Triangle New Home Starts and Closings UP; Inventory at 13 Year Low
(Raleigh, NC– May 9, 2012) The Triangle’s new home market is still in recovery mode, 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 Triangle and US housing market.
1,458 new homes began construction in the Triangle in 1Q12, up 10.7% from 1Q11. Closings were also up. According to Metrostudy 1,395 new homes were closed pm in 1Q12, up 11.7% from 1Q11. “Closings continue to outpace new home starts, and thus inventory has continued to be reduced across the region,” said Jay Colvin, Director for Metrostudy’s Triangle Region.
Total inventory of homes in all stages of construction – Models, Under Construction, and Finished Vacant – was reduced to 4,053 homes on the ground as of 1Q12, or 8.6% lower than the same time a year ago. At the current closings pace, these units represent an 8.1-month supply of homes, which is the Triangle’s 13 year average. Finished Vacant homes are at a 13 year low with 1,795 homes on the ground. “The reduction in inventory is critical for buyers and sellers. Fewer homes available for purchase means prices are starting to stabilize, and in a few instances, this is enabling builders to increase the base asking price for new homes,” said Colvin.
“The majority of new homes under construction today, are pre-sold, meaning that homes are being built for a specific buyer who has already made the decision to buy that home. So the actual number of ‘for sale’ new homes is very low,” comments Colvin. “The sense of urgency created by lower supplies, and in some cases higher prices, is something that the housing market has been waiting a long time for, and is a really good sign that the market is getting back on solid footing.”
For information contact:
Jay Colvin @ 919.461.9618
Metrostudy Director Triangle Region
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data collected by a staff of 650, the company is recognized for its consulting expertise on development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.