The Home Buyer's Korner

Information presented should be used for educational purposes only.

January 23rd, 2015

Guy looking up in color

New Home Starts for December 2014

New Home Sales

Groundbreakings for single-family homes in December signaled a renewed hope that the housing market is picking up steam after years of malaise.  Back in the 1990’s new homes accounted for about 700,000 home sales, while today we saw just 399,000 new home sales in the first 11 months of 2014. Housing starts peaked at a rate of 2.27 million in January 2006 before crashing below 500,000 in the depths of the great recession.

Housing starts rose 4.4 percent in December from a month earlier to an annual rate of 1.089 million. Home starts on single-family homes, which exclude apartments and the bulk of the market, rose to a rate of 728,000.  That’s the highest level since March 2008. Economists expected overall housing starts to reach a rate of 1.04 million for December and building permits to hit a pace of 1.06 million.

Building permits for single-family homes climbed 4.5 percent and the biggest increase since September 2012. Permits for all private housing, however, fell 1.9% to an annual rate of 1.032 million and permits are the bellwether for construction activity in the months ahead.

c20_curr

The home construction market remains choppy and housing starts data is a moving target with many revisions, but December’s jump in construction followed a sizeable drop in November starts and good news overall with an 8.8 percent rise for 2014.

December usually marks a traditionally smaller volume of construction starts. Most home builders are paying more attention on closing home sales before the end of the year.  Let’s keep our fingers crossed that December’s numbers points to more builders gearing up for a robust spring selling season. With mortgage rates at historical lows and industry leaders paying attention to relaxing mortgage approval guidelines we could be in good shape a real housing recovery in 2015.

Five years out from the great recession home construction is still weak and much of the weakness is related directed to stagnant wage increase and home affordability after 2013/2013 share price increases, but both price increases and interest rates have fallen.

The average rate for a 30 year fixed rate mortgage fell this week to the lowest level since spring 2013 and borrowing costs should prompt more Americans to buy homes.  New home sales have underperformed and many Americans have opting for cheaper existing homes. 

Other signs point to an uneven housing recovery, but home builders remain optimistic. A measure of builder optimism slipped in January from December, but remained at levels suggesting the industry remains hopeful about a recovery.

Existing Home Sales fell to a six-month low in November, but up 2.1 percent from the same time in 2013. December’s figure, out later today is expected to show existing homes sale to rise 3 percent.

HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will have the option

to “Create A Printable PDF of the Presentation”.

JOIN OUR REAL ESTATE SOCIAL MEDIA NETWORK

The Home Buyer's Korner

Real Estate Marketing Blogs and Coaching

Short Sale Real Estate Agent Marketing Blogs & Coaching

Distressed-Real-Estate-Marketing-Blogs-Coaching Updated

Mortgage Lenders Social Media Marketing Blogs

Loan Officer Marketing Blogs and Coaching

General Contractors Renovation Network

LINKEDIN

Twitter

PINTEREST

Facebook Group 2

Join us at Real Estate Social

Comments are closed.