Posted in Nashville Market | Posted on 12-11-2014 | Written by Metrostudy News
- 3Q14 New Home Starts down 1% YoY, although they are up 13% from 2Q14
- We continue to see a decline in the number of Vacant Developed Lots, which are down 9% YoY and 22% since 3Q12
December 2014: Metrostudy’s 3Q14 field research of the Nashville housing market showed 1,838 quarterly construction starts, down 1% YoY but up 13% from the prior quarter. The 12 months ending in September 2014 saw 6,163 new home starts in the 8 county region, up 11% year over year from 3Q13.
The Nashville area recorded 1,645 New Home Closings in 3Q14, up 4% year over year from 3Q13, and up 18% from the previous quarter when closings reached 1,390. The trailing 12 months of activity in the area resulted in 5,626 closings in the area through 3Q14, up 12% year over year from when annual closings reached 5,009 units in the 12 months ending in 3Q13.
The 6,163 new homes built over the past 12 months also absorbed an equal number of finished lots (VDL’s), which are already in short supply in certain submarkets such as Williamson County. Lot inventory has declined by 22% from two years ago and by 9% year over year. Total VDL inventory for the region now stands at 11,400 which equates to a 22 month supply but areas such as Williamson County are down to a 14 month supply, which is considered a severe shortage (2 years’ worth of lot supply is considered about normal).
“With land and lot prices rising, higher material costs and increasing labor constraints, it appears that home prices will continue to rise perhaps into all of 2015,” said Eugene James, director for Metrostudy, a local housing research company. “We expect to see new construction activity to increase in areas that were not seeing much activity as little as a year ago, while the core regions may experience some slowing in part, because of much higher home prices and a shortage of finished buildable lots,” said James.
For information contact:
Eugene James – 404.510.1080 cell
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
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