NAHB Chief Economist, Robert Dietz · Chief Economist Robert Dietz. Single-family and multifamily...
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2012 2013 2014 2015 2016 Units Authorized Year-to-Date April 2012-2016 SOURCE: KEYSTONE REPORT HOT SHEET “ough housing construction data is relatively flat for the beginning of 2016, we anticipate a ramping up of housing production during the rest of the year, given a strengthen- ing job market, low mortgage interest rates and favorable demographics.” NAHB Chief Economist, Robert Dietz [NAHB] NAHB: Housing Starts Up 6.6 Percent in April Twin Cities Building Activity [BATC] Twin Cities Residential Construction Continues Modest Climb Nationwide housing starts rose 6.6 percent to a seasonally adjusted annual rate of 1.17 million in April, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance was also up 3.6 percent to a seasonally adjusted annual rate of 1.12 million. “This month’s modest rise in housing production is consistent with builder sentiment, which has remained steady and in positive territory in recent months,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “Though housing construction data is relatively flat for the beginning of 2016, we anticipate a ramping up of housing production during the rest of the year, given a strengthening job market, low mortgage interest rates and favorable demographics,” said NAHB Chief Economist Robert Dietz. Single-family and multifamily production each registered gains in April. Single-family housing starts rose 3.3 percent to a seasonally adjusted annual rate of 778,000 units while multifamily starts increased 13.9 percent to 394,000 units. Combined single- and multifamily starts were mixed in April, rising 22.2 percent in the Midwest and 14.1 percent in the South. The Northeast posted a 7.6 percent loss and the West registered a 10 percent loss. Single-family permits increased 1.5 percent to a rate of 736,000 while multifamily permits rose 8 percent to 380,000. All four regions posted permit increases in April. The Northeast, Midwest, South and West posted respected gains of 3 percent, 3.3 percent, 3.3 percent and 4.7 percent. Year to date 2016 is off to the strongest start for number of residential construction permits pulled since 2007. Single-family production continued its upward trend with a three percent increase year-to-date. Multifamily production picked up in April with the help of several large projects, making up 42 percent of total activity for the year. According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 383 permits issued for a total of 788 units during four comparable weeks in the month of April 2016. “This is the upward trend that we were hoping to see this year,” said Meg Jaeger, the Builders Association of the Twin Cities 2016 President. “With the Twin Cities existing housing inventory at a record low, we believe this upward trend in new construction will continue.” “It’s a tough housing market for first time homebuyers right now. We’re seeing rapidly rising home prices and the regulatory burden is still pricing many would-be buyers out of the market, “ said BATC Executive Director, David Siegel. For the month, Minneapolis issued the most permitted units at 243, followed by Prior Lake with 178. Blaine and Lakeville issued permits for 23 total units, rounding out the top five were Plymouth and Otsego both with 19 units permitted. Single-family Permits 3% Compared to April 2015 “This month’s modest rise in housing production is consistent with builder sentiment, which has remained steady and in positive territory...” NAHB Chairman, Ed Brady “It’s a tough housing market for first time homebuyers right now. We’re seeing rapidly rising home prices and the regulatory burden is still pricing many would-be buyers out of the market.” David Siegel, BATC Executive Director Minneapolis Prior Lake Blaine Lakeville Plymouth/ Otsego 243 178 23 23 19 June 2016 Volume IV, Issue: 6 Sponsored by: April 2016 Top Cities Permitted Units SOURCE: KEYSTONE REPORT LOVE INDUSTRY DATA & NEWS? FOLLOW THE BATC DAILY BLOG AT BATC.ORG
Transcript of NAHB Chief Economist, Robert Dietz · Chief Economist Robert Dietz. Single-family and multifamily...
2012
2013
2014
2015
2016
Units Authorized Year-to-DateApril 2012-2016SOURCE: KEYSTONE REPORT
HOTSHEET
“� ough housing construction data is relatively � at for the beginning of 2016, we anticipate a ramping up of housing production during the rest of the year, given a strengthen-ing job market, low mortgage interest rates and favorable demographics.”
