Charlotte’s new housing market continues to improve despite slow job growth

Posted in Charlotte Market, In The News | Posted on 10-26-2012 | Written by Metrostudy News

(Charlotte, NC–October 26, 2012) Charlotte’s new housing market continues to show improvement in starts and closings while inventory supplies are becoming low in many areas, 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.

Nationally there was a huge 873,000 job gain in the household survey for September and the unemployment rate dropped to 7.8% down from 8.1% in August. The unemployment rate has been decreasing for the past three months even though payroll job growth showed only a modest improvement. “This disconnect creates doubt about what the current jobs numbers are saying about the economy,” said Bill Miley, director of Metrostudy’s Charlotte division.

The 3Q12 starts were 28.2% higher than the 1,501 quarterly starts from a year ago in 3Q11. Charlotte’s annualized starts (rolling four quarters) as of 3Q12 increased to 6,289 making six consecutive quarters of increasing annual starts. Annualized Starts peaked in 1Q07 at 24,997. Charlotte’s 3Q12 closings totaled 1,732 units, 30 more than last quarter. “The small quarterly increase in closings was primarily fueled by low finished inventory supplies that were available to close. The 6,275 Annualized 3Q12 closings for all product types increased from last quarter’s year over year total and are 9.2% higher than annual closings recorded one year ago. Annual Closings peaked in 2Q07 at 24,519,” said Miley.

Total inventory of new homes (detached, town homes, and condos) in all stages of construction (Model Homes + Finished Vacant + Under Construction) increased to 3,814 in 3Q12 from last quarter’s 3,621 and increased inventory supply to 7.3-months. “This was expected due to the increase in homes Under Construction and the shrinking Finished Inventory numbers,” said Miley. A 6-8 month supply of inventory is considered to be in equilibrium.

“Despite weak job growth, Charlotte’s housing market shows positive signs of steady slow improvement. Resale closings are up as well as new housing starts and closings. The Charlotte MSA currently ranks tenth in the country in single family permits, further testimony to the desirability, appeal and strength of our local market. 90% of Charlotte’s annual starts are detached housing and inventory supplies are well within equilibrium at 6.7 months. The new housing market will show much stronger growth as more new jobs are created and Charlotte’s 9.7% unemployment rate declines, said Miley.

For information contact:
bill miley @ 704.650.7584
email bmiley@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

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