NAHB Chief Economist, David Crowe...Multi-Family 54% of Twin Cities Housing Units Authorized 9.9%...
Transcript of NAHB Chief Economist, David Crowe...Multi-Family 54% of Twin Cities Housing Units Authorized 9.9%...
2011
2012
2013
2014
2015
Units Authorized Year-to-DateDecember 2011-2015SOURCE: KEYSTONE REPORT
HOTSHEET
“Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase. Builders are upping their inventory in response to height-ened consumer interest. Housing inventory is now at its highest level since October 2009.”
NAHB Chief Economist, David Crowe
[NAHB]
NAHB: 2015 New-Home Sales Reach Eight-Year High
Twin Cities Building Activity
[BATC]
Twin Cities Residential Construction Ends Year Slowly But Surely
Sales of newly built, single-family homes rose 14.5 percent to 501,000 units in 2015, the highest level since 2007, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, sales in December increased 10.8 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised November reading.
“The December sales report is a great end to a very strong year,” said Ed Brady, chairman of the National Association of Home Builders (NAHB)
and home builder and developer from Bloomington, Ill. “As we move forward in 2016, we should see the housing market continue to make lasting gains.”
“Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase,” said NAHB Chief Economist David Crowe. “Builders are upping their inventory in response to heightened consumer interest. Housing inventory is now at its highest level since October 2009.”
Sales increased in all four regions in December. The Midwest, West, Northeast and South all posted respective gains of 31.6 percent, 21 percent, 20.8 percent and 0.4 percent.
The inventory of new homes for sale was 237,000 units in December. This is a 5.2-month supply at the current sales pace.
Residential construction activity closed out the year on a flat note. Even with an eight percent boost in the number of permits pulled in December (over December 2014), overall permit numbers were down one-half-of-one percent compared to 2014.
According to data compiled by the Keystone Report for the
Builders Association of the Twin Cities (BATC), there were 386 permits issued for a total of 1,041 units during four comparable weeks in the month of December 2015. Year-to-date, there were 4,899 permits issued for a total of 10,208 units.
“While we had hoped to see a much stronger year in 2015, we continued to see new residential construction lag behind the existing housing market,” said Chris Contreras, the Builders Association of the Twin Cities 2015 President. “With the ruling just released by the Minnesota Supreme Court to let the Court of Appeals decision invalidating the expensive residential sprinkler
mandate stand, we are hopeful that more families will be able to afford their dream home in 2016.”
For the month, Plymouth issued the most permitted units at 215, followed by St. Louis Park with 200. Edina issued permits for 130 total units, Mahtomedi for 81 units and Shakopee rounded out the top five with 53 units permitted.
For 2015 as a whole, its no surprise Minneapolis took the top spot with 1,470 permitted units. Edina came in next with 604 units, followed by Blaine with 528 units, Plymouth with 492 units, and Minnetonka with 440 permitted units.
Single-family
Permits 8%Compared to
December 2014
“Builders are upping their inventory in response to
heightened consumer interest. Housing
inventory is now at its highest level since October
2009.”
NAHB Chief Economist David Crowe
“While we had hoped to see a much stronger year in 2015, we continued to see new residential construction lag behind the existing housing market. With
the ruling just released by the Minnesota Supreme Court to let the Court of Appeals decision invalidating the expensive residential sprinkler mandate
stand, we are hopeful that more families will be able to afford their dream home in 2016.”
Chris Contreras, 2015 President of the Builders Association of the Twin Cities
Plymouth
St. Louis Park
Edina
Mahtomedi
Shakopee
215
200
130
81
53
February 2016Volume IV, Issue: 2
Sponsored by:
December 2015 Top Cities
Permitted UnitsSOURCE: KEYSTONE REPORT
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Metro Building Units - Past 12 Months SOURCE: KEYSTONE REPORT
Oct
. 15
Nov
. 15
Dec
. 15
Dec
. 14
Jan.
15
Feb.
15
Mar
. 15
Apr
. 15
May
15
June
15
July
15
Aug
ust 1
5
Sept
. 15
Dec. 14
Dec. 14
Dec. 15
Dec. 15
YTD: 10,208
Multi-Family54%
of Twin Cities Housing Units
Authorized
9.9%Y-Y Change
21.8%Monthlychange
5.0%Y-Y Change
10,16612,997
2015 December Metro Building ActivityResidential construction activity closed out the year on a flat note. Even with an eight percent boost in the number of permits pulled in December (over December 2014), overall permit numbers were down one-half-of-one percent compared to 2014.
Twin Cities Total Active ListingsSOURCE: MPLS REALTORS
$200,000$219,900
Twin Cities Housing Units AuthorizedSOURCE: KEYSTONE REPORT
Twin Cities Median Home PriceSOURCE: MPLS REALTORS
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-40%Y-Y Change
21,8732015 YTD
16.03%Y-Y Change
1,178,1382015 YTD
Dec. 14Dec. 14
Dec. 15Dec. 15
MN Housing Units AuthorizedSOURCE: US CENSUS
US Housing Units AuthorizedSOURCE: US CENSUS
FuturesCurrent
MN Construction Employment SOURCE: DEED-MN
Twin Cities Construction Weekly Wage
SOURCE: DEED-MN
Twin Cities Construction Employment
SOURCE: DEED-MN
Dec
. 15
Aug
. 15
Sept
. 15
Oct
. 15
Nov
. 15
Employment
Regional/National Statistics
Minnesota’s job market ended the year adding about 9,000 jobs for the second consecutive month. The state had a net addition of 42,485 jobs for all of 2015, a 1.5 percent increase, though below the U.S. employment growth rate of 1.9 percent during the year.
Sales increased in all four regions in December. The Midwest,
West, Northeast and South all posted respective gains of 31.6
percent, 21 percent, 20.8 percent and 0.4 percent. The inventory of new homes for sale was 237,000
units in December. This is a 5.2-month supply at the current
sales pace.
Unemployment Rate SnapshotSOURCE: DEED-MN
MSP 2.7%December 15
3.2%December14
MN US 3.6%December 15
4.8%December 15
3.6%December 14
5.4%December 14
Remodeling Market
IndiciesSOURCE: NAHB 3Q
‘15
3Q ‘1
5
4Q ‘1
5
4Q ‘1
5
2Q ‘1
4
2Q ‘1
4
3Q ‘1
4
3Q ‘1
4
4Q ‘1
4
1Q ‘1
5
2Q ‘1
5
4Q ‘1
4
1Q ‘1
5
2Q ‘1
5
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30 Year
3.875%
30 Year Fixed FHA
15 Year
5 Year ARM
30 Year Jumbo
3.875%
3.25%
4.0%
3.5%
Mortgage Rates
FROM FEBUARY 1, 2016SOURCE: WELLS FARGO
Key IndicatorsCheap gas has freed up cash in many household budgets. The average price of gasoline fell below two dollars a gallon for the first time since March 2009, according to the Energy Department. The average household has about an additional $660 to spend this year because of cheaper gas.
MN Monthly Retail Gasoline Prices
SOURCE: ENERGY INFORMATION ADMIN
Aug. 15 Sept. 15 Oct. 15 Nov. 15 Dec. 15
Framing LumberSOURCE: NAHB