Archive for Market Statistics
Indy tops in home affordability – still!
Posted by: | CommentsMay 20, 2010 – Nationwide housing, bolstered by favorable interest rates and low house prices, hovered for the fifth consecutive quarter near its highest level of affordability since the series was first compiled 19 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.
The HOI showed that 72.2 percent of all new and existing homes sold in the first quarter of 2010 were affordable to families earning the national median income of $63,800, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter a year ago.
“Today’s report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within reach of more households than it has for almost two decades,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy.”
Indianapolis-Carmel and Youngstown-Warren-Boardman, Ohio-Pa., shared the ranking as the most affordable major housing markets in the country. In Indianapolis, which has held this top ranking for nearly five years, almost 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,700. In Youngstown, the same percentage of homes were affordable to households earning a median $53,500.
Indy ranks as most affordable housing market – again
Posted by: | CommentsNationwide housing affordability, bolstered by favorable interest rates and low house prices, closed out the year near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.
Indianapolis again was the most affordable major housing market in the country during the fourth quarter, a position the metro area now has held for four and a half years. More than 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,100.
The HOI showed that 70.8 percent of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter of 2009. Affordability during the final quarter of the year was up from 62.4 percent during the fourth quarter of 2008.
“Favorable mortgage rates and sliding house prices that have now started to stabilize nationally have both contributed to a record year for housing affordability in 2009,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels and the economy beginning to rebound, the federal housing tax credit will encourage even more first-time and repeat home buyers to enter the market and help further stabilize housing and the economy by creating new jobs, stimulating home sales and reducing foreclosures.”
Also near the top of the list of the most affordable major metro housing markets were Detroit-Livonia-Dearborn, Mich.; Dayton, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; and Akron, Ohio.
Five smaller housing markets posted even higher affordability scores than Indianapolis, with Kokomo, Ind., which historically has had a favorable income-to-house price ratio, outscoring all others. In Kokomo, 98 percent of homes sold during the fourth quarter of 2009 were affordable to median-income earners. Other smaller housing markets near the top of the index included Monroe, Mich.; Flint, Mich.; Lima, Ohio; and Bay City, Mich., respectively.
New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the fourth quarter of 2009. The New York metro area has occupied this position for seven consecutive quarters. Slightly less than 20 percent of all homes sold during the final quarter of 2009 were affordable to those earning the New York area’s median income of $64,800.
The other major metro areas near the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Redwood City, Calif.
San Luis Obispo-Paso Robles, Calif. was the least affordable of the smaller metro housing markets in the country during the fourth quarter. Others near the bottom of the chart included Santa Cruz-Watsonville, Calif.; Ocean City, N.J.; Napa, Calif.; and Santa Barbara-Santa Maria-Goleta, Calif.
Please visit www.nahb.org/hoi for tables, historic data and details.
Indy still tops in home affordability
Posted by: | CommentsNovember 19, 2009 – Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.
The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.
“At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices.”
Indianapolis was the most affordable major housing market in the country during the third quarter, a position the metro area now has held for 17 consecutive quarters. Almost 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,100.
Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa., and three Michigan metropolitan areas, Detroit-Livonia-Dearborn; Warren-Troy-Farmington Hills; and Grand Rapids-Wyoming.
Five smaller housing markets posted even higher affordability scores than Indianapolis, with Kokomo, Ind. outscoring all others. There, 96.7 percent of homes sold during the third quarter of 2009 were affordable to median-income earners. Other smaller housing markets near the top of the index included Springfield, Ohio; Bay City, Mich.; Mansfield, Ohio; and Elkhart-Goshen, Ind.
New York-White Plains-Wayne, N.Y.-N.J., was the nation’s least affordable major housing market during the third quarter of 2009, the New York metro area’s sixth consecutive appearance at the bottom of the list. Slightly more than 19 percent of all homes sold during the third quarter were affordable to those earning the New York area’s median income of $64,800.
The other major metro areas near the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Nassau-Suffolk, N.Y.
San Luis Obispo-Paso Robles, Calif. was the least affordable of the smaller metro housing markets in the country during the third quarter. Others near the bottom of the chart included Ocean City, N.J.; Santa Cruz-Watsonville, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.
Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR’S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.
Central Indiana has seen the devastating fallout of housing downturn
Posted by: | CommentsJanuary 30, 2009
Dear Editor:
There is one important element missing from the landmark economic stimulus package now being assembled on Capitol Hill. Little attention has been given to solving the devastating impact of the housing downturn, which is a significant reason that the financial crisis continues to escalate at an alarming rate. Over the past couple of years, more than 3 million jobs in construction and related fields have been lost nationwide, $3.5 trillion of home equity has evaporated, and home sales and production have plunged to record lows. The collapse of the housing market eventually resulted in the financial meltdown and credit crunch we saw last fall and now has spilled over into the general economy with devastating results.
Here in Central Indiana, we are seeing firsthand the devastating fallout of the housing downturn. At the peak of housing in 2005, there were 13,202 homes built in the Central Indiana region. Just 3 years later in 2008, we have built only 4,566- a 65% decrease. In the year of construction, the net decrease of 8,636 single family homes built in the Indianapolis region would result in an estimated $1.1 billion in lost local income, $88.8 million in lost tax and other revenue for local governments and 21,503 fewer jobs locally (almost twice the number of jobs as Indianapolis’ largest employer).
Congress must fix this fundamental problem in order to put the economy back on the path to growth and prosperity. At the same time as our lawmakers work to reduce mortgage foreclosures, they must provide incentives that will bring home buyers back into the marketplace. Providing a home buyer tax credit that could be applied toward a downpayment would be an obvious stimulus to encourage consumers to confidently purchase a home. Based on the affordability of local housing prices, the credit would provide more purchasing power in the local marketplace. The proposed $7,500 credit would go to all home buyers, with income limitations; and it would not need to be repaid. The credit would be available only until the end of this year, sending a strong signal to families who have been sitting on the fence that they need to act quickly to take advantage of this opportunity.
We are not asking for a bailout; rather, we are asking Congress to put money back in the hands of the consumer. America’s consumers and lenders won’t regain the confidence our economy so desperately needs until they see an end to the downward spiral in housing values. As history shows, housing is the sector that leads the economy out of recession. Congress must make meaningful provisions in the stimulus legislation that will enable housing to return to that role as quickly as possible.
Sincerely,
Pete Hils
President, Builders Association of Greater Indianapolis
Forbes names Indy one of 25 strongest housing markets
Posted by: | CommentsTo compile this list, they asked Moody’s Economy.com to look at metro areas with populations over 500,000 to find those closest to recovery. The firm prepared forecasts through 2011 and compared them to prices in the second quarter of 2008, which are the latest figures available, to calculate how far prices will likely fall before reaching bottom. The percent figures are price drops between second quarter 2008 and the projected bottom.
Indianapolis Metro
Population: 1,795,100
Bottom expected: late 2010
Forecast price change to bottom: -3.2%
MarketGraphics Housing Analysis Online
Posted by: | CommentsMarketGraphics Research has released their multiregional housing analysis for Janaury. The video (or pdf version) is free to view but you must register. Find the information online at www.mgresearch.net. The Builders Association of Greater Indianapolis has partnered with MarketGraphics for many years to conduct research on the Central Indiana new home market. Indianapolis specific research is available for a subscription fee through the Association. Contact Barbara Zoderer at 317-236-6330 for details.
November 2008 Indianapolis Area New Construction Permits
Posted by: | CommentsNovember residential permits down 47 percent from November 2007
Single-family permit activity in the Indianapolis nine-county area is down 47 percent in November compared to November of last year, according to figures compiled by the Builders Association of Greater Indianapolis. November permits numbered 264 compared to 500 for 2007.
Hamilton led the nine-county area in permit activity issuing 114 permits in November followed by Marion County at 55. All nine counties showed a decrease from last November -Hancock County down 82 percent, Boone County down 60 percent, Marion County down 58 percent, Johnson County down 49 percent, Madison County down 42 percent, Hamilton County down 37 percent, Hendricks County down 35 percent, Shelby County down 33 percent, and Morgan County down 30 percent.
