Boise 2Q14 Survey: Prices Rising; Production of Entry Level Homes Dropping

Posted in Boise Market | Posted on 08-21-2014 | Written by Metrostudy News

August 2014: Metrostudy’s 2Q14 survey of the Treasure Valley market showed that activity and prices in the region are increasing even as the supply of new homes coming to market at the lower price points is dropping.  There were 837 new homes (both attached & detached) started during the second quarter of 2014, down 21% from 2Q13, however increased 22% from last quarter. New home closings totaled 739 during the quarter, and decreased 18% from last year at this time however increased 19% from last quarter. New home starts for the first half of 2014 are down 14% compared to the first half of 2013. Annual new home starts have been increasing between 40-70% since 2Q12, however have begun to level off. Annual starts have increased 4% compared to last year’s pace for a total of 3,239 and annual closings are up 5% to 3,102.

Ada County started 605 new homes during 2Q14, which is down -27% compared to 2Q13, however increased 14% from last quarter. Annual starts increased 1% from last year to 2,403. There were 548 new home closings during 2Q14, down -27% compared to last year, however up 17% from last quarter. Canyon County started 223 new homes during 2Q14, which is down -.4% compared to last year, however up 52% from last quarter. Closings during the second quarter increased 29% over last year, and 22% from last quarter, for a total of 185. Annual new home starts increased 12% over the pace last year to 819 and annual closings are up 31%, for a total of 789.

“Affordability concerns and escalating prices continue to limit options for first time buyers, as fewer consumers can qualify for higher priced homes,” said Eric Allen, Director of Metrostudy’s Utah/Idaho region.  “The median price for a new home in Ada County is $275,000, up 20% over last year and 8.5% above last quarter. The median price in Canyon County has increased 18% over last year to $177,600 and up 2% from last quarter.  Less product is being produced at the lower price points and this will continue to squeeze lower income buyers.”

eric 2q

As of June, there is a six month supply of new single family detached homes in the Treasure Valley market, up from 5.8 months recorded at this time last year, and from 5.3 months last quarter. Inventory for homes under construction declined 1% compared to last year at this time, and is nearly unchanged from last quarter. This total translates to a 3.3 month supply, down from 3.6    months in 2Q13. There are 594 finished vacant homes on the ground, a 29% increase from 2Q13. Despite the increase, the supply remains healthy at 2.4 months, up from 2.0 months in 2Q13. So far, closings have kept pace with the market,     resulting in a healthy level of finished vacant homes, however it will be imperative to monitor as we push into the second half of the year.

There is a 12.9 month supply attached homes on the ground. Of this, under construction inventory represents a 7.0 month supply, along with a 5.5 month supply of finished vacant units.  Ada County currently has a 6.2 month supply of new detached inventory on the ground, up from 5.3 months last quarter. Currently there is a 2.4 month supply of finished and vacant homes on the ground, which, and a 3.5 month supply of under construction inventory. Canyon County has a 5.5 month supply of new home inventory. Under construction inventory sits at 2.9 months, and finished vacant inventory represents a 2.4 month supply.

Inventory of vacant developed lots (VDL), for both attached and detached homes in Ada Count is down -.2% from last year, and -4% from last quarter. Lot supply now sits at 22.9 months, down from 23.1 at this time last year. Vacant developed lot inventory in Canyon County is down -14% from last year. Based on the current pace of absorption, there is a 52.9 month supply, which is down from 69.2 months recorded in 2Q13. There have been 2,618 new lots delivered over the past year, while builders have absorbed 3,239, for a net decrease of -621 lots.

The Boise/Treasure Valley housing market has enjoyed a strong recovery and rapid growth over the past couple years, which is partly due to the growing economy.  While the housing market may not be expanding at the same pace as last year, momentum is expected to continue.  The fundamentals of the economy remain strong, which will help keep housing moving forward.

