Local Housing Market Strengthening

Posted in Indianapolis Market | Posted on 02-20-2014 | Written by Metrostudy News

(Indianapolis, IN –February 20, 2014) There are many positive signs today that the new home market is well under way in the recovery process. 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.

Including single-family detached units, townhouse units and duplex units in the six county Indianapolis region, there were a total of 4,492 new units started in the twelve month period ending with 4Q13, an increase of 23.4% compared to the previous year. The 1,011 units started in 4Q13 of this year represents an increase of 14.8% over the 4Q12 starts total. The annual rate of closings also rose in 4Q13. There were 4,242 closings during the twelve month period ending with 4Q13. This represents a 17.3% increase in the number of annual closings compared to the prior year. The fourth quarter number of 1,178 closings is up 6.7% compared to the 4Q12 total of 1,104 closings. “With continued positive job growth and expected declines in the unemployment rate, Metrostudy expects steady growth in the housing market to continue through 2014 and beyond” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis Market.

The supply of finished and vacant inventory fell to 1.6 months overall, the lowest level of supply since the start of the downturn in the housing market. “Finished and vacant inventory has steadily fallen in the overall market, leading to the need for new home construction as demand begins to grow. Levels of new home supply are low in nearly all of the counties that make up the Indianapolis market,” said Huecksteadt.

New lot development has begun to occur at levels not seen for several years. There were 2,101 new lots delivered in the 2013 (2,648 in calendar year 2012). Lot deliveries in 2012 were the most in a year since 2006. Of course, the location and pricing of some of the existing lot inventory will limit those lot’s ability to be absorbed moving forward.

“Metrostudy expects from 5,000 to 5,500 new home starts in 2014. Growth is expected to continue through this year, with another 20% to 25% bump in new home construction expected the following year. Of course, this forecast is heavily dependent upon continued positive news on the jobs front,” said Huecksteadt.

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 Indianapolis housing market continues to grow at a steady pace in the third quarter

Posted in Indianapolis Market | Posted on 10-30-2013 | Written by Metrostudy News

(Indianapolis, IN –October 30, 2013) With continued positive job growth and expected declines in the unemployment rate, Metrostudy expects steady growth in the housing market to continue through the remainder of this year and into 2014. 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.

Since 2007 The Indianapolis market has averaged approximately 865 starts each quarter. The third quarter 2013 tally of 1,275 new home starts is the most new home starts in any quarter since the second quarter of 2008 (over five years ago!). “Keep in mind, however, that the market is at such a level, that nearly any increase in the rate of new home starts or closings will seem impressive percentage-wise. That being said, following several years of market declines, the more recent uptick in new home construction is certainly a welcome sign,” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis Market.    The third quarter number of 1,221 closings is up 25.6% compared to the 3Q12 total of 972 closings.

Finished and vacant inventory has steadily fallen in the overall market, leading to the need for new home construction as demand begins to grow. The supply of finished and vacant inventory fell to 1.6 months overall, the lowest level of supply since the start of the downturn in the housing market. Levels of new home supply are low in nearly all of the counties that make up the Indianapolis market. “The low levels of new home inventory will continue to necessitate more construction, as demand will continue to increase if job growth is sustained,” said Huecksteadt. With the consistent pace of new home construction (the rate of lot absorption), and a declining level of vacant developed lot inventory, the months of supply for lots in Indianapolis has fallen from a high of nearly 80 months in 2Q09, to a current level of just 33.8 months.

New lot development has begun to occur at levels not seen for several years. There were nearly 1,800 new lots delivered in the first nine months of this year (2,679 in calendar year 2012). Lot deliveries in 2012 were the most in a year since 2006. “Of course the location and pricing of some of the existing lot inventory will limit those lot’s ability to be absorbed moving forward,” said Huecksteadt.

“Metrostudy does not expect a dramatic increase in the rate of new home construction to occur through the end of the year. There are still several obstacles in the way: high energy prices, lack of consumer confidence, and some uncertainty that the growth seen in the local economy will be sustained. In addition, relative to the size of the housing market, there is a considerable amount of competition fighting for the potential new home buyers that are out there,” said Huecksteadt.

For information contact:
chris huecksteadt @ 847.241.6570
email chueck@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 Indianapolis housing market maintains growth in the second quarter

Posted in Indianapolis Market | Posted on 07-23-2013 | Written by Metrostudy News

(Indianapolis, IN – July 23, 2013) There are many positive signs today that the new home market is in the recovery process. 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.

