30,273 vacant developed lots in Charlotte represent a 46.5 month supply, decreasing from the 60- month supply at the end of last year. Union County and North Mecklenburg had the lowest lot supplies at 31.2 and 31.6 months respectively and are close to equilibrium levels (25-30 months).

“At the risk of sounding like a broken record, the key to a strong Charlotte new housing recovery is quite simply more jobs. Our unemployment rate continues to rise as more and more people return to the labor force in search of employment. Despite the weak economic numbers, the Charlotte MSA ranks ninth in the country in single-family permits. This is a strong future indicator of continued new housing starts activity,” said Miley.

For information contact:
Bill Miley @ 704.650.7584
email bmiley@metrostudy.com

About Metrostudy

Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide.  Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day.  www.metrostudy.com

About Hanley Wood

Hanley Wood, LLC is the premier media, event, information and strategic marketing services company serving the residential, commercial design and construction industries. Through its operating platforms, the company produces award-winning digital and print publications, Newsletters, websites, marquee trade shows and events, Market Intelligence data and strategic marketing solutions. The company also is North America’s leading publisher of home plans.

The Charlotte housing market continues to improve despite low employment numbers

Posted in Charlotte Market | Posted on 05-15-2013 | Written by Metrostudy News

(Charlotte, NC – May 9, 2013) Same song, second verse, “All we need are jobs”. Charlotte’s unemployment rate dropped in March to 8.8%, but for the wrong reasons, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

The Charlotte MSA’s annual job growth numbers continues to disappoint. It has dropped from 28,900 in November to 19,000 in March.  Industry sectors showing the greatest Annual job growth are Leisure and hospitality at 7,100 followed by Professional and Business Services with 4,400. The Charlotte MSA’s current unemployment rate continues to decrease, now  at 8.8%, but it’s still significantly higher than the national rate.  “It’s the mysterious  civilian labor force black hole that continues to swallow people the government says  have quit looking for jobs, thus lowering the employment rate”  said Bill Miley, Regional Director of Metrostudy’s Charlotte Market.

For the first quarter ending March 2013, Charlotte’s quarterly starts for all product types were 1,933, up from last quarter’s 1,674. The 1Q13 starts were 40.5% higher than the 1,376 starts from a year ago in 1Q12. Charlotte’s annualized starts as of first quarter increased to 7,166, a 28.5% increase over annual starts from one year ago. 1Q13 Closings totaled 1,715 units unchanged from fourth quarter which is traditionally one of our strongest closing quarters. “Closings continue to be constrained by low supplies of finished inventory for all product types which decreased from a 2.5 month supply in fourth quarter to a 2.2 month supply after 1Q13,”said Miley.  Charlotte’s first quarter closings increased by 20.0% compared to 1Q12. The 6,850 homes closed in the past four quarters represented a 13.6% increase over 1Q12’s annualized closings.

Total Inventory of new homes in all stages of construction increased to 3,988 in 1Q13 from last quarter’s 3,770 due to strong quarterly starts. Total Inventory rose to a 7.0 month supply from last quarter’s 6.9. Under construction homes increased to a 4.1 month supply, finished vacant fell to 2.2 months and model homes remained at 0.6. The South Carolina market consisting of York and Lancaster counties had the lowest inventory supply at 5.8 months. A 7-8 month supply of inventory is considered to be in equilibrium. When viewed relative to Annual Closings, the 1,278 units of finished vacant inventory for all product types, decreased to a 2.2-month supply from 4Q’s 2.5 MOS. “Charlotte continues to close more homes each quarter than new ones are completed. This lowers the monthly supply and is the catalyst for increased quarterly starts,” said Miley.

The total number of vacant developed Lots in the market at quarter’s end was 31,574. Relative to starts, this represented a 52.9 month supply, rapidly dropping from the 59.1 month supply at the end of 4Q12. We should be approaching a 40 month supply by year’s end and back within equilibrium by the middle of next year. 1,933 vacant lots were absorbed in new starts while 954 new lots were delivered. A 26-30 month supply is considered to be within equilibrium. “As annual starts continue to increase, vacant lots will disappear significantly faster than newly developed lots are delivered. This is not expected to change in the foreseeable future.  “Don’t be misled, said Miley, vacant lots in the best locations are already owned or under contract to the major builders.

“Despite low job growth, new housing activity is heating up in Charlotte. Annual single family permit activity is up 42.7% and actual physical starts are up 28.5%, which means we will continue to see more new housing starts in the months ahead,” said Miley.

For information contact:
Bill Miley @ 704.650.7584
email bmiley@metrostudy.com

About Metrostudy

Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide.  Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day.  www.metrostudy.com

About Hanley Wood

Hanley Wood, LLC is the premier media, event, information and strategic marketing services company serving the residential, commercial design and construction industries. Through its operating platforms, the company produces award-winning digital and print publications, Newsletters, websites, marquee trade shows and events, Market Intelligence data and strategic marketing solutions. The company also is North America’s leading publisher of home plans.

