(Houston, TX– January 26, 2012) The confidence of the Houston market is beginning to build steam, 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.

Houston’s unemployment rate dropped to 7.6%, a full percentage point less than the 3Q11 reading. Employment also grew by 3.3% annually. “Behind a surging Energy industry, a strong health care sector and recovering manufacturing and retail industries, six of Houston’s 16 employment sectors have added more than 10,000 jobs in the last 12 months,” said David Jarvis, director of Metrostudy’s Houston division.

Houston homebuilders started 18,417 new homes in 2011, a 2% decline from the 2010 total. But the 4,387 homes started in 4Q11 represent a 24% increase from last year’s tax credit-depressed quarterly starts count. 4,892 new homes were closed in 4Q11, 388 more than 4Q10.

At the end of 2011 the Houston new home market held in inventory fewer than 10,000 homes for the first time since 1997. A 10% decline in new home closings in 2011 resulted in the months of supply of new homes to rise to 6.4 months, above last year’s 5.9 months. “Regardless, builders should be forced to start more homes in 2012 in order to keep pace with the growing demand brought on by the health of the Houston economy,” said Jarvis.

“The building blocks for strong economic fundamentals continue to stack up in favor of the Houston market, but the headwinds of 2011 persist as 2012 begins. But based on the job growth of the last 12 months, the tight housing supply and the building confidence of the Houston market should lead to an increase in new home starts through the end of 2012.”

For information contact:
David Jarvis @ 713.622.9909 x 132
email: djarvis@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.

(Houston, TX– November 1, 2011) Houston’s economy recovers further during 3Q11, driven by positive job growth, 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.

At the end of August 2011 the Texas Workforce Commission reported that the Houston job market added 65,600 jobs over the previous twelve months. As a result, Houston regained 80 percent of the jobs it shed during the recession that ended, locally, only 20 months ago. “Over the next 5 years Houston is expected to add roughly 150,000 new residents each year. Therefore, new development activity in 2011 and going forward will be driven by real demand created by strong job growth and a truly recovering local economy,” said David Jarvis, director of Metrostudy’s Houston division.

During 3Q11, 4,947 new homes were started, 20% more than in 3Q10. 5,363 new homes were closed during 3Q11, only 1% down from 3Q10.

The 4,251 finished vacant homes counted during the 3Q11 survey represent a 2.8 month supply. This is down 30% over the past two years. Units currently under construction represent the largest share of new home inventory. The 5,207 homes currently under construction are the most since the expiration of the federal tax credit programs in
2010. “In 3Q11, there are more homes under construction than there are finished and vacant, which points to a stabilizing of new home inventory,” said Jarvis.

“Both builders and lenders have cut down on speculative building programs in the face of a tightened lending environment. The strong growth in sales, year over year, experienced during the summer months is the driver behind the increase in homes under construction,” said Jarvis.

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@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.

(Houston, TX– August 1, 2011) Houston’s economy continues to show signs of recovery, 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.

Houston’s unemployment rate currently rests at 8.2%, almost a full percentage point lower than then nation’s 9.2%. As of May, Houston has added back 81,600 of the 110,000 jobs it lost during the recession.

During 2Q11, 5142 new homes were started, 13% less than in 2010. 4,593 new homes were closed 2Q11. The annual pace of closings stood at 18,211 at the end of 2Q11, and annual starts stood at 16,605. Annual closings have outpaced starts since the first quarter of 2007, as the market absorbed the excess inventory since the downturn began. “As new home demand stabilizes, Metrostudy expects the gap between starts and closings to narrow going forward,” said David Jarvis, director of Metrostudy’s Houston division.

The 4,799 finished vacant homes counted during the 2Q11 survey represent a 16% decline from a year ago. “The number of finished vacant homes in the market continues to decline, pointing to the trend that builders are eliminating pent up inventory and restricting the number of spec homes they’re carrying each quarter,” said Jarvis.

“Typically when the number of new homes under construction is greater than or equal to those units sitting finished and vacant the market is considered to be level or improving and this is beginning to be the case for the new home market in Houston,” said Jarvis. “Inventories are at pre-housing bubble lows and demand is present though qualifying is a constant challenge.”

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@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.

(Houston, TX– May 1, 2011) Houston’s economy is showing signs of recovery, 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.

Houston has gained 50,700 jobs year over year as of February 2011, which means 48% of the workforce shed during the recession has been gained back. “Job growth does more than increase the workforce,” said David Jarvis, director of Metrostudy’s Houston division. “These gains have potential to boost consumer confidence so they can plan long term goals.”

Resale homes recorded 10,670 closings during 1Q11, nearly matching the number experienced during 1Q10 despite the absence of the Tax Credit this year. Resale inventory has risen to 7.6 months of supply, while 6 represents equilibrium.

Houston started 3,733 homes during 1Q11, compared to 5,232 during 1Q10 with the Tax Credit. Builders closed 3,665 homes during 1Q11. Annual closings have outpaced starts since 1Q07, and so the market has absorbed the inventory built up during the run up in housing. “As new home demand stabilizes, Metrostudy expects the gap between starts and closings to narrow going forward,” said Jarvis.