From the U.S. Census Bureau, the annual rate of job generation stands at 13,000 net new jobs compared to one year ago. Over the past decade, the Indianapolis market has seen net growth of 58,000 jobs, a positive influence on housing demand, contributing to the absorption of existing inventory and creating new home demand. “With a current net increase in jobs of approximately 13,000, it is expected that the unemployment rate will resume a downward trend,” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis Market.

In the Indianapolis region, there were a total of 3,988 new units started in the twelve month period ending with the first quarter of 2013, an increase of 8.5% compared to the previous quarter. The 974 units started in the first quarter of this year, represents an increase of 47.4% over the 1Q12 starts total. The annual rate of closings also rose in the first quarter. There were 3,864 closings during the twelve month period ending with the first quarter of 2013. This represents a 6.2% increase in the number of annual closings compared to the prior quarter. The first quarter number of 850 closings is up 36.2% compared to the 1Q12 total of 624 closings.

The supply of finished and vacant inventory fell to 1.8 months overall, the lowest level of supply since the start of the downturn in the housing market. Levels of new home supply are low in nearly all of the counties that make up the Indianapolis market. “The low levels of new home inventory will continue to necessitate more construction, as demand will continue to increase if job growth is sustained,” said Huecksteadt.

With the consistent pace of new home construction (the rate of lot absorption), and a declining level of vacant developed lot inventory, the months of supply for lots in Indianapolis has fallen from a high of nearly 80 months in the second quarter of 2009, to a current level of just 41.5 months. This indicator is still above the equilibrium range of 24 to 30 months, but the trend continues to move in a positive direction. New lot development has begun to occur at levels not seen for several years. There were a total of 561 new lots delivered in the first quarter of this year (2,895 in calendar year 2012). “Lot deliveries in 2012 were the most in a year since 2006. Of course, the location and pricing of some of the existing lot inventory will limit those lot’s ability to be absorbed moving forward,” said Huecksteadt.

“Metrostudy expects from 4,600 to 4,800 new home starts in 2013. Growth is expected to continue through 2014, with another 20% to 25% bump in new home construction expected. Of course, this forecast is heavily dependent upon continued positive news on the jobs front,” said Huecksteadt.

For information contact:
chris huecksteadt @ 847.241.6570
email chueck@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 Indianapolis Housing Market continues to improve in the first quarter

Posted in Indianapolis Market | Posted on 05-06-2013 | Written by Metrostudy News

(Indianapolis, IN – May 6, 2013) With continued gains in employment and expected declines in the unemployment rate, Metrostudy expects slow but steady growth in the housing market to continue through the remainder of this 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.

From the U.S. Census Bureau, In Indianapolis, the revised net new job number for 2012 is 16,700. Through the first few months of 2013, the annual rate of job generation stands at 13,000 net new jobs compared to one year ago. From 2010 to 2012 the unemployment rate showed steady declines, from a high of nearly 10% to a September, 2012 rate of 7.1%. Since the end of September, however, the unemployment rate has risen to a current level of 8.5%. With a current net increase in jobs of approximately 13,000, it is expected that the unemployment rate will resume a downward trend. “Without positive trends in the local economy and, more importantly, the job numbers, it would be difficult to forecast continued growth in new home construction,” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis and Chicago Markets.

In the Indianapolis region, there were a total of 3,988 new units started in the twelve month period ending with the first quarter of 2013, an increase of 8.5% compared to the previous quarter. The 974 units started in the first quarter of this year represents an increase of 47.4% over the 1Q12 starts total. The annual rate of closings also rose in the first quarter. There were 3,864 closings during the twelve month period ending with the first quarter of 2013. This represents a 6.2% increase in the number of annual closings compared to the prior quarter. The first quarter number of 850 closings is up 36.2% compared to the 1Q12 total of 624 closings. “The market is at such a level, that nearly any increase in the rate of new home starts or closings will seem impressive percentage-wise. That being said, following several years of market declines, the uptick in new home construction is certainly a welcome sign,” said Huecksteadt.

“Finished and vacant inventory has steadily fallen in the overall market, leading to the need for new home construction as demand begins to increase,” said Huecksteadt. The supply of finished and vacant inventory fell to 1.8 months overall, the lowest level of supply since the start of the downturn in the housing market. Levels of new home supply are low in nearly all of the counties that make up the Indianapolis market.

With the consistent pace of new home construction and a declining level of vacant developed lot inventory, the months of supply for lots in Indianapolis has fallen from a high of nearly 80 months in the second quarter of 2009, to a current level of just 41.5 months. This indicator is still above the equilibrium range of 24 to 30 months, but the trend continues to move in a positive direction. New lot development has begun to occur at levels not seen for several years. “There were a total of 561 new lots delivered in the first quarter of this year (2,895 in calendar year 2012). Lot deliveries in 2012 were the most in a year since 2006. Of course the location and pricing of some of the existing lot inventory will limit those lot’s ability to be absorbed moving forward,” said Huecksteadt.

