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The NAHB released its latest Housing Market Index March 18^th and it showed a much sunnier outlook on behalf of builders when compared with this time last year. The component in the Housing Market Index representing builder traffic jumped three points in March to 35 and the component reflecting sales expectations from builders increased one point to 51. A total score of the three components over 50 denotes that more builders view market conditions as good versus poor. Overall builder confidence slipped two points to 44 making it the third consecutive month of decreases.

NAHB chairman Rick Judson pointed to logistical issues such as the lack of availability of lots and the cost of materials as two of the reasons for the builders concern. The skilled trades manpower component also played a part in this latest decline in the Housing Market Index. NAHB chief economist David Crowe was quoted as stating “During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots.” Indeed, after the market began to crash many employees of builders, even entire companies were forced to look elsewhere for employment. Whether it was layoff of personnel or smaller builders shuttering their doors to explore other options such as commercial construction, the new home industry lost significant depth in this area.

Another concern of US homebuilders reflected in the Housing Market Index is the persistence of credit availability being limited for some consumers. Gone are the days of stated income loans, and consumers are wary of variable interest rate and interest only loans. The criteria are strict even for well qualified buyers now. This has not gone unnoticed by the homebuilding community. Even with the increased demand for new construction, the Housing Market Index for March sends the clear message that there are still hurdles in the path to a full housing recovery.

For more information on First Preston HT visit our website at FirstPrestonHT.com.

The March Housing Starts Summary shows privately-owned housing starts increased to a seasonally adjusted annual rate of 917,000, up 0.8 percent over January’s estimate and up more than 27 percent year over year.

The February Housing Starts Summary demonstrates a continuation of the trend seen over the past two years—rising prices, increased housing starts and permits, with decreased time on market for resale homes. In short, the housing comeback is gaining steam and on track for future growth. Consumers and builders alike are taking notice.

Single-family
Home construction starts for February increased 0.5 percent over January’s numbers to an annual rate of 618,000; a year over year increase of 31.5 percent.

Multi-Family
The rate of starts for buildings with five or more units was 285,000, up from last February 2012’s numbers of 233,000.

Housing Completions
The rate of completions for single-family homes was 574,000, an increase of 3.6 percent, per the Housing Starts Summary. This is another key indicator of overall demand in the housing market.

Building Permits
The Housing Starts Summary also noted an increase in privately-owned housing permits of 4.6 percent above the January rate to 946,000, which exceeds last February’s estimate by 33.8 percent.

Single –family permits increased 2.7 percent over January’s numbers.

While buyers look to builders for homes, builders express some frustration amid all the consumer demand. NAHB Chairman Rick Judson stated that builder’s enthusiasm is “tempered by frustrating bottlenecks in the supply of developed lots and rising costs of building and labor.” Two concerns Judson mentioned include below market appraisals and credit availability. Although the conditions for borrowers and builders might not be perfect, several elements contributing to growth and demand are in place. A key factor influencing homebuyers to purchase new construction is the shortage of inventory in the resale market. Inventory has continued to decrease across the country in the majority of metros. The February Housing Starts Summary showed modest month-over-month gains and strong year-over-year gains. The big picture is clear: demand for new homes is on the rise.

For more information about First Preston HT, please visit FirstPrestonHT.com.

“Kind Words Can Be Short and Easy to Speak, But Their Echoes Are Truly Endless.”—Mother Teresa

The United States Postal Service (USPS) has established a dedicated P.O. Box for those who want to share a note of encouragement to people in Newtown, CT.

After a major tragedy we wonder if there is anything we can do to really help, and often feel powerless to connect in a meaningful way. If you want to share a message of hope and support with residents Newtown, CT, the postal service is offering an option.

They have made special arrangements to receive and distribute cards and letters bearing condolences and words of encouragement at the following address to first responders and families of shooting victims. Please share this blog with friends, relatives and associates. The goal is to blanket residents of Newtown with words of comfort and support.

The address is: P.O. Box 3700, Newtown, CT 06470.

Feel free to send cards, notes and letters.  The USPS does not require an addressee name for this special P.O. Box.

HOW WILL THEY MANAGE IT?

According to a report in the Business News Daily, the postal service is dispatching additional workers to assist with the processing during what is traditionally their busiest season of the year.

Local community group volunteers are partnering with the USPS to ensure distribution. They will assist in monitoring content to ensure that only appropriate material is shared with recipients.

WORTH THE EFFORT

As a nation we send fewer letters via the US Postal Service, preferring the immediacy of email or texting. This opportunity invites us to slow down a moment and invest in helping a grieving community to heal. Let’s generate an endless echo of comfort.