Eric Allen, Director for Metrostudy – Utah / Idaho Region will present an Economic and Housing market overview for the ST. George market area.
The presentation will be at the SUHBA monthly meeting on Tuesday, February 7, 2012.
The meeting begins at 11:45am at the Abbey Inn, 1129 S. Bluff St., St. George, UT.
(St. George, UT– January 25, 2012) The St. George MSA saw slight improvements in production and inventory during 4Q11, 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 December 2011, the St. George market had lost -400 jobs throughout all of 2012. “This is a significant decrease when compared to the 400 jobs created at this time last year, and worse than the -100 jobs lost during the previous month,” said Eric Allen, director of Metrostudy’s St. George Division. “While the market remains volatile, economic projections for 2012 appear to be more positive, with the recent announcement of potential companies expanding to the area,” said Allen.
The St. George market area started a total of 149 new homes during 4Q11 compared to 92 that were started in 4Q10. Annual starts of new homes decreased 3.8% to 581 when compared to last year’s pace, however this pace has increased 10.9% from last quarter. “While annual new home starts decreased from 2010, starts in 4Q11 improved, a good indication that builders may still have some confidence in the market,” said Allen. There were 161 new home closings during 4Q11, up from 119 during 4Q10. The annual closing pace decreased 22.1% from 4Q10 to a current total of 600, and up from 558 recorded last quarter.
At the end of 2011 the St. George market had 376 new homes in inventory, a decrease of 4.9% compared to last year. Of this total, 271 homes are single-family detached homes, a supply of 6.3 months. Finished vacant inventory continues to decrease and now totals 79 homes, 23.3% fewer than last year. “While detached inventory appears to be well managed, the attached market remains the weak area in housing,” 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.
(St. George, UT– November 1, 2011) In the St. George MSA, job losses contribute to a volatile housing 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.
According to the most recent numbers released by the BLS, the St. George MSA is showing a loss of –500 jobs in the past 12 months, however they are showing an improvement compared to the loss of –900 at this time last year. The unemployment rate in the St. George MSA took a slight jump in May and June (to end at 9.8%). However, the rate has decreased and remained unchanged at 9.4% for the past two months ending August 2011.
Annual new home starts for the St. George market totaled 523 as of 3Q11, which is a 15.3% decrease when compared to the annual pace last year at this time. “Quarter over quarter starts have also decreased, down 15.4% compared to last year and down 1% from last quarter,” said Eric Allen, director of Metrostudy’s St. George Division. There has been a total decrease of 102 new homes closed this quarter which is down 59.7% compared to 3Q10 and another 16.4% from last quarter. In 2010, new home starts received a boost from the tax credit, and therefore resulting in the recent slowdown as builders continue their focus on selling that inventory.
There is currently an 8.3 month supply of new homes, both attached and detached, in the St. George market, which is an overall decrease of 35 homes, or 8.3% compared to last year at this time. “The current supply of finished vacant homes are at levels the market has not seen since the boom time in 2006, with only a 2.3 month supply of these homes” said Allen. Under construction inventory has increased 39% from last year and 11% from last quarter. Builders are now at a point that when they sell a home, they must build a new one to replace it, therefore demonstrated by the recent increase of homes under construction.
“The St. George market area is slowly showing improvements in both housing and the economy, however expectations for the next 12-18 months should be pretty similar to the present situation; a slow recovery but progress is being made,” 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.
(St. George, UT– August 1, 2011) In the St. George MSA, job losses contribute to a volatile housing 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.
Over the past 12 months through May, the St. George MSA has experienced a net loss of 500 jobs, which is the first job loss since December 2010. The unemployment rate for the St. George MSA sits at 9.1%, similar to the national rate of 9.2%. “The most recent numbers suggest that more uncertain times could be the norm for the coming months,” said Eric Allen, director of Metrostudy’s St. George Division. “However, it is our belief that the overall conditions of the economy should see gradual improvements.”
Annual new home starts for the St. George market totaled 551 as of 2Q11, which is an 8.3% decrease compared to the 601 at this time last year. “Now that the expiration of the tax credit is nearly a year behind us, it is not surprising that new home starts remain low,” said Allen. There have been a total of 708 new homes closed over the past 12 months, which is also a decrease of 5.0% compared to last year’s pace.
“While annual closings did not experience the same increase as starts during 2009-2010, they have remained above starts, which has helped new home inventory remain in balance,” said Allen. New home inventory stands at a 6.3-month supply. Finished vacant home inventory remains low with a total of 88 detached homes, a 1.7-month supply.
“If the market can continue generating jobs, coupled with the pent-up demand, low resale supply, favorable prices and interest rates, we could see increased interest in new home buyers and more home sales for the last half of 2011 and into 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.
(St. George, UT – May 1, 2011) The St. George housing market is showing fundamentals for 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.
