New Subdivisions in the Midwest?

Posted in Chicago Market, Indianapolis Market, Twin Cities Market | Posted on 09-25-2014 | Written by Chris Huecksteadt

 

chris h for newsletter onlyA sure sign of a recovering housing market?  How about new lot development occurring for the first time in several years!  Surveying the Chicago, Indianapolis, and Minneapolis/St. Paul markets Metrostudy has noticed that new subdivisions are beginning to come through the pipeline.  Not a re-hashing of existing communities or a re-configuring of existing developments, but new land, being newly developed.  In 2010, in the Chicago market, there were a total of 383 new lots delivered.  Three HUNDRED and eighty three!!!  There are nearly ten million people living in this market and Chicago could only muster a few hundred new home sites during a 12-month period, a mere 30 new lots coming on line per month.  Through the first six months of 2014, there were a total of nearly 1,500 new lots delivered.  Not only that, but we are beginning to see proposals for new subdivisions that didn’t exist just a few years ago.  That may not seem like much in some markets, but here in the midwest, developers have been in hibernation for the better part of the past five years.  Development activity has not been as scarce in Indianapolis and the Twin Cities as it has been in Chicago, but nearly so.  In the Twin Cities, for example, a total of 964 new lots were delivered in 2010.  In 2013, there were 3,683 new lot deliveries.  Indianapolis has seen a total of 1,400 new lots delivered in the first six months of 2014, compared to just 650 through the first half of 2010.  As midwest markets have slowly recovered, builders and developers have recognized the need for fresh lot inventory.  Quality A and B lots are nearing critical levels of remaining inventory, fewer than 18 months of supply in all three markets.  Given the length of time necessary to bring new lots to the market, developers have been very busy over the past twelve-months in an attempt to keep the housing industry supplied with lots in the most desirable locations.  Look for continued new lot development activity in these markets for the next few years as we play catch-up in order to resupply these markets.

chris h

 

 

 

Indianapolis 2Q14 Housing Survey: Despite Signs of a Stabilizing Market, Forecasts Revised Downward

Posted in Indianapolis Market | Posted on 09-03-2014 | Written by Metrostudy News

  • New lot development is at highs unseen in years; Lot inventory is at lowest monthly level since 2006
  • Despite recent uptick in annual starts, 2Q14 New Home Starts down 2.3% over 2Q13
  • We are revising our initial forecast of 5,000-5,500 new home starts in 2014 downwards to 4,250-4,750 for the year

September 2014: Metrostudy’s 2Q14 survey of the Indianapolis housing market showed many positive signs of continuing recovery in the sector, not withstanding a mid-summer slowdown.  Including single-family detached units, townhouse units and duplex units in the six- county Indianapolis region; there were a total of 4,293 new units started in the twelve-month period ending 2Q14, an increase of 3.5% compared to the previous year. Despite the annual rate’s rise, the 1,233 units started in 2Q14 represents a decline of 2.3% over 2Q13.  The annual rate of closings rose in the second quarter. There were 4,088 closings during the twelve-month period ending 2Q14, a 4.3% increase in annual closings compared to the prior year. The second quarter number of 961 closings is down 5.5% compared to the 2Q13 total of 1,017 closings.

“The recent slowdown is not surprising,” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis market. “Many markets throughout the Midwest experienced significant growth in construction activity over the past two years at a growth rate that was not sustainable given the lackluster rate of job growth and elevated levels of unemployment still in evidence.”

Through the first half of 2014, the majority of counties surveyed by Metrostudy saw a decline compared to construction activity in the first half of last year. Hamilton County still leads the way with approximately 41.6% of all new home construction in the Indianapolis market occurring there.     Marion County is next representing 14.6% of Indianapolis new home construction over the past year.    These two counties will likely continue to account for the majority of all new home demand through 2014. In addition, Hendricks and Johnson Counties will continue to generate increased new home construction activity as builders begin to open more communities there.

“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 2Q09, to a current level of just 29.5 months,” said Huecksteadt.  “This is the first time below the 30-month threshold since the peak of 2006. New lot development has begun to occur at levels not seen for several years.”

Every market area in Metrostudy’s survey saw a significant decline in the amount of vacant and developed lot inventory during the past year. The most dramatic declines have been in those markets that had limited levels of new lot deliveries: Hancock and Johnson counties. Approximately 100 and 400 lots have been absorbed in each of these counties respectively during the past twelve months.

There are good things occurring in the housing market: resale inventory continues to tighten and prices have been on the rise in the existing home market.  What is lacking is strong economic growth that would provide the fuel that the new home market needs to expand.  Given the current economic situation and inventory levels of both existing and new homes, Metrostudy expects from 4,250 and 4,750 new home starts in 2014.

For information contact Chris Huecksteadt @ 847-651-9080
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 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.

Indianapolis Housing Market Metrostudy 1Q14 Survey Results: Signs of Growth & Stability in the New Home Market

Posted in Indianapolis Market | Posted on 05-27-2014 | Written by Metrostudy News

May 27, 2014: Metrostudy’s 1Q14 survey of the Indianapolis housing market shows welcome signs of growth and stability.  Including single-family detached units, townhouse units and duplex units in the six- county Indianapolis region; there were a total of 4,340 new units started in the twelve-month period ending 1Q14, an increase of 10.4% over the previous year. The 839 units started in the first quarter of this year represent a decline of 11.5% over the 1Q13 starts total.  The annual rate of closings rose in the first quarter. There were 4,150 closings during the twelve-month period ending 1Q14, an 8.4% increase compared to the prior year. 1Q14’s total of 744 closings is down 10.6% from 1Q13.

“Our 3Q13 tally of 1,274 was the most new home starts in any quarter since the second quarter of 2008 – over five years ago,” said Chris Huecksteadt, Director of Metrostudy’s Midwest Region. “The lower total of 839 starts for 1Q14 is expected given the seasonality that exists in the local housing market, and the tough winter we experienced. That being said, following several years of market declines, the more recent uptick in new home construction is certainly a welcome sign.”

Growth in the overall market can be seen in several submarkets, most notably Hamilton, Marion, and Boone counties, despite some weather related slowing.  Hamilton County still leads the way with approximately 42.9% of all new home construction in the Indianapolis region. Hendricks County is next representing 14.7% of Indianapolis new home construction over the past year. These two counties will likely continue to account for over 55% of all new home demand through 2014. In addition, Johnson County will continue to gain in market share through 2014, and will likely surpass Marion County later in the year.

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 1.5 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. Only Hancock County has more than a two-month supply of inventory. The low levels of new home inventory will continue to necessitate more construction, as demand will continue to increase if job growth is sustained.

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 2Q09, to a current level of just 30.9 months. This indicator is just above the equilibrium range of 24 to 30 months, with the trend continuing to move downward. “New lot development has begun to occur at levels not seen for several years,” said Huecksteadt.  “Nearly every market area in Metrostudy’s survey saw a significant decline in the amount of vacant and developed lot inventory during the past year, with the exception of Marion County.”

The most dramatic declines have been in those markets that had limited levels of new lot deliveries: Hancock and Johnson counties. Of course new lots continue to come on line in other markets, but much of the excess is being absorbed. This is not to say that the concerns about excessive lot inventory are at an end. There are still numerous developments throughout Indianapolis that are in less desirable locations and priced too high for today’s market.

That being said, Metrostudy does not expect a dramatic increase in the rate of new home construction to occur during the year.  There are still several obstacles in the way: modest – though improving – job growth and consumer confidence, and some uncertainty that the growth that has occurred 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 homebuyers that are out there.

For information contact Chris Huecksteadt @ 847-651-9080
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 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.

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.