NAHB Chief Economist, Robert Dietz
[NAHB]
NAHB: Housing Starts Up 6.6 Percent in April
Twin Cities Building Activity
[BATC]
Twin Cities Residential Construction Continues Modest Climb
Nationwide housing starts rose 6.6 percent to a seasonally adjusted annual rate of 1.17 million in April, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance was also up 3.6 percent to a seasonally adjusted annual rate of 1.12 million.
“This month’s modest rise in housing production is consistent with builder sentiment, which has remained steady and in positive territory in recent months,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.
“Though housing construction data is
relatively fl at for the beginning of 2016, we anticipate a ramping up of housing production during the rest of the year, given a strengthening job market, low mortgage interest rates and favorable demographics,” said NAHB Chief Economist Robert Dietz.
Single-family and multifamily production each registered gains in April. Single-family housing starts rose 3.3 percent to a seasonally adjusted annual rate of 778,000 units while multifamily starts increased 13.9 percent to 394,000 units.
Combined single- and multifamily starts were mixed in April, rising 22.2 percent in the Midwest and
14.1 percent in the South. The Northeast posted a 7.6 percent loss and the West registered a 10 percent loss.
Single-family permits increased 1.5 percent to a rate of 736,000 while multifamily permits rose 8 percent to 380,000.
All four regions posted permit increases in April. The Northeast, Midwest, South and West posted respected gains of 3 percent, 3.3 percent, 3.3 percent and 4.7 percent.
Year to date 2016 is o� to the strongest start for number of residential construction permits pulled since 2007. Single-family production continued its upward trend with a three percent increase year-to-date. Multifamily production picked up in April with the help of several large projects, making up 42 percent of total activity for the year.
According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 383 permits issued for a total of 788 units during four comparable weeks in the month of April 2016.
“This is the upward trend that we were hoping to see this year,” said Meg Jaeger, the Builders Association of the Twin Cities 2016 President. “With the Twin Cities existing housing inventory at a record low, we believe this upward trend in new construction will continue.”
“It’s a tough housing market for fi rst time homebuyers right now. We’re seeing rapidly rising home prices and the regulatory burden is still pricing many would-be buyers out of the market, “ said BATC Executive Director, David Siegel.
For the month, Minneapolis issued the most permitted units at 243, followed by Prior Lake with 178. Blaine and Lakeville issued permits for 23 total units, rounding out the top fi ve were Plymouth and Otsego both with 19 units permitted.
Single-family
Permits 3%Compared to
April 2015
“This month’s modest rise in housing
production is consistent with builder sentiment,
which has remained steady and in positive
territory...”NAHB Chairman,
Ed Brady
“It’s a tough housing market for � rst time homebuyers right now. We’re seeing rapidly rising home prices and the regulatory burden is still pricing many would-be buyers out of the market.”
David Siegel, BATC Executive Director
Minneapolis
Prior Lake
Blaine
Lakeville
Plymouth/Otsego
243
178
23
23
19
June 2016Volume IV, Issue: 6
Sponsored by:
April 2016Top Cities
Permitted UnitsSOURCE: KEYSTONE REPORT
LOVE INDUSTRY DATA & NEWS?FOLLOW THE BATC DAILY BLOG AT BATC.ORG
B U I L D E R S A S S O C I A T I O N O F T H E T W I N C I T I E S : : H O T S H E E T : : J U N E 2 0 1 6 : : B A T C . O R G
Metro Building Units - Past 12 Months SOURCE: KEYSTONE REPORT
Nov
. 15
Dec
. 15
Jan.
16
Feb.