For the last 17 quarters new home starts have outpaced new home closings, leading to a tight new home inventory in the Houston Market. Houston currently has a 6.3 month supply of new homes, which is slightly above the 6 months Metrostudy considers equilibrium. The number of finished vacant homes in the market has declined the last 3 quarters and now rests at 5,220 units, the lowest count in more than 8 years. The months of supply for finished vacant units rests at 3.2, slightly above the 3 months Metrostudy considers equilibrium.

“Houston’s economic drivers are strong and will continue to gain strength through the final 9 months of 2011,” said Jarvis. “Continued job growth and home price stabilization will build up consumer confidence as the buying public returns to viewing home buying as a long term investment.”

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@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.

(Houston, TX– February 1, 2011) Houston’s economy is showing signs of recovery, albeit small, 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 Houston economy ended the year with over 13,000 jobs more than it began the year, a .5% increase after a loss of 102,800 jobs in 2009. “Job growth is considered essential for strong housing demand on a regional basis and could be the wind at Houston’s back,” said David Jarvis, director of Metrostudy’s Houston division.

Overall, Metrostudy recorded 18,752 home starts in 2010, a 1.1% increase over 2009. This is the first increase in new home activity after 3 straight years of decline. Houston closed 20,579 homes in 2010, a 10% decline from 2009. Closings have outpaced starts since the first quarter of 2007, so the market has absorbed inventory. “As new home demand stabilizes, we expect the gap between starts and closings to narrow going forward,” said Jarvis.

Total new home inventory stands at a 5.9 month supply, below the 6 that Metrostudy considers equilibrium for Houston. Finished vacant inventory has dropped to 5,320 units, a 3.1 month supply.

“The Houston market continues to face fewer market obstacles than most U.S. markets,” said Jarvis. “Texas’s pro-growth policies and business friendly environment will continue to benefit local housing markets and allow for 2011 to show moderate growth.”

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@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.

(Houston, TX– November 1, 2010) High resale listings and the tax credit expiration have both contributed to a slow third quarter for Houston, 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.

“Existing housing is a continuing hindrance to a linear housing recovery,” said David Jarvis, director of Metrostudy’s Houston division. “Since early 2009, many Houston homeowners held off listing their homes on the resale market, waiting for market prices to improve. Now that it appears the economy has hit bottom and is ambling toward its recovery, some of these potential sellers have brought their homes to the market.” During the first 3 quarters, Houston saw a 20.6% increase in number of MLS listings, with 20% of all sales through MLS being foreclosures.

Another negative factor for the Houston housing market was a drop off in starts during 3Q10. Typically 3Q shows the highest starts of the year, but in the wake of the tax credit expiration starts declined 33% from 2Q10 and 3Q09 to 3,982 homes. Annual new home starts rests at 19,663. “In the short term, housing starts are expected to continue in the 18,000-20,000 range as the local and national economy improves,” said Jarvis.

The 5,354 new homes closed in the third quarter of 2010 put annual closings at 22,289. This represents only a 3% drop in the annual rate compared to the annual rate last quarter, a period that included the inflated demand of the Homebuyer’s Tax Credit.

Some positive news for Houston is a dwindling housing inventory, which stands at 6 months of supply at the end of 3Q10, a healthy equilibrium for Houston.

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@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.

Now that school is back in session, let’s revisit the age-old question of “what happened this summer?”

Beginning this spring and continuing through the summer most businesses and individuals associated with the home building industry went on a roller coaster ride.  The chain of events that unfolded over this short period still has many dizzy and confused.  This past Spring the housing industry experienced a boon as the extension of the federal tax credit was itself ”extended” through the end of April.  In an effort to capitalize on the policies put forward by the federal government, most home builders ramped up their construction efforts to take advantage of the inflated demand for new homes.  Because the federal tax incentive accelerated local market demand for new homes, this was the only chance most large private and public builders had to meet their targets for the year.

But like all roller coasters, the steepness of the hill on the way up typically provides some indication as to the depth of the trough of the hill on the way down.  At the beginning of the summer when builders experienced a dramatic drop in potential home shoppers, most industry participants had one question “how far and how long will the drop be”.  Looking back, the decline was greater than most anticipated.

Feeling Sick Yet?

Now that we are on the other side of this hill, what lies in store for the remainder of the year?  Fortunately, home builders in Texas are reporting better traffic and sales in the month of August as buyers wrap up their purchases before school starts.  But looking ahead I believe there are twists and turns still to come.  While we are all hoping that this ride will end, it appears that home builders in Texas may be the first one to get off.

Next?

In order for the Texas markets to end this ride, the fundamentals of housing must be returned.   Nationally, certainty needs to come back into the equation and government involvement in the recovery needs to be waned.  Locally, job growth needs to be sustained to accommodate the continued population increases.  Finally, a new lending environment that is built on true credit worthiness needs to be established and accepted to facilitate the purchase of homes for qualified individuals.