Despite Strong Growth, Excess Lot Supply Keeps Prices Stable

Posted in The Triad Market | Posted on 12-12-2014 | Written by Metrostudy News

  • The region is seeing the strongest growth in years – YTD Housing Starts are up 15.6% over 2013 levels
  • Oversupply of lots in many locations is allowing builders to keep costs in line with market demand
  • Townhomes are showing increased strength in the Triad market, with 3Q14 construction up 26.7% over 3Q13

December 2014: Metrostudy’s 3Q14 survey of the Triad’s housing market shows that despite continuing signs of strength, the region needs continued strong job growth to reduce the excess supply of housing.  Through 3Q14, Annual Starts (the sum of the past four quarters) of 2,323 were observed in the Triad, an increase of 14.4% from 3Q13. The 688 quarterly starts in 3Q14 was a 2.2% increase over 3Q13. The 587 quarterly closings in 3Q14 was a 11.6% decrease from the 526 homes closed in 3Q13.

“Looking at a year-to-date perspective, the Triad is up 15.6% in starts compared to 2013, and up nearly 20% in closings,” said Jay Colvin, Director of Metrostudy’s Triad region. “The strong upward trend so far this year indicates that the Triad will post the strongest growth it has seen in many years.”

Total inventory, which includes model homes, finished vacant homes (no visible sign of occupancy), and homes under construction, totaled 1,735 units in 3Q14. Based on the closing pace over the past 12 months, the Triad now has a 9.5 months-of-supply of new homes.The stable finished vacant home inventory is an indicator that the growth in construction activity over the past year has not been artificial.

The 10,957 lots on the ground in the Triad in 3Q14 is 10% less than the number of lots on the ground in 3Q13. This represents a 56.5 months-of-supply at the current start rate. Even though this figure is well above the range that Metrostudy considers normal for lot supplies, there are shortages of lots in the highest demand locations, and that has driven limited new lot production. 1,112 lots were delivered to the market over the past 4 quarters. Those lots have been added to currently active neighborhoods which have maintained or increased sales over the past few quarters.

“The oversupply of lots, many of which are bank owned or in the default process, has aided in resetting the price for lots, helping builders offer homes priced to reflect market demand,” said Colvin. “As higher activity neighborhoods near build out, existing lots offer a cost effective replacement alternative to new lot production, and allow builders to keep cost in line with market demand.”

Townhomes – following national trends – are showing increased gains in the Triad new home market. Construction on 474 townhomes started over the four quarters ending 3Q14, a 26.7% increase from 3Q13. 430 townhomes were closed on over the previous four quarters, which was a 25.7% increase from the 3Q13 figure. 114 townhomes were closed on in 3Q14, 28% more than 3Q13.

The 2,363 vacant developed lots available for townhome product, is down 10.7% from 3Q13. At the current pace of starts, the total number of lots represents a 59.8 months-of-supply. 191 new townhome lots were developed over the previous 12 months, a sign that well positioned townhome communities are seeing sustained demand.

Lot supplies are still high, but as with the overall trend, the most in-demand submarkets are seeing shorter supplies and the gains in lot development are expected to continue.  The job gains that the region has experienced so far in 2014 are very important to the local housing industry. However, for a sustainable recovery, job growth needs to stay at this level and avoid the choppiness that the market has experienced over the past several quarters. In order for the excess housing supply to be reduced, the region will need to experience greater job growth rates, as well as increased rates of population growth.

For information contact:
Jay Colvin – 919- 314-0420
jcolvin@metrostudy.com

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 Focus is Inventory as In-Demand Areas are Seeing Shortages

Posted in The Triad Market | Posted on 08-13-2014 | Written by Metrostudy News

August 2014: Metrostudy’s 2Q14 survey of the Triad housing market showed construction delays from the hard winter finally being mitigated, as quarterly starts increased to 632, up 14.7% over 2Q13.  Annual Starts of 2,295 were observed in the Triad in 2Q14, up 27.6% from 2Q13. Annual Closings of 2,132 in 2Q14 was an increase of 287 homes from 2Q13. The winter delayed both home starts and completions, and contributed to the slower pace of closings as home buyers were unable to move into their homes while awaiting final completion of construction.