For information contact Eric Allen @ 801.571.7700 x424
email eallen@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 is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analyticsdriven 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 Treasure Valley housing market maintains stability in the third quarter

Posted in Boise Market | Posted on 10-31-2013 | Written by Metrostudy News

(Boise, ID –October 31, 2013) Despite the recent headwinds from the Government shut-down, to rising interest rates, the Treasure Valley housing market continues to stabilize.  This is 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.

According to Metrostudy’s quarterly survey of all new home projects in the Treasure Valley market, there were 1,059 new homes started (both attached and detached) during 3Q13. This is a 37% increase over 3Q12, and unchanged from last quarter. Builders started 3,412 homes in the previous twelve months ending in September, which is 55% more than the annual pace at this time last year. New home closings totaled 984 during the third quarter, which is 34% higher than 3Q12, and 9% more than last quarter. Annual closings totaled 3,211 over the past twelve months, which is an increase of 72% compared to 3Q12. Ada County started 773 new homes during 3Q13, which is 33% higher than this time last year, however decreased -7% from last quarter. There were 715 new home closings during 3Q13, up 26% compared to last year at this time, and down -6% from last quarter. Annual new home closings increased 60% from last year’s pace to 2,503. The housing market in Canyon County has experienced significant improvements over the past year. New home starts in 3Q13 totaled 278, 46% higher than last year, a level not seen since 2007. Annual starts increased 96% from last year to 818. New home closings are up 60% quarter over quarter to 263 and annually increased 130%, to 702.

As of the end of September, total new home inventory for single-family detached homes totaled 1,414, an increase of 20% compared to a year ago. Despite the consistent increase, the supply remains healthy at 5.6 months. The total number of homes under construction increased 22% from last year, and up another 5% from last quarter, to 884. However, the supply of these homes sits below equilibrium at 3.5 months, down from 8.3 a year ago and from 5.8 recorded last quarter. Finished vacant home inventory is a leading indicator of market changes, and based on the level of detached inventory, the Treasure Valley market has been below equilibrium for the past 18 months. There are currently 469 detached finished vacant homes on the ground, which has increased 14% since last year, and up 3% from last quarter. However, despite this increase, the supply has dropped from 2.9 months a year ago to 1.9 months currently. Ada County currently has a 5.6 month supply of new detached inventory on the ground. Of this total, 335 are finished and vacant, which is a 1.7 month supply. Under construction inventory totals 684, or 3.6 months. Canyon County has a 5.9 month supply of new home inventory, a total of 345. Under construction inventory is up to 198, which is a 3.4 month supply. Finished vacant inventory jumped 72% since last year, however is only 2.3 months of supply.

Inventory of vacant developed lots (VDL), for both attached and detached homes in Ada Count has declined for 12 consecutive quarters, and now totals 4,316, down -26% from a year ago. Lot supply now sits at 20 months, down from 39.2 at this time last year. Vacant developed lot inventory in Canyon County is down -10% from last year to 4,117. Based on the current pace of absorption, this is a 60.4 month supply, which is down from 131.2 months recorded in 3Q12. There have been 921 new lots delivered to the market over the past year, while builders have absorbed 3,412 in the same time period.

“Consumer Confidence has taken a hit with the turmoil surrounding the government shutdown, which has affected buyer sentiment. Also, with prices and interest rates increasing, purchasing power for potential home buyers will weaken, and some may be forced to look for homes at different prices, with fewer features, or delay purchasing altogether. The industry should be looking at ways to overcome this hurdle and adapt to the changes,” said Eric Allen, Regional Director of Metrostudy’s Utah/Idaho Region.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.

Boise housing market continues to grow in the second quarter of 2013

Posted in Boise Market | Posted on 08-09-2013 | Written by Metrostudy News

(Boise, ID – August 9, 2013) With the fundamentals falling firmly in place, the trend remains positive as the Treasure Valley market is expected to gain momentum through the second half of the year. This is 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.

