The Triangle New Homes Making a Comeback

Posted in National Housing Market, Raleigh - Durham Market | Posted on 11-06-2012 | Written by J.W. Colvin IV

(Raleigh, NC–November 6, 1012) Triangle New Home activity continues to show signs of improvement, according to a recent report by Metrostudy, a national housing information and consulting firm that maintains the most extensive primary database on residential construction in the Triangle and US housing market.

For the third quarter ending September 2012, the Triangle started 2,156 units; a 36% increase over the number of homes started in 3Q11 (1,586). Quarterly Closings totaled 1,829 units a 13.6% gain over the 1,610 closings surveyed in 3Q11. Annual closings and starts are the sum of the past four quarters. The 6,527 annual starts surveyed through the end of 3Q12 was a 21% gain from the 3Q11, when the total was 5,394 starts. The annual closings figure of 6,457 was 10% more than the 5,857 through 3Q11.” Consecutive quarters of year over year gains in both annual starts and annual closings continue to give strength to the case that the housing market has turned the corner,” said Jay Colvin, Director for Metrostudy’s Triangle Region.

Total inventory of homes in all stages of construction was surveyed at 4,433 units on the ground, only 69 more homes than in 3Q11. At current closing pace, these units represent only 8.2- months’ supply of homes, consistent with the Triangle’s 14 year average of new home inventory. Finished Vacant inventory now stands at 1,501 units (2.8 months’ supply), a record low. Under Construction inventory is increasing as builders move to meet to meet demand, increasing from 2,172 units in 3Q11, to 2,681 units in 3Q12 (+23.4%). “Fewer finished vacant units continue to drive construction growth, while helping to create a sense of urgency in buyers,” said Colvin.

“Demand for housing across the market remained strong for all of 2012. The spring season was widely regarded among market participants as one of the strongest in several years, and the follow through seen in the summer and early fall months has further supported that claim. These positive trends are expected to continue resulting in the market gains in the future,” said Colvin.

For information contact:
Jay Colvin @ 919.461.9618
jcolvin@metrostudy.com
Metrostudy Director Triangle Region

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

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