The 567 finished vacant homes on the ground in 2Q14 represent a 3.2 month supply, below the 7 year average of 5.1 m-o-s. As standing inventory in higher activity locations decline, under construction inventory has continued to increase to meet demand. The 978 homes under construction in 2Q14 represent a 5.5 months’ supply, and is a 17.1% increase from 2Q13. “Weather related delays in construction have caused some housing construction delays,” said Jay Colvin, Director of Metrostudy’s Triad region. “The inventory picture will be the focus for the market for the next two quarters. If inventories remain high, the starts projections for next year will be more subdued.”

The 11,194 lots on the ground in the Triad in 2Q14 are 11.6% fewer than 2Q13’s levels. This represents a 58.5 months-of- supply at the current start rate, yet even though this figure is well above the 18-24-month range that Metrostudy considers normal, there are shortages of lots in the highest demand locations, and that has driven limited new lot production.

“The oversupply of lots, many of which are bank owned or in the default process, has aided in resetting the price for lots, helping builders offer homes priced to reflect market demand,” said Colvin. “As higher activity neighborhoods near build out, existing lots offer a cost effective replacement alternative to new lot production, and allow builders to keep cost in line with market demand.”

See the Top 10 Builder List by Annual Starts based of Metrostudy’s 2Q14 Survey Findings

triad top 10 for 2Q14

 

Townhomes – following national trends – are showing increased gains in the Triad new home market. Construction began on 148 townhomes in 2Q14, up 82.7% from 2Q13.  Only 84 townhomes were closed on in 2Q14, slightly lower than the number in 2Q13.  The slowdown in closings again is seen as weather related, as finished vacant inventory has dropped 12% year over year, while under construction inventory has increased 15%.

Vacant developed lots available for townhome product, is down 11.4% from 2Q13. At the current pace of starts, the total number of lots represents a 62 months-of-supply. Lot supplies are still high, but as with the overall trend, the most in-demand submarkets are seeing shorter supplies.

The job gains that the region has experienced so far in 2014 are very important to the local housing industry. However, for a sustainable recovery, this level of job growth needs to be sustained and avoid the choppiness that the market has experienced over the past several quarters. In order for the excess housing supply to be reduced, the region will need to experience greater job growth rates, as well as increased rates of population growth.

Guilford County captures the greatest share of new home activity in the Triad with 41% of the new home starts that began in the six counties that makes up the Triad market. The 993 new homes started in Guilford Co. over the previous 12 months was an increase of 26% over 2Q13. The 748 homes of total inventory represent a 9.9-months’ supply.

Forsyth County made up 27.74% of Triad new home activity through 2Q14. The county saw 699 new home starts for the four quarters ended 2Q14, an increase of 26.2% from the 2Q13 figure of 554. 686 new homes were closed in the trailing four quarters ending in 2Q14, up 12.1% from 2Q13. The county now has a 7.9 months’ supply of new homes based on the 449 inventory homes (models+finished vacant+under construction).

Alamance County continues to see the strongest growth in the Triad. The county started 371 homes in the four quarters ended 2Q14. This represents an 18% market share, which is up from 16% market share in 2Q13. The county has not only seen an increase in new home construction but demand as well. 330 homes were closed in the four quarters ended 2Q14, a 44.7% increase. Alamance is benefiting from a lack of entry level product in Durham and Chapel Hill, and the majority of the production gains have been near the Alamance and Orange county border.

Many markets across the country have been experiencing lot shortages in higher demand locations. When looking at the Triad, this same trend can be seen by looking at single family detachedneighborhoods averaging at least one start a month. The 44 subdivisions that meet these criteria make up 37% of total Triad activity measured by annual starts, and they have 411 inventory homes – 6.8 months-of-supply. These subdivisions have a 16.7 months-of-supply of vacant lot inventory, and many of the individual neighborhoods in this group are nearly built out. What this means for the Triad is price increases in higher demand subdivisions and a spreading out of activity to other neighborhoods with room for growth in similar locales. This is already happening, and the broadening out of the market is already taking place, and as long as job growth continues to be recorded in the region, the pace of growth in these neighborhoods is expected to continue.

For information contact: Jay Colvin @ 919- 314-0420
Email jcolvin@metrostudy.com

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.

Is Activity in the South…Going South?