03/07/13: Metrostudy – Realtor® EXPO Charlotte

Posted in Charlotte Market, Events | Posted on 02-12-2013 | Written by Bill Miley

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Realtor® EXPO will present a three person panel of experts discussing  information about the overall health of the Charlotte  housing market.

Thursday February 21, 2013

WHERE Blake Hotel - 555 S. McDowell St., Charlotte, NC 28204

AGENDA 8:30 a.m.: Registration - 9 a.m.: Trade show opens and 10-11 a.m.: Batter Up 2013: Spring Housing Market Panel

SPEAKERS Bill Miley – Metrostudy’s Regional Director of  the Charlotte Market

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Metrostudy: Charlotte’s housing market improves in 4Q12

Posted in Charlotte Market | Posted on 02-04-2013 | Written by Metrostudy News

(Charlotte, NC– February 4, 2012) The improvement in housing may be the most positive national news for the year. Permits are up across the country and Charlotte has many new apartments and homes under construction according to recent information from Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

North Carolina’s November unemployment rate at 9.1% was fifth highest in the country while the Charlotte MSA was not much better at 9.0%. The good news is that Charlotte saw a significant increase in November job creation at 22,900, the largest monthly increase in more than a year. “With North Carolina’s new Republican Governor in office there is optimism that job growth and our high unemployment rate will become priority number one,” said Bill Miley, director of Metrostudy’s Charlotte division.

Ending 4Q12, Charlotte’s quarterly starts for all product types were 1,647, down from last quarter’s 1,910. The 4Q12 starts were 23.1% higher than the 1,338 starts from a year ago in 4Q11. Charlotte’s annualized starts for 2012 increased to 6,585, a 27.4% increase over 2011. 4Q12 closings totaled 1,699 units, down 20 from last quarter’s closings. “Closings fell due to our low total units of finished detached inventory, currently at a 2.0 month supply. You can’t close them if they’re not finished,” said Miley.  Compared to one year ago, Charlotte’s 4Q12 closings increased by 20.6%. The 6,515 homes closed in 2012 for all product types represented a 14.4% increase over 2011.

Total inventory of new homes in all stages of construction decreased to 3,762 in 4Q12 from last quarter’s 3,814. Total inventory (attached and detached new homes) fell from a 7.3 to a 6.9 mos (months of supply), the lowest in four years. Under construction homes are at a 3.8 mos while finished vacant are at a 2.5 month supply. A 7-8 month supply of inventory is considered to be in equilibrium. The total number of vacant developed lots in the market at the end of 4Q12 was 32,642. Relative to starts, this represented a 59.5 mos, dropping from the 64.0-month supply in 3Q12. 1,640 vacant lots were absorbed in starts while 880 new lots were delivered. “As our annual starts continue to grow, Charlotte’s vacant lot supply will be consumed, far out numbering new developed lots that will be added,” said Miley.

“Let’s hope the increase in new jobs seen locally continues and does not reflect a seasonal increase. Charlotte’s steady improvement in both starts and closings is expected to increase in 2013. Many builders have reported robust sales in both November and December. Strong presales will help give builders increased confidence in our local economy as well as many of our banks. The Charlotte MSA currently ranks ninth in the country in single family permits, further testimony to the desirability, appeal and strength of Charlotte NC,” said Miley.

For information contact:
Bill Miley @ 704.650.7584
email: bmiley@metrostudy.com

About Metrostudy

Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

02/04/13: Metrostudy Charlotte 4Q12 Executive Client Briefing

Posted in Charlotte Market, Events | Posted on 01-25-2013 | Written by Bill Miley

NEW LOGO 2013

Metrostudy’s 4Q12 Client Briefing

QUEENS UNIVERSITY SPORTS COMPLEX and CONFERENCE CENTER

At MARION DIEHL PARK

2229 Tyvola Road, Charlotte, NC 28210

Continental Breakfast and Networking begins at 8:45 A.M.

Our Conference is from 9:30 A.M. to 11:00 A.M.

This event is limited to subscribers to Metrostudy’s Quarterly Advisory Services. If you are not a current subscriber and you wish to attend the event, please contact Bill Miley at 704-650-7584

Charlotte’s new housing market continues to improve despite slow job growth

Posted in Charlotte Market, In The News | Posted on 10-26-2012 | Written by Metrostudy News

(Charlotte, NC–October 26, 2012) Charlotte’s new housing market continues to show improvement in starts and closings while inventory supplies are becoming low in many areas, according to recent information from Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Nationally there was a huge 873,000 job gain in the household survey for September and the unemployment rate dropped to 7.8% down from 8.1% in August. The unemployment rate has been decreasing for the past three months even though payroll job growth showed only a modest improvement. “This disconnect creates doubt about what the current jobs numbers are saying about the economy,” said Bill Miley, director of Metrostudy’s Charlotte division.

