Posted in Charlotte Market | Posted on 05-04-2012 | Written by Metrostudy News
(Charlotte, NC– May 4, 2012) Most economists agree that conditions are in fact improving. The same can be said about Charlotte’s new housing market according to recent information from Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
North Carolina’s unemployment rate decreased to 9.7% from February’s 10.4%. March unemployment data for the Charlotte MSA has not been released but registered a decline from 10.4% in January to 10.0% in February. Charlotte’s 2012 job growth has been less than robust. “Improving economic conditions, yes, but frustratingly slow. Actual new first quarter housing data makes for a much better story,” said Bill Miley, director of Metrostudy’s Charlotte division.
Charlotte started 1,308 homes in 1Q12, the same as last quarter’s, however, 1Q12 starts were 34.7% higher than the 971 quarterly starts from a year ago in 1Q11. Quarter over quarter annualized starts have increased in each of the last four quarters and now stand at 5,467. Charlotte closed 1,416 new homes in 1Q12, 17 more than last quarter and 26% more than first quarter, one year ago.
Excluding Uptown’s condominiums, new housing inventory for all product types has declined for the past nine quarters and currently stands at a seven-month supply. A seven to eight month supply of inventory in all stages of construction is considered to be in equilibrium. Clearly, Charlotte does not have an excess of new housing inventory.
Single family detached homes in Charlotte now account for 90.0% of all new housing starts, an increase of 16.3% over the past eight quarters. Lower detached new home sales prices have increased the affordability and desire for detached housing. Detached housing inventory is at 6.3 months of supply while finished vacant is at a 2.8 monthly supply. These supply levels of detached inventory are on the low side of equilibrium and suggest additional housing starts will soon be needed.
“Charlotte is number nine in the country among MSA’s in single-family permits. Our new housing market is improving slowly, but the key to a robust recovery continues to be jobs. As long as job growth remains suppressed, demand for new homes and resales will also remain weak. We have said on many occasions that Charlotte has a ‘demand’ problem, not a ‘supply’ problem,” said Miley.
For information contact:
bill miley @ 704.650.7584
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.