As of the end of June, there have been approximately 9,100 new jobs created over the past twelve months within the Boise MSA. Based on the most recent numbers released from the Bureau of Labor Statistics (BLS), there are currently 275,200 people employed in the Treasure Valley market. The unemployment rate increased slightly in June to 6.2%, which is down from 7.3% recorded last year at this time, and well below the peak of 9.9% in January of 2011. “The local economy was experiencing stronger growth during 2012, and while job creation has slowed in some sectors this year, all but one remains positive,” said Eric Allen, Regional Director of Metrostudy’s Utah/Idaho Region.

According to Metrostudy’s quarterly survey of all new home projects in the Treasure Valley market, there were 1,061 new homes started (both attached and detached) during 2Q13. This is a +69% increase over 2Q12, and +45% above last quarter. “As we enter the “high start” season, and contend with low levels of new and resale home inventory, it is no surprise that production continues to ramp up,” said Allen. Builders have started 3,144 homes in the past twelve months, which is an increase of +66%, compared to the annual pace last year at this time. Year to date starts have already surpassed the first half of 2012 by 696 homes, or +63%. New home closings totaled 910 during the second quarter, which is +95% higher than 2Q12. Annual new home closings have increased +90% compared to last year at this time, for a total of 2,975. There were 759 new home closings during 2Q13, up +90% compared to last year at this time, and annual new home closings increased +75% from last year’s pace to 2,363.

As of June, the total new home inventory for detached homes totaled 1,341. While the total number of homes has increased +19%, the supply has dropped from a 9.4 month supply to 5.8 months. Under construction inventory is up +34% from last year and +15% from last quarter, however sits below equilibrium with a 3.6 month supply. Finished vacant inventory has decreased -1.7% from last year, however increased 41 homes from last quarter. Despite the slight increase from last quarter, the supply of finished vacant homes remains well below equilibrium at a 2.0 month supply. “Despite their efforts, builders are having a difficult time delivering finished homes to the market as their specs tend to get purchased during construction,” said Allen.

Inventory of vacant developed lots (VDL), for both attached and detached product in Ada County has declined for 11 consecutive quarters, which is a 23.7 month supply, down from 46.5 months at this time last year. Vacant developed lot inventory in Canyon County is down -9.6% from last year. Based on the current pace of absorption, this is a 69.8 month supply, which is down from 198.1 months recorded in 2Q12. “There have been 1,212 new lots delivered to the market over the past year, while builders have absorbed 3,144 in the same time-period. This signals that the oversupply of lots, particularly those in desirable areas is no longer a concern, with the focus now turned to delivering lots for future demand,” said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.

Boise market maintains growth in 2013

Posted in Boise Market | Posted on 04-25-2013 | Written by Metrostudy News

(Boise, ID – April 25, 2013) With the market in full recovery mode, sound price strategies will be key as some buyers face the threat of being priced out of the market. This is 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.

According to the revised numbers released by the Bureau of Labor Statistics, the Treasure Valley market has added 6,200 new jobs annually to the market as of March 2013, a 2.4% growth rate. “Job growth remains positive in nearly every sector with the exception of Information Services and the Federal Government sectors, with a combined loss of only 300 jobs over the past year. The Professional & Business services sector took the lead in job growth with the addition of 2,400 new jobs in the past year,” said Eric Allen, regional director of Metrostudy’s Utah/Idaho Region. The unemployment rate in the Treasure Valley market continues to decline. While the market experienced a slight jump in the unemployment rate during January, a normal seasonal trend, the rate has begun decreasing again. As of February 2013, the unemployment rate sits at 6.5%, down from 8.7% recorded at this time last year.

