When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.
Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.
The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.
In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :
U.S. Housing Starts Fall More Than Forecast (BusinessWeek)
December Housing Starts Are Worse Than Expected (Fox Business)
Now, although these headlines are factually true, they’re also are a little bit misleading.
Housing Starts didfall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in Massachusetts or anywhere else nationwide.
For the fourth straight month, the National Association of Homebuilders reports an increase in its Housing Market Index. The index climbed 4 points to 25 this month — its second four-point gain since October.
With home sales activity increasing across all four regions, the monthly HMI has now nearly doubled in value since June 2011.
The HMI is now at a 55-month high.
The Housing Market Index itself is a composite reading; the result of three home builder surveys sent by the National Association of Homebuilders to its members monthly. Home builders report back on current single-family home sales volume; projected single-family home sales volume for the next 6 months; and current (more…)
Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.
In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.
The drop does not appear to be seasonal, either.
Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011’s annual foreclosure rate was the lowest in 4 years.
One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.
In fact, among the country’s top 10 states for foreclosure (more…)
What is Social Media and how can it help you as a Realtor®?
On Thursday, February 9, 2012 our office will host an informative seminar on Social Media and how it can benefit your real estate business.
The seminar will be presented by Matt Ward of inConcert Web Solutions. Mr. Ward will help you understand the value of Facebook, Twitter, Linkedin and other social media and how it can build or break your business.
Read more about the seminar and register here. Seating is limitted to 45 of our Business Partners and guests. A lite lunch will be available at the conclusion of the presentation.
Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.
The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.
Mortgage rates are down, too, and that’s good news for buyers in Leominster. The combination of low rates and low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.
understand the value of Facebook, Twitter, Linkedin and other social media and how it can build or break your business.