The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB) today, remained steady with an index level of 52. It is the third straight quarter with a reading over 50.
The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, was essentially unchanged in the third quarter, only dropping two points from 54 in the second quarter.
The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale" units, or condominiums. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse. In the third quarter of 2012, the MPI component tracking builder and developer perceptions of market-rate rental properties recorded a level of 69 and has been over 60 for five consecutive quarters—the longest sustained period of strength since the inception of the index in 2003. For-sale units had its highest reading since the fourth quarter of 2005, coming in at 44, while low-rent units dropped 15 points to 46.
“The market-rate apartment and condo markets continue to improve as household formations generate demand,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “As young households find sustainable employment, most are renting in new apartment communities.”
The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry's perception of vacancies, dropped three points 33. With the MVI, lower numbers indicate fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI declined consistently through 2010 and has been at a fairly low level throughout 2011 and 2012.
“The multifamily market has recovered substantially since the end of 2010, and now stands at about 70 percent of the way back to a sustainable level. Our baseline forecast calls for further steady growth in the rate of multifamily production,” said NAHB Chief Economist David Crowe. “However, there are reasons for concern, especially at the affordable end of the rental apartment market, where builder confidence dropped dramatically in the third quarter. That was likely due to a specific provision of the Low-Income Housing Tax Credit set to expire at the end of the year. The prospect of dealing with this is making lower-rent projects difficult to underwrite. Ongoing deficit-reduction negotiations in Congress need to address this issue, or a serious shortage of affordable rental housing may develop.”
Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.
For data tables on the MPI and MVI, visit www.nahb.org/mms.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Tuesday, December 11, 2012
Greenville makes Improving Markets Index for Seventh Consecutive Month
For the seventh consecutive month, the Greenville Metropolitan Statistical Area (Pickens, Greenville, and Laurens counties) made NAHB's Improving Markets Index. As a result, according to the index, Greenville's housing market has been improving now for 13 consecutive months. And overall, the number of improving markets grew by 76 to 201.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A total of 84 new metros were added to the list; 44 states and the District of Columbia are now represented on the index. Newly added metros include such geographically diverse locations as Atlanta, Ga.; Ann Arbor, Mich.; Seattle, Wash.; and Columbia, SC.
In South Carolina, Greenville, Anderson, Spartanburg, Columbia, and Florence are now all listed on the Improving Markets Index. According to the index, the bottom of the market in South Carolina was as early as March 2009 (Columbia) and as late as March 2011 (Anderson). The bottom of the market in Greenville was September 2010.
“The big gain in improving markets this December indicates that key measures of housing and economic strength have now been holding steady or improving in metros across the country for six months or more, which is an important signal of stability amidst the slowly emerging recovery,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “The main thing that’s limiting the progress we’re seeing right now is the difficulty that potential buyers continue to experience with regard to overly tight mortgage qualifying standards.”
“This fourth consecutive month of expansion in the IMI, coupled with the fact that well over half of all metro areas are now represented on the list, is in keeping with the upward trends that we’ve been seeing all year in terms of housing starts and sales, builder confidence and other measures,” noted NAHB Chief Economist David Crowe. “In general, we expect the overall housing recovery to continue expanding in 2013. However, that is absent a major policy change of the kind that some policymakers have been discussing with regard to the mortgage interest deduction.”
“The dramatic expansion of improving markets at the end of this year should help encourage consumers who may have been on the fence about a home purchase that a housing recovery is now firmly underway,” added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.
A complete list of all 201 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in December, is available at www.nahb.org./imi.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A total of 84 new metros were added to the list; 44 states and the District of Columbia are now represented on the index. Newly added metros include such geographically diverse locations as Atlanta, Ga.; Ann Arbor, Mich.; Seattle, Wash.; and Columbia, SC.
In South Carolina, Greenville, Anderson, Spartanburg, Columbia, and Florence are now all listed on the Improving Markets Index. According to the index, the bottom of the market in South Carolina was as early as March 2009 (Columbia) and as late as March 2011 (Anderson). The bottom of the market in Greenville was September 2010.
“The big gain in improving markets this December indicates that key measures of housing and economic strength have now been holding steady or improving in metros across the country for six months or more, which is an important signal of stability amidst the slowly emerging recovery,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “The main thing that’s limiting the progress we’re seeing right now is the difficulty that potential buyers continue to experience with regard to overly tight mortgage qualifying standards.”
“This fourth consecutive month of expansion in the IMI, coupled with the fact that well over half of all metro areas are now represented on the list, is in keeping with the upward trends that we’ve been seeing all year in terms of housing starts and sales, builder confidence and other measures,” noted NAHB Chief Economist David Crowe. “In general, we expect the overall housing recovery to continue expanding in 2013. However, that is absent a major policy change of the kind that some policymakers have been discussing with regard to the mortgage interest deduction.”
“The dramatic expansion of improving markets at the end of this year should help encourage consumers who may have been on the fence about a home purchase that a housing recovery is now firmly underway,” added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.
A complete list of all 201 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in December, is available at www.nahb.org./imi.
Frances Marian Watts Giles
Frances Marian Watts Giles, wife of Past President Lex Giles and former Executive Vice President Wesley Giles, died December 2, 2012. She was 94.
From the Greenville News: Frances Marian Watts Giles, 94, Greenville, at 5:18 p.m., Sunset, December 2, 2012, embarked on her Sunset Cruise to join husband "Lex", and many family and friends.