“Given these factors, Metrostudy expects from 4,600 to 4,800 new home starts in 2013. Growth is expected to continue through 2014, with another 20% to 25% bump in new home construction expected. Of course, this forecast is heavily dependent upon continued positive news on the jobs front,” said Huecksteadt.

For information contact:
chris huecksteadt @ 847.241.6570
email chueck@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.

Indianapolis housing market remains consistent in start of 2012

Posted in Indianapolis Market | Posted on 05-04-2012 | Written by Metrostudy News

(Indianapolis, IN– May 4, 2012) The Indianapolis housing market remains consistent in 1Q12, 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.

During the twelve month period ending with February of 2012, the Department of Workforce Development reported a new increase of 13,400 jobs. If these numbers are to be believed, then the jobs picture is much better than previously thought. Indianapolis unemployment continues to hover above the 8% threshold, with a current rate of 8.2%. “Without positive trends in the local economy and, more importantly, the job numbers, it is difficult to forecast any significant increases in new home construction in 2012 and into 2013,” said Chris Huecksteadt, director of Metrostudy’s Indianapolis division.

Starts in the first quarter of this year were down 4.1% from 1Q11, pushing the annual rate down to 3,322 units (down slightly from 3,351 units the previous quarter). Compared to the prior twelve month period, however, the current annual rate of starts is up 9.2%. Closings in the first quarter were off just 1.1%, while the annual rate of 3,498 units represented a slight decline front he 1Q11 annual rate of 3,518 units.

Finished and vacant new home inventory rose in the first quarter of 2012, up 77 units from the prior quarter. New home inventory has remained relatively static for the past fifteen months as builders have been active in replacing the inventory that has been sold. “With the exception of Hancock County, every market area in Metrostudy’s survey saw a decline in the months supply of standing new home inventory during the past year,” said Huecksteadt. Today there is just a 2.6 month supply of new homes available in the county.

“Today, the rate of new construction has slowed compared to prior quarters. Even given the dramatic revisions to the job numbers, and the current positive estimates in job growth, Metrostudy has yet to see consistent improvement in the market for new home construction,” said Huecksteadt.

For information contact:
chris huecksteadt @ 847.214.5291
email chueck@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.

Growth in Indianapolis housing market hinges on a solid job market

Posted in Indianapolis Market | Posted on 02-08-2012 | Written by Metrostudy News

(Indianapolis, IN– February 8, 2012) Growth in the Indianapolis housing market in 2012 will be dependent upon a solid job market, 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.

Unemployment in Indianapolis currently stands at 8.1%, up a half a point from the prior year, indicating a stagnant job market. Indianapolis has lost approximately 6,300 net jobs in the past 12 months. “Not only has the number of jobs lost kept the potential buyer pool from growing, but even those employed may have been hesitant to act given a volatile economy. Nevertheless, an improving economy should provide the housing market with potential home buyers over the next 12 to 18 months,” said Chris Huecksteadt, director of Metrostudy’s Indianapolis division.

Starts in 4Q11 were down 7% from 4Q10, pushing the annual rate down to 3,329 units (down slightly from 3,379 units the previous quarter). For the year, however, the market finished up 6%, with an increase of 184 units over 2010 totals. “We forecast 2,800 to 4,200 new home starts in the Indianapolis market in 2012, an estimated 20% increase over 2011,” said Huecksteadt.

Finished and vacant inventory is at 735 units, currently half of what it was three and a half years ago. New home inventory is at a 2.5 month supply and overall housing inventory is in the 2.5-3.5 month range. Home builders have continued to sell off excessive inventory while reigning in construction activity and spec spending.

“The housing market will remain below its potential as long as unemployment remains high and job creation lags,” said Huecksteadt. “Although the job market appears to be righting itself locally, there is still a long way to go before the economy can be pronounced healthy.”

For information contact:
Chris Huecksteadt @ 847.214.5291
email: chueck@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.

Indianapolis market sees small improvements during 3Q11

Posted in Indianapolis Market | Posted on 11-03-2011 | Written by Metrostudy News

(Indianapolis, IN– November 1, 2011) 3Q11 shows a stagnant job market in Indianapolis, though the housing market showed small signs of improvement, 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.

Unemployment in Indianapolis currently stands at 8.3%, up a half a point from the previous quarter, indicating a stagnant job market. Indianapolis has lost approximately 10,300 net jobs in the past 12 months. “Not only has the number of jobs lost kept the potential buyer pool from growing, but even those employed may have been hesitant to act given a volatile economy. Nevertheless, an improving economy should provide the housing market with potential home buyers over the next 12 to 18 months,” said Chris Huecksteadt, director of Metrostudy’s Indianapolis division.