Posted in Atlanta Market, Central Florida Market, Charlotte Market, Dallas - Ft. Worth Market, Houston Market, Jacksonville Market, Naples - Ft. Myers Market, National Housing Market, Northern Virginia Market, Raleigh - Durham Market, Rio Grande Valley Market, San Antonio Market, Sarasota - Bradenton Market, Suburban Maryland Market, Tampa Market, The Triad Market | Posted on 08-04-2014 | Written by Brad Hunter

The brad hgovernment release on housing starts for June showed a sharp decline, concentrated in what the Census Bureau defines as “The South.”  Single-family starts were down in June by 9.0% from the previous month, and down 4.3% from twelve months earlier.  Within that number, almost all the decline was in the South, down 20.1% versus the previous month and down 14.5% versus a year ago.

Rumors of the South’s demise are greatly exaggerated.

Read Full Article and See Quarterly SFD Starts

 

 

 

 

Triad Job Growth Continues to Spur New Home Gains

Posted in The Triad Market | Posted on 03-01-2014 | Written by Metrostudy News

(Triad, NC – March 1, 2014) The job gains that the region has realized over the past twelve months have been huge for the housing industry. However, for a sustainable recovery, job growth needs to maintain its current pace. In order for the excess housing supply to be reduced, the region will need to experience greater job growth rates, as well as increased rates of population growth. 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 503 quarterly starts in 4Q13 was a 9.3% increase compared to the 460 starts in 4Q12. The 546 quarterly closings in 4Q13 was a 1.3% increase from the 539 homes closed in 4Q12. “The crossover of annual starts over annual closings – which was first seen in last quarter’s numbers – is a key indicator of the housing market improvements that the Triad has undergone. Now that new construction activity has increased, realizing demand in the form of closings will be the next step in confirming whether or not the recovery is here to stay,” said Jay Colvin, Regional Director of Metrostudy’s Triad market. Annual Starts (the sum of the past four quarters) of 2,071 were observed in the Triad in 4Q13, an increase of 352 units (+20.5%) from 4Q12. Annual closings of 1,917 in 4Q13 was an increase of 76 homes from 4Q12.

Total inventory, which includes model homes, finished vacant homes (no visible sign of occupancy), and homes under construction, totaled 1,553 units in 4Q13. Based on the closing pace over the past 12 months, the Triad now has a 9.7-months’ supply of new homes. Metrostudy considers a range of 6-7 months to be a balanced market. The 585 finished vacant homes on the ground in 4Q13 represent a 3.7 months’ supply, and is down 8.1% from 4Q12. “As standing inventory in higher activity locations decline, under construction inventory has increased slightly to meet demand,” said Colvin. The 898 homes under construction in 4Q13 represent a 5.6 months’ supply, and is a 29.2% increase from 4Q12.

The 11,938 lots on the ground in the Triad in 4Q13 are 8.9% fewer than the number of lots on the ground in 4Q12. This represents a 69.2-months’ supply at the current monthly start rate. Even though this figure is well above the 18-24-month range that Metrostudy considers equilibrium for lot supplies, shortages of lots in the highest demand location are starting to show up, and that has driven limited new lot production. 910 lots were delivered to the market over the past 4 quarters. Those lots have been added to currently active neighborhoods which have maintained or increased sales over the past few quarters.

“The oversupply of lots, many of which are bank owned or in the default process, has aided in resetting the price for lots, helping builders offer homes priced to reflect market demand. As higher activity neighborhoods near build out, existing lots offer a cost effective replacement alternative to new lot production, and allow builders to keep cost in line with market demand,” said Colvin.

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.

North Carolina Triad Housing Market Rebounding

Posted in Raleigh - Durham Market, The Triad Market | Posted on 12-20-2013 | Written by J.W. Colvin IV

The Piedmont Triad in North Carolina has had a tough run the last decade. The region’s employment base has been hit hard by the move of textile and furniture companies – which drove the local economy for years – overseas. The lack of job creation has hit the housing market especially hard, but the lights are starting to flicker on.

Job creation is finally starting to perk back up. Over the twelve months ending in August, the three MSAs that comprise the area known as the Triad (Greensboro-High Point/Winston-Salem/Burlington) have added an astounding 11,200 jobs across. The gains have been spread across most sectors, with the largest gains in the Trade, Transportation, and Utilities sector. Unemployment has also made strides, now firmly below 10% at 9.1%. North Carolina’s state unemployment rate is 9.1% also.

Housing production has follow suit. Preliminary results from our proprietary third quarter market audit showed tremendous growth. Trailing four quarter starts are up 27% over the same period last year. Move-ins (observed closings) of new homes, which naturally lags starts, has increased 9% higher than last year. At the same time, finished vacant new homes, a key indicator of inventory health, has fallen 12% from the same time last year.