Her "Bon Voyage" was celebrated with her daughters, son, and daughter-in-law by her side. With a "Bright Smile" she departed from Rolling Green, always enriching others with many kind words, fond moments and countless memories. She is survived by a son and daughter-in-law: William Wesley and Teresa Giles of Greenville, SC; two daughters Lucile Alexis "Luci" Giles Williams of Greenville, SC, and Eleanor Eugenia "Genie" Giles Perry of Columbia, SC; two grandchildren: Edward Eugene "Ward" Williams IV of Houston, TX and Alexis Giles Williams of Chattanooga TN. She was predeceased by her husband: Ira Alexis "Lex" Giles Jr. and mother: Ella Outlaw Watts.
She was born in Georgetown, SC, and lived in Murrells Inlet, SC. She moved to Greenville prior to World War II and completed Business College. After graduating she was employed with Scurry-Nixon Co., in the Accounting Department and Cooper Motor Lines in the Finance Dept. While raising her family, she also joined her husband, Lex, in the family Real Estate-Development & Investment Business for 40 years. Frances was a member of Second Presbyterian Church.
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| Frances Marian Watts Giles |
Her "Bon Voyage" was celebrated with her daughters, son, and daughter-in-law by her side. With a "Bright Smile" she departed from Rolling Green, always enriching others with many kind words, fond moments and countless memories. She is survived by a son and daughter-in-law: William Wesley and Teresa Giles of Greenville, SC; two daughters Lucile Alexis "Luci" Giles Williams of Greenville, SC, and Eleanor Eugenia "Genie" Giles Perry of Columbia, SC; two grandchildren: Edward Eugene "Ward" Williams IV of Houston, TX and Alexis Giles Williams of Chattanooga TN. She was predeceased by her husband: Ira Alexis "Lex" Giles Jr. and mother: Ella Outlaw Watts.
She was born in Georgetown, SC, and lived in Murrells Inlet, SC. She moved to Greenville prior to World War II and completed Business College. After graduating she was employed with Scurry-Nixon Co., in the Accounting Department and Cooper Motor Lines in the Finance Dept. While raising her family, she also joined her husband, Lex, in the family Real Estate-Development & Investment Business for 40 years. Frances was a member of Second Presbyterian Church.
Friday, December 7, 2012
Real Estate Commission Issues New Residential Property Condition Disclosure Statement
The S.C. Real Estate Commission has issued a new Residential Property Condition Disclosure Statement. The new form was issued November 28, 2013, and is effective and must be in use on or before January 1, 2013.
The form applies to all single-family homes and buildings up to four dwelling units. However, the use of the form is NOT REQUIRED when the transfer involves the first sale of a home that has never been inhabited.
Major changes to the form include the addition of Question 13 to disclose individual repairs in excess of $500 to the systems disclosed in the form, as well as the addition of questions 27-40 related to disclosure of property restrictions.
You may download the form and the list of exemptions at llronline.com by clicking here.
UPDATE:
The S.C. Real Estate Commission acted December 18 to grandfather any current listings. The new form will apply only to listings added on or after January 1, 2013. The new form also applies to listings that expire and are renewed in 2013. Remember new construction is exempt from the requirement to use the Seller Disclosure Form.
The form applies to all single-family homes and buildings up to four dwelling units. However, the use of the form is NOT REQUIRED when the transfer involves the first sale of a home that has never been inhabited.
Major changes to the form include the addition of Question 13 to disclose individual repairs in excess of $500 to the systems disclosed in the form, as well as the addition of questions 27-40 related to disclosure of property restrictions.
You may download the form and the list of exemptions at llronline.com by clicking here.
UPDATE:
The S.C. Real Estate Commission acted December 18 to grandfather any current listings. The new form will apply only to listings added on or after January 1, 2013. The new form also applies to listings that expire and are renewed in 2013. Remember new construction is exempt from the requirement to use the Seller Disclosure Form.
HBA of Greenville welcome's new members!
We would like to welcome new Associate members DPS LLC- James McCarter
and The Haro Group of Keller Williams- Haro Setian, also Builder
Affiliate members Carter Barksdale and Wayne Smith both of Dan Ryan
Builders.
Welcome!
Welcome!
Tuesday, December 4, 2012
Rep. Bruce Bannister Elected S.C. House Majority Leader
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| Majority Leader Bruce Bannister |
The Majority Leader is the leader of the Republican Caucus in the S.C. House.
Monday, December 3, 2012
Duke Energy Security Deposit Procedure Released
Beginning in February 2013, Duke Energy will review internal credit history for all builders, property managers, landlords and realtors when they request new electric service. If a customer has not established a satisfactory credit history – or has no credit history – a security deposit will be required before new service can be established. In addition, builders, property managers, landlords and realtors must settle any unpaid obligations prior to establishing new electric service accounts. Our credit evaluation is based on regulatory guidelines.
Security will not be required when satisfactory credit history has been established.
An account has a satisfactory credit history if electric service has been active for more than 12 consecutive billing months, and during the past 12 months:
Security will not be required when satisfactory credit history has been established.
An account has a satisfactory credit history if electric service has been active for more than 12 consecutive billing months, and during the past 12 months:
- Service has never been disconnected for nonpayment of the bill.
- There have been no more than two past due bills.
- There have been more than two past due bills.
- Service was disconnected for nonpayment of the bill.
- Residential permanent service for builders, property managers, landlords and realtors : $50
- Non-residential permanent service for builders, property managers, landlords and realtors:
- If contract demand is less than or equal to 15 kilowatts (kW): $100
- If contract demand is between 16 kW and 30 kW: $200
- If contract demand is greater than or equal to 31 kW: The security amount will be determined based on kilowatt load and assessment of the customer’s credit.
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