According to Metrostudy’s quarterly survey of all new home projects in the Treasure Valley market, there were 766 new homes started during the first quarter of 2013. This is a +63% increase over 1Q12, and +32% above last quarter, and also marks the seventh straight quarterly increase of new home starts. Annually, builders have started 2,759 homes, which is a +77% increase compared to the annual pace of 1Q12. The annual starts pace also increased +12% compared to last quarter. “The consistent increase in new home production demonstrates a strengthening confidence level in both builders and consumers,” said Allen.  Quarterly closings totaled 722, up +108% compared to last year at this time and +17% from last quarter. New home closings have seen the largest increase since Metrostudy started its survey of the market in 2005. Annual new home closings increased +82% compared to last year, for a total of 2,543.

As of the end of March, there were 1,227 new detached homes in inventory throughout the Treasure Valley market, up +28% from last year. Despite the increase, new home inventory rests on the low end of equilibrium at 6.3 months. Compared to the 9 month supply recorded last year at this time, it appears the market may have room to expand in the desirable area. “With closings increasing at such a rapid pace, it has left the market in short supply of available homes, “said Allen. Finished vacant home inventory in the market has decreased -11% from last year, and translates to a low 2.2 month supply. The increase has come from homes under construction, which has increased +73% over last year, which is a 3.9 month supply. Attached new home inventory has a 9 month supply, which is down -25% from last year.

Inventory of vacant developed lots (VDL), for both attached and detached product in Ada County declined -20% from last year at this time, and now translates to a 29.8 month supply, down from 58.4 months recorded in 1Q12. Vacant developed lot inventory in Canyon County has also decreased once again, and currently has an 81.5 month supply. While the supply is far above equilibrium, it is down from 286 months just one year ago.  “The market has only delivered 929 new lots over the past year, while absorbing 2,759 in the same time period”, said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.

Boise market continues gaining strength in 3Q12

Posted in Boise Market, National Housing Market | Posted on 10-25-2012 | Written by Metrostudy News

(Boise, ID–October 25, 2012) The Treasure Valley market continues to recoverand gain momentum as we near one of the best years since 2009. This is 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 Boise MSA has sustained positive job growth for the past 13 months, and appears to be slowly gaining momentum. Job growth in the market has increased 1.5% when compared to September 2011, or +3,800 jobs. The unemployment rate in the Boise MSA has been on a steady decline since the beginning of the year. ”With job growth on the rise, the unemployment rate now sits at 6.9% as of August, which is down from 8.9% recorded last year at this time,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region.

Over the past 12 months there have been 2,365 new homes started in the market, which is an 84% increase compared to the annual pace one year ago. Of this total, 930 starts occurred during 3Q2012, which is a 100% increase over 3Q2011.” Annual new home starts have increased for the fifth consecutive quarter,” said Allen. Annual new home closings are also on the climb, with a total of 1,874 at the end of 3Q2012. This is an increase of 41% compared to last year’s annual pace. Quarterly closings totaled 737 in the third quarter, which is a 71% increase over last
year at this time.

Overall new home inventory for attached and detached product in the Treasure Valley market
increased 48% over 3Q2011 to a total of 1,516 homes, which is a 9.7 MOS. 1,516 homes, which is a 9.7 MOS. Ada County currently has an 8.1 month supply of new detached homes in inventory, a total of 955. New detached home inventory in Canyon County has increased 97% from last year at this time to a total of 236, which is a 9.3 month supply. Inventory of vacant developed lots (VDL), for both attached and detached product in Ada County has declined for 9 consecutive quarters and currently totals 5,924, or a 36.7 month supply. Vacant developed lots in Canyon County have decreased 10 straight quarters to 4,594, which at the current pace of absorption calculate to a 130 month supply.

