An index put out by the National Association of Home Builders (NAHB), which recognizes improving housing markets, now includes three times as many metro areas as it did from the same time a year before. The National Association of Home Builders/First American Improving Markets Index (IMI) has 247 metropolitan areas throughout the United States on its list.
Recent growth in the housing market can be shown in several ways. This includes a recent jump in home prices, which in April had the fastest year-over-year growth in seven years. Home owners that were previously underwater now have enough equity in their homes to finally find relief. Recent CoreLogic and S&P/Case Shiller data reports demonstrate this and show an improving U.S. market. The S&P/Case Shiller report showed growth of 2.5% in April in the top 20 markets in the U.S., which was the strongest period of growth for this index in its history.
According to the International Franchise Association, franchises are doing better than they ever have. The Franchise Business Index (FBI) increased by 0.3% to an all time high since the index has been recorded. The previous high had been set in 2007 before the financial crisis and shows a rebounding economy not only for the franchising industry but the overall American market as well.
Congratulations goes out to Jeff Gilly of Sacramento, CA and Andy Wallace of Los Osos, CA. Jeff and Andy have recently celebrated their 15th Year Anniversaries with National Property Inspections. Thanks guys for a great 15 years from NPI and GPI!
A recent index shows that America’s home builders are confident in the market. One category of the index rates builder outlook on the market for newly built, single-family homes rose 3 points. The category asking impressions of current sales condition also increased 3 points, while sales expectations increased by a point. This is the highest the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) has been in almost 8 years and this is its 4th month of a row with a gain.
Information from the Census Bureau and HUD shows that housing starts increased to by 5.9% in July. Construction of multifamily units is greatly helping these numbers with a 26% increase in July in just one month. This recent increase displays an improving American housing market and one where we can be confident that further progress will likely be made in the upcoming months.
In 87% of markets included in a recent National Association of Realtors (NAR) report, there were increases in median existing single-family home price. This is the strongest increase in seven and a half years for this NAR quarterly report. There was a 12.2% jump for the national median existing single-family home price year-over-year in the 2nd quarter of 2013. This is up to $203,500 from $181,300 the same time in 2012.
There is some positive news when it comes to the commercial real estate sector with vacancy rates dropping and rent growth increasing. Vacancy rates for offices are expected to decline to 15.5% in the 3rd quarter of 2014. There is also an expected 2.5% increase in rents in 2013. For the industrial sector there should be a drop to 8.7% vacancy in 2014 from this quarter’s 9.3%. Retail vacancies should go from 10.6% vacancy in the 3rd quarter of this year to 10.0% in the same time in 2014.
The NPI/GPI team would like to say congratulations to Dave McCone of Bellevue, WA. Dave has recently celebrated his 5th year of being a National Property Inspections business owner. Congratulations Dave!
According to data released by HUD and the U.S. Census Bureau, there was a 5.9% rise in housing starts in July. This brings housing starts up to a seasonally adjusted annual rate of 896,000 units. Much of the growth was in the multifamily unit sector.