The 3Q12 starts were 28.2% higher than the 1,501 quarterly starts from a year ago in 3Q11. Charlotte’s annualized starts (rolling four quarters) as of 3Q12 increased to 6,289 making six consecutive quarters of increasing annual starts. Annualized Starts peaked in 1Q07 at 24,997. Charlotte’s 3Q12 closings totaled 1,732 units, 30 more than last quarter. “The small quarterly increase in closings was primarily fueled by low finished inventory supplies that were available to close. The 6,275 Annualized 3Q12 closings for all product types increased from last quarter’s year over year total and are 9.2% higher than annual closings recorded one year ago. Annual Closings peaked in 2Q07 at 24,519,” said Miley.

Total inventory of new homes (detached, town homes, and condos) in all stages of construction (Model Homes + Finished Vacant + Under Construction) increased to 3,814 in 3Q12 from last quarter’s 3,621 and increased inventory supply to 7.3-months. “This was expected due to the increase in homes Under Construction and the shrinking Finished Inventory numbers,” said Miley. A 6-8 month supply of inventory is considered to be in equilibrium.

“Despite weak job growth, Charlotte’s housing market shows positive signs of steady slow improvement. Resale closings are up as well as new housing starts and closings. The Charlotte MSA currently ranks tenth in the country in single family permits, further testimony to the desirability, appeal and strength of our local market. 90% of Charlotte’s annual starts are detached housing and inventory supplies are well within equilibrium at 6.7 months. The new housing market will show much stronger growth as more new jobs are created and Charlotte’s 9.7% unemployment rate declines, said Miley.

For information contact:
bill miley @ 704.650.7584
email bmiley@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com

Positive trend in Charlotte’s new housing market continues despite weak job growth

Posted in Charlotte Market, In The News | Posted on 08-07-2012 | Written by Metrostudy News

(Charlotte, NC–August 7, 2012) With some sustained positive economic news at the national and local level, the new housing market would show dramatic improvement, according to recent information from Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

North Carolina’s most recent economic news showed no change in the unemployment rate from April to May, remaining at 9.4% but on the positive side it’s down from 10.4% at year’s end. The Charlotte MSA registered a similar decline falling from 10.4% in December to April’s 9.1%. Unfortunately in May, Charlotte’s unemployment rate climbed to 9.5%. Charlotte’s annual 2012 job growth remains weak at only 7,700 new jobs. “Some good news is the increase in single and multifamily permits month over month for the past year. Metrostudy’s new housing data collected through field research for the second quarter shows positive growth in actual housing starts and closings,” said Bill Miley, director of Metrostudy’s Charlotte division.

The 2Q12 starts were 22.6% higher than the 1,355 quarterly starts from a year ago in 2Q11. Charlotte’s annualized starts (rolling four quarters) as of 2Q12 rose to 5,833, higher than last quarter’s 5,522. Compared to one year ago, Charlotte’s 2Q12 closings increased by 15.1%. The 6,223 annualized 2Q12 closings for all product types rose from last quarter’s year over year total of 6,004.

Total inventory of homes in all stages of construction (Model Homes + Finished Vacant + Under Construction) continued its three year decline to 4,033 homes in 2Q12 representing a 7.8 month supply and is lower than last quarter’s 8.1. Monthly housing inventory decreased due to Charlotte’s strong quarterly closings relative to new starts. A six to eight month supply of inventory is considered to be in equilibrium.

Single Family Detached Homes in Charlotte now account for 90.2% of all new housing starts, up from 75.1% just three years ago in 2Q09. “Lower detached new home sales prices have increased the affordability and desire for detached housing,” said Miley.

The 2,823 detached inventory homes in various stages of construction as of 2Q12 reflect a 6.5-month supply. This is at the short end of equilibrium and points to why the additional new detached starts were needed. There were 1,029 Finished Vacant Detached homes at quarter’s end corresponding to a healthy 2.4-month supply.

“Knock on wood”, is it safe to say that Charlotte has turned the quarter with five consecutive quarters of increased starts and closings? Inventory supplies for both detached housing and townhomes are well within equilibrium. At the risk of sounding like a broken record, the key to a robust Charlotte recovery continues to be job creation. Our unemployment rate remains well above the national rate in large part due to only 7,700 annual jobs being created over the past year, and yet, the Charlotte MSA is #9 in the country in single family permits.” said Miley.

For information contact:
bill miley @ 704.650.7584
email bmiley@metrostudy.com

About Metrostudy

Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.