“This year has been filled with a much stronger buyer and real growth, contrary to that in 2009, when sales were bolstered by the tax credit. The fundamentals are well in place for the market to continue its road to recovery; however the upcoming election could place many would be buyers on the backburner again, waiting for a more stable direction from our national leaders,” said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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

11/07/12: Metrostudy 3Q 2012 Boise Executive Market Briefing

Posted in Boise Market, Events | Posted on 10-24-2012 | Written by Eric Allen

When: Wednesday November 7, 2012

Schedule:
9:00 a.m. Continental Breakfast / Networking
9:30 a.m. Market Briefing Begins
-Overview of National Economy
-Overview of Boise / Treasure Valley Economy
-Overview of Boise / Treasure Valley Housing Market Outlook
11:00 a.m. Market Briefing Adjourns

Where: The Riverside Hotel – 2900 Chinden Blvd. Boise, ID 83714

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 Eric Allen: 801.571.7700 x424

Boise market is recovering and gaining strength in 2Q12

Posted in Boise Market, In The News | Posted on 08-06-2012 | Written by Metrostudy News

(Boise, ID–August 6, 2012) With a healthy gain in employment, along with a stabilizing housing market, there is no denying the fact that the Treasure Valley market is in recovery mode and appears to be gaining strength. This is 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 healthy gain in employment over the past year has contributed to a reduction in the unemployment rate, which currently sits at 7.4%. This rate is down from 8.2% from the same time last year. According to the BLS, the Boise MSA created 9,300 jobs in the prior twelve month period through the end of June; a 3.6% growth rate. “The market did experience a slight lull in job creations from October to February, however is now back on the path of consistent growth,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region.

Over the past 12 months there have been 1,913 new homes started in the market, which is a 65% increase compared to the annual pace of 1,157 in 2Q11. New home starts during the second quarter 2012 totaled 641, which is a 120% increased compared to 1Q11, and 36% more than last quarter. “While new home closings are not accelerating at the same pace as of yet, there has been a 13% increase in annual closings when compared to last year, to a total of 1,564 homes. Of this total, 463 occurred during the second quarter 2012, which is 58% more than last year at this time,” said Allen.

As of 2Q12, there are a total of 1,335 new homes in inventory, a 10.2 month supply. The largest increase has occurred in homes under construction. At 733 units this is an increase of 89%, from 388 at this time last year. This represents a 5.6 month supply, up from 3.4 months in 2Q11; still within the healthy equilibrium parameters of 4-6 months. As the Treasure Valley market continues to work its way out of the housing slump, currently developers delivered 179 lots, while builders absorbed 633 lots. The increased starts activity and minimal lot development have caused the relative supply of lots to decline for the past 4 quarters, thus resulting in a 70.3 month supply.

“The balance of 2012 is both opportunistic and problematic. Demand continues to build but supply is short. Coupled with growing pressure on production capacity and the “trades”, builders will be hard pressed to maintain inventory levels that can adequately meet demand,” said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.

Boise housing market expected to pick up momentum in coming year

Posted in Boise Market | Posted on 04-23-2012 | Written by Metrostudy News

(Boise, ID– April 23, 2012) The Boise market continues to see job formations. The local economy remains positive and will likely pick up momentum for the remainder of the year. This is 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.

According to the most recent numbers released by BLS, the Boise MSA experienced a steady decrease in the unemployment rate from June 2011 to the end of the year. The first two months of 2012 show a slight increase in the unemployment rate, yet this is relatively normal based on historical seasonality. As of February 2012, the unemployment rate decreased slightly to 8.7%. “While the economy has not fully recovered from the job loss during the recession, it is apparent jobs are becoming easier to find and fill,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region.

There were a total of 446 new homes started during the first quarter of 2012 in the Treasure Valley market, an increase of 52% compared to last year at this time, and 34% higher than last quarter. The annual starts pace also increase 17% compared to last year, to 1,537 homes. Demand for new homes appears to be picking up, coupled with the improving market conditions and mild winter; builders have been busy getting back to the business at hand. New home closings totaled 347 during 1Q12, up 13.4% compared to last year at this time and 7.4% more than last quarter.