“Through the first three quarters of 2011, there has been continued growth in terms of new home starts and closings,” said Huecksteadt. Indianapolis started 1,049 new homes in 3Q11, up 41.5% from 3Q10 starts. A total of 1,101 new units were closed, up 15.5% from 3Q10 closings.

“What is encouraging is that housing supply levels continue to fall throughout the Indianapolis market,” said Huecksteadt. Finished and vacant inventory is at 787 units, currently half of what it was 3 and a half years ago. New home inventory is at a 2.7 month supply and overall housing inventory is in the 2.5-3.5 month range.

“The housing market will remain below its potential as long as unemployment remains high and job creation lags,” said Huecksteadt. “Although the job market appears to be righting itself locally, there is still a long way to go before the economy can be pronounced healthy.”

For information contact:
chris huecksteadt @ 847.214.5291
email chueck@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.

Indianapolis market remains slow during 2Q11

Posted in Indianapolis Market | Posted on 08-15-2011 | Written by Metrostudy News

(Indianapolis, IN– August 1, 2011) Indianapolis job market looking up, housing starts and closings remain sluggish during 2Q11, 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.

Unemployment in Indianapolis currently stands at 7.8%, the lowest rate seen since the end of 2008. Indianapolis has lost approximately 8,800 net jobs in the past 12 months. “The number of jobs lost has kept the potential buyer pool from growing, and even those employed may have been hesitant to act given a volatile economy. Nevertheless, an improving economy should provide the housing market with potential home buyers over the next 12 to 18 months,” said Chris Huecksteadt, director of Metrostudy’s Chicago division.

Indianapolis started 936 new units during 2Q11, up 2.2% from 2Q10 starts. 911 new units were closed, down 15% from 2Q10 closings.

“What is encouraging is that housing supply levels continue to fall throughout the Indianapolis market,” said Huecksteadt. Finished and vacant inventory is at 777 units, currently half of what it was 3 and a half years ago. New home inventory is at a 2.7 month supply and overall housing inventory is in the 2.5-3.5 month range.

“The housing market will remain below its potential as long as unemployment remains high and job creation lags,” said Huecksteadt. “Although the job market appears to be righting itself locally, there is still a long way to go before the economy can be pronounced healthy.”

For information contact:
chris huecksteadt @ 847.214.5291
email chueck@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.

Indianapolis housing market shows signs of improvement during 1Q11

Posted in Indianapolis Market | Posted on 05-09-2011 | Written by Metrostudy News

(Indianapolis, IN – May 1, 2011) Job market, affordability, and low inventories show positive signs during 1Q11, although we should remain cautiously optimistic, 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 unemployment rate in Indianapolis currently stands at 8.5%. For the twelve-month period ending in February of 2011, the market saw an increase of approximately 6.400 jobs. “Even with the addition of jobs this year, unemployment remains high, nearly double the levels experienced throughout much of the last decade,” said Chris Huecksteadt, director of Metrostudy’s Indianapolis division. “Nevertheless, an improving economy should provide the housing market with potential home buyers over the next twelve to eighteen months.”

Indianapolis remains one of the more (most) affordable housing markets in the country. With a new home median price of approximately $250,000 and the resale market median of $150,000, these figures are well below comparable product prices in other metropolitan areas. “Affordable markets should fare better than pricier housing markets,” said Huecksteadt.

With the annual rate of new home closings holding in the 3,300 to 3,500 unit range for the past eighteen months, the months supply of new home inventory has continued to decline to a current level of 2.9-months. Finished vacant inventory is at 855, half of what it was three and a half years ago.

778 new units were started in 1Q11, a decline of 4.1% compared to a year prior. “The forecast of 3,500 to 3,800 new home starts in the Indianapolis market represents an estimated 25% increase over 2010, a healthy growth rate percentage wise, but well below historical norms in the Indianapolis region,” said Huecksteadt. “There is still a long way to go before the economy can be pronounced healthy.”

“It will be the health of the job market which will determine whether the growth in housing is to be maintained in 2011,” said Huecksteadt.

For information contact:
chris huecksteadt @ 847.214.5291
email chueck@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.

03/15/11: Metrostudy to Speak at Hancock County Builder’s Council

Posted in Events, Indianapolis Market | Posted on 03-09-2011 | Written by Chris Huecksteadt

Chris Huecksteadt will be speaking at a luncheon hosted by the Hancock County Builder’s Council, a chapter of the Builder’s Association of Greater Indianapolis. The event takes place on Tuesday, March 15.