The increases in activity are concentrated in the highest demand pockets of the Triad, in communities with higher relative amenities within the best school districts as one would expect in this phase of a local market recovery, and builders in the market are still being very cautious about expansion in product and community offerings – a positive sign in this analyst opinion – but the signs of growth are certainly encouraging in a market that has been in hard times for a very long time.

Triad Job Growth Spurring New Home Gains

Posted in The Triad Market | Posted on 11-01-2013 | Written by Metrostudy News

(Triad, NC – November 1, 2013) The job gains that the Triad has realized over the past twelve months have been huge for the housing industry. 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 Triad’s three MSAs (Winston-Salem, Greensboro-High point, and Burlington) added a combined 11,200 jobs over the twelve months ending in August. “That’s the most jobs since March 2007, and a big reason why we’ve seen such an increase in new home construction over the past few months,” said Jay Colvin, Regional Director of Metrostudy’s Triad market. Annual Starts (the sum of the past four quarters) of 2,031 were recorded in the Triad in 3Q13, an increase of +26.8% over last year at this time.

Total inventory, which includes model homes, finished vacant homes (no visible sign of occupancy), and homes under construction, totaled 1,593 units in 3Q13. Based on the closing pace over the past 12 months, the Triad now has a 10-months’ supply of new homes. Metrostudy considers a range of 6-7 months to be a balanced market. The 550 finished vacant homes on the ground in 3Q13 represent a 3.4 months’ supply, and is down 11.9% from 3Q12. “The Triad still has some left over inventory from the downturn, most of which is in the foreclosure process. The way we count inventory, those unoccupied homes are inventory even though most new home buyers don’t want to buy a foreclosure,” said Colvin, “When you take out the long standing inventory, and just look at new construction, the inventory picture is a lot brighter, and the new home gains are warranted.”

“The Triad is clawing its way back, there is still a long road ahead, but we’re making progress and the future is getting brighter,” said Colvin.

For information contact:
Jay Colvin @ 919.461.9618
jcolvin@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 Triad New Home Market Showing Gains

Posted in The Triad Market | Posted on 08-14-2013 | Written by Metrostudy News

(Triad, NC – August 14, 2013) The Triad New Home market is firming up. 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 Bureau of Labor Statistics, and the North Carolina Department of Employment Security, the Triad has added 7,400 jobs for the 12 months ending in June. “Unemployment remains high, so any job gains are a welcomed sight. In order for a sustain recovery the Triad must maintain job growth, which would bring the jobless rate down and increase consumer confidence,” said Jay Colvin, Regional Director of Metrostudy’s Triad market.

Annual Starts (the sum of the past four quarters) of 1,799 were recorded in the Triad in 2Q13, an increase of 5.3% from 2Q12. Annual Closings were 1,853 in 2Q13. “Closing more homes than constructed in a year shows that we are still working through excess inventory from the boom years,” said Colvin,” but that gap is getting smaller, and greater new home construction will need to take place to meet demand moving forward. We are starting to see that take place.” The 552 quarterly starts in 2Q13 was a 31.7% increase compared to the 419 starts in 2Q12. The 502 quarterly closings in 2Q13 was an 8.9% increase from the 461 homes closed in 2Q12.

The 540 finished vacant homes on the ground in 2Q13 represent a 3.5 months’ supply, and is down 20.6% from 2Q12. As standing inventory in higher activity locations decline, under construction inventory has increased slightly to meet demand. The 828 homes under construction in 2Q13 represent a 5.4 months’ supply, and is a 15.6% increase from 2Q12. “New Home construction today is almost entirely driven by presold homes. The increase in homes under construction is a reflection of increased sales taking place over the past several months,” said Colvin, “and the local markets slow but steady recovery.”

For information contact:
Jay Colvin @ 919.461.9618
jcolvin@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.

Triad new home market shows signs of growth despite headwinds

Posted in The Triad Market | Posted on 05-01-2013 | Written by Metrostudy News

(Triad, NC – May 1, 2013) While the Triad new home market is operating in less than ideal economic circumstances, the new home market continues to make strides toward recovery. 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.

“New job growth hasn’t been realized at a level to spur a big gain in new home construction, so new home growth in the region is going to have to rely on currently employed and households moving to the area that are not employment sensitive for home construction to show the gains that you are seeing in other parts of the,” said Jay Colvin, Metrostudy’s Regional Director for Triad and Raleigh/Durham Markets.

