Building Permits Extremely Weak, Continue to Fall

Published on September 23, 2011 by

Housing Starts 2009-2011

Home builders and housing permits are not looking very encouraging. Latest reports show that home builders are not very positive on the outlook for the housing economy now or in the near future.

It should come as no surprise that the lack of confidence by the home builders has resulted in less and less housing permits being requested and granted. Home sales have slowed down so much currently and there is very little incentive for builders to be taking risks with the current housing crisis.

With the foreclosures and the deep discounts on distressed properties there are very few that are willing to compete with a new home. Until we see an improvement in the housing market and clear recovery you likely won't see new homes springing up.

Now if you are custom building and hiring out a builder then you are likely going to get a great deal and the builders don't take as many risks with a custom build job. Don't count on seeing too many new homes that are built on speculation in hopes that the perfect buyer will come by and purchase the home that is available.

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If you have any questions about the current status of the housing market and how you may be able to benefit from the buyers market then simply call toll free (866) 825-6261. There is a great opportunity for purchasing and refinancing with the record breaking low interest rates of today.


Housing Starts Lower While Permits Slightly Increase

Published on August 17, 2011 by

Housing Starts 2009-2011

The housing market is definitely in the dumps. Every part of the market is down, disappointed and not expecting any changes soon, meaning within the next couple of years. The only part of the industry that is improving is the financing side. With interest rates hitting all-time lows the applications for refinancing has picked up significantly.

The latest report which may altogether be completely worthless is the Housing Starts.  The results showcased an improvement of 4.9% with a margin of error at 8.9% so we won’t really know what is happening until several months down the road when they revise the data.

Perhaps the best way for you to know what is happening in your area is to simply observe as you go about your day. For example in my area I’m very surprised if I see a new construction project and it’s been many months since I’ve noticed any single family structures.

The reports are also saying that building permits were slightly higher and this is what was reported:

  • Northeast : +2.9 percent from June
  • Midwest : +0.0 percent from June
  • South : -1.4 percent from June
  • West : +4.9 percent from June

Permits are issued and usually have a good indication as to what the new home market may look like since majority of them will actually break ground and start building within a short time period. Bottomline is simply that the housing market stinks unless you are fortunate enough to qualify for a refinance during this difficult time or you work in the finance sector.

Housing Starts Ramp Up For Fall Season

Published on July 20, 2011 by


Single-family housing starts

First builder confidence was up and now they are backing it up with an increase in housing starts. The builders must be planning on a upcoming holiday sale or figured out how to build homes much cheaper. The report shows that Housing Starts increased to 453,000 which is a 9 percent spike and the busiest they have been in over 3 seasons.

For some reason the home builders are anticipating quite a few more sales even though the inventory available continues to increase with additional foreclosures. In addition to more inventory the foreclosures are dragging down the values of homes as well.

For those that are looking to purchase a home at this time with the great value and interest rates you should first get your finances in order and contact a loan officer so you may act quickly and effectively.

Housing Starts Increase Slightly But Remain Extremely Low

Published on June 17, 2011 by

Housing Starts (2009-2011)

The housing market has been in the dumps for years now and we are all hoping and looking for signs of hope. Well, here is a small glimmer that things may be improving and not continuing to get worse. I mean nobody knows if we have hit the floor yet.

The housing starts increased this month unexpectedly and although it was slight it was still an improvement. Yes, overall things are still very low but maybe this is the start of movement in a positive direction and hopefully not just an unexpected bump.

The slight improvement is 4 percent to a seasonally-adjusted, annualized rate of 419,000 units and just a little bit better then the 6 month average although the 6 month average is a very low target to surpass.

The reason why this may be a sign of a positive direction and hopefully some recovery in the housing market is that the Building Permits were also up so that is an indication that we could see more improvements in the future.

This report was a surprise to many since it was recently reported that home builder confidence is at its lowest reading since September 2010. Additionally, home sales are slow and many are going to investors who are simply picking up discounted and distressed homes. It doesn’t make a lot of sense for new homes to compete with much of the existing inventory.

If you are looking to capitalize on the low prices and low interest rates contact a loan officer right away and be prepared to move quickly and effectively regardless if you look to purchase a new home or an existing home. Once you are prepared financially you can move forward confidently.

Building Permits Disappearing Quicker Then Expected

Published on May 18, 2011 by

Housing Starts (May 2009-April 2011)

It is becoming a growing concern that the building permits are dropping so quickly and unexpectedly. The Single-Family housing starts was down by 21,000 in comparison to last year this time.

Yes, there is plenty of available housing with the most recent boom but some economists are growing concerned that there will be a future bubble based on the population expectations. The stats are reported by the U.S. Department of Commerce.

This year the stats are showing a five percent drop in housing starts compared to last year and last year was not a banner year at all. The results of the report are worse than Wall Street was anticipating. This marks the 2nd year in a row where housing starts are below 400,000 units.