As of 1Q12, there are a total of 1,136 new homes in inventory, a 9.8 month supply, up from 7.0 months. Finished vacant home inventory has increased 14% since last year, and now has a 4.4 month supply. Although new home inventory has increased, the current levels are still within equilibrium. While the supply of finished lots remain high at 90 months, the total number decreased –7.5% to 11,543. Lot inventory in non-performing projects is having a negative impact on the overall supply, however by removing these lots, supply appears to be tightening in strong submarkets.

“While the market still faces headwinds, new home production is expected to increase throughout the year,“ said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.

Boise housing market sees mixed signs of improvement at the end of 2011

Posted in Boise Market | Posted on 01-25-2012 | Written by Metrostudy News

(Boise, ID– January 25, 2012) The Boise market saw an increase in jobs and healthy housing inventories during 4Q11, but production and consumer confidence continue to wane. This is 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.

According to the most recent numbers released by BLS, the Boise MSA saw 6,100 new jobs created during 2011, which is a major improvement compared to the -4,500 jobs lost throughout 2010. “While the job numbers appear to be positive, there has been little improvement in consumer confidence, which needs a significant boost in order to stimulate the economy,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region.

There were a total of 1,412 new homes started throughout 2011, a decrease of 4.7% when compared to 2010. While new home production remains low, the market is beginning to pick up speed, with annual new home starts increasing 8.5% compared to last quarter. Annual new home closings were down 26.9% from last year at this time; however they have increased 2.1% from last quarter’s pace.

As of 4Q11, there are a total of 1,063 new homes in inventory, an increase of 5.1% compared to last year. While the supply of homes increased from 5.5 months in 4Q10, the current level is still considered to be within equilibrium. Inventory for homes under construction increased 15.6% from a year ago to 333, a 3.2 month supply. “This increase is another trend signaling that construction is improving,” said Allen.

“The consensus among market professionals seems to be that the worst is behind us. Assuming the economy continues with slow improvements, and resale’s, foreclosures and home values remain relatively static, Metrostudy expects builders to continue increasing production through 2012,“ said Allen.

For information contact:
Eric Allen @ 801.571.7700 x424
email: eallen@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.

Boise sees slight job increase resulting in slow home sales

Posted in Boise Market | Posted on 11-08-2011 | Written by Metrostudy News

(Boise, ID– November 1, 2011) The Boise housing market shows effect of tax credit comparing year over year, but likely it is set to improve, 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.

According to the most recent numbers release by BLS, the Boise MSA has experienced an increase of 4,000 new jobs created over the past 12 months, which is an annual growth rate of approximately 1.6%. The unemployment rate for the Boise MSA took a slight jump in June, however has decreased slightly for the past 2 months, and currently sits at 9.0%.

During the 3rd quarter, builders started 472 new homes, which is an increase of 41% compared to 3Q10, and 2% above last quarter (2Q11). Annual new home starts in the market for attached and detached homes have totaled 1,305, which is a decrease of 23% when compared to the annual pace last year, however is an 11% increase compared to the pace last quarter. “This increase is very likely due to the tight supply of quality new and used homes available in the market,” said Eric Allen, director of Metrostudy’s Idaho/Utah Region.

Market share for new homes in the Treasure Valley market has traditionally been highest under $200,000. “However, with the lack of available inventory for homes in the higher price segments, production is increasing in all segments above $200,000,” said Allen.

As of 3Q11, there are a total of 1,043 new homes, both attached and detached in the Treasure Valley market, which is down 3% compared to 3Q10, however increased 4% from last quarter, or 38 homes. At the current pace of absorption, this translates to a 9.4 month supple. The number of single family finished vacant homes has decreased 2% compared to last year to 452; however the supply has increased from 2.8 to 4.5 months. “At this time last year, the market was benefiting from the surge of the tax credit, therefore new home closings were much higher than today, thus resulting in an increase in the supply of homes,” said Allen.

“Consumer confidence continues to be a major factor in the recovery of this recession, and therefore resulting in slow home sales. The improvement of jobs is slowly stimulating the economy, however may take some time for the consumer to be fully engaged in the home buying mode,” said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@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.