16 Mar
. 16
Apr
. 16
Apr
. 15
May
15
June
15
July
15
Aug
. 15
Sept
. 15
Oct
. 15
Apr. 15
Apr. 15
Apr. 16
Apr. 16
YTD: 2,431
Multi-Family23%
of Twin Cities Housing Units
Authorized
7.0%Y-Y Change
-19.0%Monthlychange
74.0%Y-Y Change
12,84915,947
2016 April Metro Building ActivityYear to date 2016 is o� to the strongest start for number of residential construction permits pulled since 2007. Single-family production continued its upward trend with a three percent increase year-to-date. Multifamily production picked up in April with the help of several large projects, making up 42 percent of total activity for the year.
Twin Cities Total Active ListingsSOURCE: MPLS REALTORS
$215,000$231,500
Twin Cities Housing Units AuthorizedSOURCE: KEYSTONE REPORT
Twin Cities Median Home PriceSOURCE: MPLS REALTORS
B U I L D E R S A S S O C I A T I O N O F T H E T W I N C I T I E S : : H O T S H E E T : : J U N E 2 0 1 6 : : B A T C . O R G
40.11%Y-Y Change
5,5412016 YTD
-4.9%Y-Y Change
361,9192015 YTD
Apr. 15Apr. 15
Apr. 16Apr. 16
MN Housing Units AuthorizedSOURCE: US CENSUS
US Housing Units AuthorizedSOURCE: US CENSUS
FuturesCurrent
MN Construction Employment SOURCE: DEED-MN
Twin Cities ConstructionWeekly Wage
SOURCE: DEED-MN
Twin Cities Construction Employment
SOURCE: DEED-MN
Apr
. 16
Dec
. 15
Jan.
16
Feb.
16
Mar
. 16
Employment
Regional/National Statistics
Minnesota employers added 15,600 jobs in April, a huge monthly gain. Still, the state's 12-month job growth continues to lag the nation. Job growth in the state rose 1.1 percent from a year ago, compared with a 1.9 percent growth rate nationally.
New U.S. single-family home sales surged to a more than eight-year
high in April and prices hit a record high, o� ering further evidence of a
pick-up in economic growth early in the second quarter. Regionally, home
purchases leapt 53 percent in the Northeast and 19 percent in the West.
They fell 5 percent in the Midwest and jumped 16 percent in the South.
Unemployment Rate SnapshotSOURCE: DEED-MN
MSP 3.4%
April 16
3.3%April 15
MN US 3.8%
April 16 4.7%
April 16
3.6%April 15
5.1%April 15
Remodeling Market IndiciesSOURCE: NAHB
4Q ‘1
5
4Q ‘1
5
1Q ‘1
6
1Q ‘1
6
3Q ‘1
4
3Q ‘1
4
4Q ‘1
4
4Q ‘1
4
1Q ‘1
5
2Q ‘1
5
3Q ‘1
5
1Q ‘1
5
2Q ‘1
5
3Q ‘1
5
Twin Cities Home Builders SurveySOURCE: UNIVERSITY OF ST. THOMAS & BUILDERS ASSOCIATION OF THE TWIN CITIES
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B U I L D E R S A S S O C I A T I O N O F T H E T W I N C I T I E S : : H O T S H E E T : : J U N E 2 0 1 6 : : B A T C . O R G
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Information is for real estate professionals only and is not intended for distribution to consumers. Information is accurate as of date of printing and is subject to change without notice.Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2015 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1400279 Expires 08/2016
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Trim Size6 x 5.25
30 Year
3.875%
30 Year Fixed FHA
15 Year
5 Year ARM
30 Year Jumbo
3.75%
3.125%
3.125%
3.625%
Mortgage RatesFROM MAY 31, 2016
SOURCE: WELLS FARGO
Key IndicatorsDrivers getting ready for summer road trips will experience less pain at the pump this season, compared to 2015, as federal energy o� icials are predicting the lowest summer gas prices since 2004. Softwood lumber prices rose 2.7% in April, reaching their highest reading since February 2015.
MN Monthly Retail Gasoline Prices
SOURCE: ENERGY INFORMATION ADMIN
Dec. 15 Jan. 16 Feb. 16 Mar. 16 Apr. 16
Framing LumberSOURCE: NAHB