Annual starts of 1,682 were recorded in the Triad in 1Q13, an increase of 56 units (+3.4%) from 1Q12. Annual closings were 1,813 in 1Q13 a decrease of 39 homes from 1Q12. The 356 quarterly starts in 1Q13 was an 11% decrease compared to the 400 starts in 1Q12. The 351 quarterly closings in 1Q13 was a 7.4% decrease from the 379 homes closed in 1Q12. “The process of reducing inventory continues, and before greater production gains can be realized, new home inventory throughout the market must be reduced. More jobs in the region would be a good start,” sail Colvin.

Inventory totaled 1,413 homes in 1Q13. Based on the closing pace over the past 12 months, the Triad now has a 9.4-months’ supply of new homes. Metrostudy considers a range of 6-7 months to be a balanced market. “As standing inventory in higher activity locations decline, under construction inventory has increased slightly to meet demand, so there is a bit of a disconnect between the headline number and what builders are working with” said Colvin.

Some development of new lots has taken place over the past year, even though the region has a relatively high supply of lots for new home construction. “The highest demand subdivisions are running low on lots, and since that is where buyers want to live, the builders are adding more lots to those communities,” said Colvin.

For information contact:
Jay Colvin @ 919.461.9618
email: jcolvin@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.

02/20/2013: Metrostudy – Fonville, Morisey & Barefoot President’s Breakfast

Posted in Events, Raleigh - Durham Market, The Triad Market | Posted on 02-19-2013 | Written by J.W. Colvin IV

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Fonville, Morisey & Barefoot President’s Breakfast

Wednesday, February 20, 2013

WHERE MacGregor Downs Country Club 430 St Andrews Ln Cary, NC 27511

AGENDA 8:30 a.m. – 11:00 a.m.

SPEAKER Jay Colvin - Metrostudy’s Regional Director of Raleigh and Triad Markets

jay c

Triad New Home Market Making Strides

Posted in The Triad Market | Posted on 02-07-2013 | Written by Metrostudy News

(Triad, NC – February 7, 2013) The Triad new home market continues to make progress towards recovery thanks to job gains and household formation, 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 Triangle and US housing market.

According to the Bureau of Labor Statistics, and the North Carolina Department of Employment Security, the Triad added 6,500 jobs for the 12 months ending in December. It is the 23nd straight month of year over year job gains for the region. The pace of growth is picking up steam, growing at 1.1% from last year. Unemployment stubbornly remains high, and Metrostudy believes that in order for more robust new home demand, job gains must accelerate, and the jobless rate needs to improve at a much faster rate than it is currently.

Annual starts of 1,717 were recorded in the Triad in 4Q12, an increase of 134 units (+8.5%) from 4Q11. Annual closings were 1,845 in 4Q12 a decrease of 146 homes from 4Q11. The 456 quarterly starts in 4Q12 was a 32.6% increase compared to the 344 starts in 4Q11. The 540 quarterly closings in 4Q12 was an 18.7% increase over the 455 homes closed in 4Q11. “The consistent increase quarter to quarter in new home starts in 2012 is a strong indicator that the Triad new home market is finding its footing,” said Jay Colvin, Director for Metrostudy’s Triangle Region.

Total inventory, which includes model homes, finished vacant and homes under construction, totaled 1,419 units in 4Q12. Based on the closing pace over the past 12 months, the Triad now has a 9.2- MOS of new homes. Metrostudy considers a range of 6-7 months to be a balanced market. Finished Vacant inventory continues its multiyear decline. The 627 finished vacant homes on the ground in 4Q12 represent a 4.1 months’ supply, and is down 23.3% from 4Q11.” As standing inventory in higher activity locations decline, under construction inventory has increased slightly to meet demand,” said Colvin.  The 698 homes under construction in 4Q12 represent a 4.5 months’ supply, and is a 16.5% increase from 4Q11. “The increase in new construction is a strong sign that builders are seeing an uptick in buyer confidence,” said Colvin.

“Jobs are coming back to the Triad and this is good for all sectors of the local economy. It is especially good for the housing industry because folks have to have a job before they consider buying a house. In a region that has been on a long road to recovery it is exciting to see some sustained positives. We expect these gains to continue and for more positive signs to emerge in the new housing sector in the Triad region,” said Colvin.

For information contact:
Jay Colvin @ 919.461.9618
email: jcolvin@metrostudy.com

About Metrostudy

Metrostudy is the leading provider of primary and secondary market information, and consulting services 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.