According to recently released data, which was also adjusted by the Bureau of Labor Statistics (BLS), the St. George MSA began adding jobs on a year over year basis in December 2010. As of March, there has been a net increase of 1,000 jobs, which represents a .67% annual growth rate. “The return in actual job growth is a major hurdle for the market and will have a positive affect on the housing market as we continue to climb out of the recession,” said Eric Allen, director of Metrostudy’s St. George Division. The unemployment rate was at 9.6% as of March 2011, which is lower than the national average of 8.8% (as of March 2011).
Annual new home starts for attached and detached homes in the St. George market actually experienced a slight increase during the most recent quarter, 1Q11. As of the end of March 2011, the entire market started a total of 655 new homes during the past 12 months. This number has increased 21.7% form the annual pace one year ago, and 7.2% more than last quarter. During the first quarter of 2011, new home starts increased 108% when compared to 4Q10. Annual closings ending March 2011 also increased, at 12.2% compared to last year at this time.
Overall new home inventory in the St. George market remains in equilibrium, and based on current demand there is a 5.5 month supply for both attached and detached homes. Finished vacant home inventory remains low with a total of 85 detached homes on the ground, which translates to a 1.5 month supply. “As the market continues to maintain a very low level of finished vacant home inventory, builders are being forced to start building new homes in order to keep up with the current demand,” said Allen.
“While the market will continue to face some headwinds throughout the year, the fundamentals for an improving economy are in place—job growth, the potential for improving starts, and inventory within equilibrium,” said Allen. “Job growth especially is a key factor in the recovery process.”
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.
(St. George, UT– February 1, 2011) The St. George housing market endured a tough year in 2010 but shows some 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.
“The St. George market has endured yet another trying year for those involved with the building industry. Nonetheless, there have been some positive changes with indications of more in the future,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region. During 2010, there were a total of 614 new homes started in the market, which is a 24.8% increase compared to the annual pace in 2009. Annual new home closings in the market totaled 776 for the year (2010), which is a 4.6% increase from 2009.
“With production at such low levels, overall new home inventory for detached homes in the St. George market appears to be within acceptable equilibrium levels,” said Allen. Based on the current pace of absorption, there is a 4.9 month supply of new detached home inventory in the market.
Finished vacant home inventory continues to show improvement with a 1.8 month supply currently on the ground. “Finished vacant inventory has steadily decreased since the peak of 507 homes in 4Q06, which in large part has made it possible for builders to start building again,” said Allen.
“New home inventory is within healthy equilibrium levels, home prices have reset and land has been written down. These are many positive factors influencing the local markets, and are essential in the recovery process,” said Allen. “We now anxiously await the return of jobs and a more confident consumer, which should slowly return to the market late 2011.” As of December 2010 there has been a net decrease of 1,400 jobs within the St. George MSA, which is an improvement when compared to the 2,800 jobs lost at this same time in 2009.
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.
(St. George, UT– November 1, 2010) The St. George housing market is showing signs of improvement in annual starts rates and inventory with steady closings, 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.
“While we continue to deal with the negative, there are many positive influences that will continue to benefit the housing market, mainly low home inventory, prices and interest rates,” said Eric Allen, director of Metrostudy’s St. George Division.
Over the past 12 months, the St. George market has lost around 1,300 jobs, a major improvement from the 4,000 jobs lost the prior year. The St. George unemployment rate increased slightly to 9.7% in August 2010, hovering around the national rate of 9.6% and higher than the 8% rate in August 2009.
“The third quarter of 2010 brought a slight change in new home production as preparations for the tax credit expiration date came to a halt,” said Allen. “However, annual starts improved.” There were 151 new homes started during the 3rd quarter of 2010, 34.4% less than last quarter (2Q10), but 13.5% more than 3Q09. Annual starts were 30.5% more than 3Q09’s annual rate. A total of 829 homes were closed, increasing the annual rate 2.1% more than 3Q09’s annual rate.
Good news can be found in the decreasing housing inventory. Detached new home inventory totaled 308 units, a 5 month supply. Finished vacant inventory is down 38.5% since last year at this time (3Q09), which is a 2.2 month supply. “This level of Finished Vacant Inventory in the St. George market is a strong improvement over the last 4 years and indicates that new home inventory is structurally on track to equilibrium,” said Allen.
“As an industry, we have done all that we can do at this point and any significant recovery will be driven by the addition of new jobs and an improvement in the overall economy,” 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.
(St. George, UT– August 1, 2010) During the second quarter of the year, the St. George housing market showed some slight 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 U.S. Housing market.
During 2Q10, the St. George market started a total of 231 new homes, which is a 48% increase when compared to 2Q09 and a 60% increase from 1Q10. New home closings totaled 227 during the second quarter of 2010, 14% more than last year at this time and 26% more than last quarter.
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