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Building permits are issued by local government so it's an easy thing to track and report on. When the permits are down the housing starts are down, usually a house will start construction within 60 days of being issued the permit.

If you are set on purchasing a new home this year then know that the supply will be low as most of the available homes for sale and that are selling are existing homes. If you have questions simply reach out to a loan officer and be prepared to act quickly and effectively when purchasing your new home. There is a lot of hope that the market is recovering and they point towards the increased foot traffic shopping, low mortgage rates and some job growth.

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Anyway you choose to look at things currently it is easy to grasp the concept that home affordability is really good right now. If you are employed and you qualify it's a great time to purchase a home. Contact a loan officer today for your free consultation.


Nationwide Building Permits On The Rise

Published on April 20, 2011 by

Housing Starts (Apr 2009 - Mar 2011)

The latest report from the Census Bureau shows that single-family Housing Starts are on the rise nationwide, increasing 8 percent over February's 2-year low.

While this all sounds good and promising keep in mind that this is the second straight month where the margin of error is 15 percent which is actually more than the reported measurement.

This is all very humorous considering that written in the footnotes, there's no “statistical evidence to conclude that the actual change [in Housing Starts] is different from zero.”

So, in reality the report even though it's slow and already out dated it's really worthless since the margin of error is so wide. We won't know for several months down the road what the accurate figures are. This is coming in a day after home builders have reported that their sentiment is down nationwide.

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The real value of this information will come when more data is gathered and the report is revised. For instance this past February the housing starts were revised higher by 4.5%.

The latest Census Bureau's report included information that the Building Permits were up in March in comparison to February by 6% nationwide. Statistically once a building permit is issued it will start construction within 60 days.

Building Permits increased in all four regions this past month:

  • Northeast : +2.6 percent from February
  • Midwest : +10.0 percent from February
  • South : +5.3 percent from February
  • West : +5.3 percent from February

If you are looking for a new home the timing is great with house prices and interest rates low. If you have any questions your first step is to contact your loan officer.


Housing Starts Plummet In February

Published on March 18, 2011 by

Housing Starts (March 2009 - Feb 2011)

Sellers are welcoming the news that housing starts are down for the month in the latest report. With less housing starts there will be less competition for those who are looking to sell their existing homes.

The drop in housing starts was completely unexpected. Nationwide the housing starts fell by 12 percent from the previous month. There was an even bigger drop in housing starts if you compare to last year it’s a drop of 29 percent.

This latest report represents the worst 1 month drop in housing starts since May 2010 and that ended up being a 24 month low. Additionally Building Permits plunged as well by 9 percent from the previous month.

For any home buyers that were looking to purchase a new home this year this news should impact your decision. With less homes being built and available you can expect the builders to have a bit more leverage in negotiations.

Home prices are always based on supply and demand and the latest reports will definitely be a positive for home builders. Interest rates are expected to continue to rise although there has been a slight dip due to recent geopolitical issues and natural disasters.

The current market reflects that home affordability is high with low prices and low mortgage rates. If you would like free assistance in planning your mortgage future simply contact a loan officer today.

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Building Permits Surge In December; Signals A Strong Spring Housing Market

Published on January 20, 2011 by

Housing Starts 2007-2010

Each month, in conjunction with the Department of Housing and Urban Development, the Census Bureau releases its New Residential Construction report. The report is comprised of several sections, one of which counts the number of homes that have “broken ground” nationwide.

They’re called “Housing Starts” and, by most measures, they faded quickly as 2010 came to a close.

According to the Census Bureau’s report, Housing Starts of single-family homes fell to 417,000 units on a seasonally-adjusted, annual basis. The figure marks a 9 percent drop-off from November, and is the lowest reading since May 2009.

Not surprisingly, the press went bearish on housing post-release:

  • U.S. Home Building Stuck Near 50-Year Lows (AFP)
  • Housing Starts Slowed Sharply In December (New York Times)
  • Housing Starts Fall In December To One-Year Low (Bloomberg)

Despite being truthful, these headlines are somewhat misleading. They each ignore a key element of December’s New Residential Construction report — Building Permits. Building Permits rose 6 percent to an 8-month high last month.

A building permit is a local-government certification that authorizes home construction.

Permits are a precursor to Housing Starts with 82% of homes starting construction within 60 days of permit-issuance. More permits in December, therefore, should lead to more Housing Starts in January and February.

It’s unclear whether permits were up because the economy was improving, or because builders raced to beat new building code for 2011. Regardless, expect additional “new home” supplies this spring which would ordinarily help home prices drop if not for the normal surge in spring buyers to gobble those new homes up.

Look for home prices to stay flat, but with rising mortgage rates contributing to higher costs of homeownership overall.