The Triangle New Home Market Momentum Continues
(Raleigh, NC – November 1, 2013) The Triangle’s new home market continued to experience gains in construction and sales. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
Over the twelve months, ending September 30th, the Triangle started construction on 8,748 new homes, which was a 35% gain from the same period a year ago, when the total was 6,479 starts. Closings were up 24.7% in that same period. “Construction growth has been strong, and even with more homes being built as specs [homes built without previously signed sales contract], inventory has held steady, and even decreased in some parts of the Triangle,” said Jay Colvin, Regional Director of Metrostudy’s Triangle operations, “That’s a great indicator of the strong demand for new homes in the region.”
Total Inventory (Models, Finished Vacant, and Under Construction homes) represents a 7.5-months’ supply of homes. Seven months’ of supply is the level Metrostudy considers equilibrium in the Triangle. From 4Q99 through 4Q04 the Triangle had an average months’ supply of 7.9- months’.
The 23,057 vacant developed lots in the Triangle in 3Q13 represent a decrease of 3,778 lots from the 26,835 lots surveyed in 3Q12. At the current absorption rate, these lots represent a 31.6- months’ supply – the lowest since 2Q08. “Finding available lots for new home construction is still an issue,” said Colvin, “add to that labor shortages in the construction industry, and you get higher prices…if you’re a buyer now is a good time to do so.”
“The Triangle housing market continues to show a lot of positives and signs of continued growth based on fundamental demand. These trends are expected to continue as the market moves out of the recovery mode and back into a traditional growth and pricing pattern,” said Colvin.
For information contact:
Jay Colvin @ 919.461.9618
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
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