The National Association of Home Builder’s Multifamily Production Index (MPI) increased one point to a level of 55 for the second quarter. This is the 14th consecutive quarter with a reading of 50 or above.
The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
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 MPI component tracking low-rent units stayed steady at 54, while market-rate rental units increased one point to 60 and for-sale units rose three points to 53.
“The multifamily market continues to perform quite well, and we expect that trend to continue,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “The market is benefitting from new household formations. As these households are formed, many are choosing to live in apartments or condos.”
The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perception of vacancies, dropped two points to 34, with lower numbers indicating fewer vacancies. This is the lowest reading since the fourth quarter of 2012.
“The MVI has shown three straight quarters of declines and the Census’ vacancy rate is the lowest it has been since 1984,” said NAHB Chief Economist David Crowe. “These are very good indicators of the overall health of the multifamily market. However, developers in certain parts of the country are experiencing lot and labor shortages, which can hinder production.”
Historically, the MPI and MVI have performed well as leading indicators of 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 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.
Thursday, August 27, 2015
FHFA: Mortgage Rates Rise in July
Nationally, interest rates on conventional purchase-money mortgages increased from June to July, according to several indices of new mortgage contracts.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.02 percent for loans closed in late July, up 17 basis points from 3.85 percent in June.
The average interest rate on all mortgage loans was 4.01 percent, up 16 basis points from 3.85 in June.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.20 percent, an increase of 16 basis points from 4.04 in June.
The effective interest rate on all mortgage loans was 4.17 percent in July, up 18 basis points from 3.99 percent in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
The average loan amount for all loans was $304,600 in June, down $21,000 from $325,600 in June.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.02 percent for loans closed in late July, up 17 basis points from 3.85 percent in June.
The average interest rate on all mortgage loans was 4.01 percent, up 16 basis points from 3.85 in June.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.20 percent, an increase of 16 basis points from 4.04 in June.
The effective interest rate on all mortgage loans was 4.17 percent in July, up 18 basis points from 3.99 percent in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
The average loan amount for all loans was $304,600 in June, down $21,000 from $325,600 in June.
Tuesday, August 25, 2015
Builder Breakfast Wednesday, September 9th! Sponsored by Progress Lighting
Don't miss out on the insider details from this meeting.
Please RSVP by Friday, September 7th, by calling the HBA office at 864-254-0133 or emailing HBA of Greenville
We look forward to seeing you there!
SMC Panel Discussion Event- September 3rd. 8:30-10 a.m.
Come out to our Panel Event on September 3rd.
Hosted and sponsored by Jeff Lynch!
This is a free event for SMC members.
Breakfast is included for this event, we will also be accepting new school supplies for Greenville County Schools.
Hosted and sponsored by Jeff Lynch!
This is a free event for SMC members.
Breakfast is included for this event, we will also be accepting new school supplies for Greenville County Schools.
Don't miss out- Learn More, Earn More!
FHFA: U.S. House Prices Rise 1.2 Percent in Second Quarter
U.S. house prices rose 1.2 percent in the second quarter of 2015 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This is the 16th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. FHFA's seasonally adjusted monthly index for June was up 0.2 percent from May. House prices rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015.
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.
"Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards," said FHFA Principal Economist Andrew Leventis. "Although too early to tell whether it's a sign of a slowdown, the monthly appreciation rate in June was more modest than we have seen in a while."
The seasonally adjusted, purchase-only HPI rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015, while prices of other goods and services fell 1.4 percent. The inflation-adjusted price of homes thus rose approximately 6.9 percent over the latest year.
Significant Findings
Most statistics in the attached release reference price changes computed by FHFA's basic "purchase-only" HPI. In some cases, however, the reported statistics reference alternative price measures. FHFA publishes – and makes available for download – three additional varieties of home price index beyond the basic "purchase-only" series. Although they all use the same basic methodology, the three alternatives rely on slightly different datasets in index estimation.
The alternative measures include:
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.
"Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards," said FHFA Principal Economist Andrew Leventis. "Although too early to tell whether it's a sign of a slowdown, the monthly appreciation rate in June was more modest than we have seen in a while."
The seasonally adjusted, purchase-only HPI rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015, while prices of other goods and services fell 1.4 percent. The inflation-adjusted price of homes thus rose approximately 6.9 percent over the latest year.
Significant Findings
- Home prices rose in every state between the second quarter of 2014 and the second quarter of 2015. The top five areas in annual appreciation: 1) Colorado – 10.6 percent, 2) Nevada – 10.5 percent, 3) Florida – 9.7 percent, 4) Hawaii – 9.5 percent, and 5) Washington – 8.8 percent.
- Among the 100 most-populated metropolitan areas in the U.S., four-quarter price increases were greatest in San Francisco-Redwood City-South San Francisco, CA (MSAD), where prices increased by 18.3 percent. Prices were weakest in the Allentown-Bethlehem-Easton, PA-NJ, where they fell -1.1 percent.
- Of the nine census divisions, the South Atlantic division experienced the strongest increase in the second quarter, posting a 1.7 percent quarterly increase and a 6.1 percent increase since last year. House price appreciation was weakest in the Middle Atlantic division, where prices were flat in the second quarter.
Most statistics in the attached release reference price changes computed by FHFA's basic "purchase-only" HPI. In some cases, however, the reported statistics reference alternative price measures. FHFA publishes – and makes available for download – three additional varieties of home price index beyond the basic "purchase-only" series. Although they all use the same basic methodology, the three alternatives rely on slightly different datasets in index estimation.
The alternative measures include:
- "Distress-Free" house price indexes. Sales of bank-owned properties and short sales are removed from purchase-only dataset prior to estimation of the indexes.
- "Expanded-Data" house price indexes. Sales price information sourced from county recorder offices and from FHA-endorsed mortgages are added to the purchase-only data sample.
- "All-Transactions" house price indexes. Appraisal values from refinance mortgages are added to the purchase-only data sample.
Thursday, August 13, 2015
GBS Building Supply Makes Inc. 5000 List for Second Year
Rising Housing Prices Affect Affordability
Firming home prices in many housing markets resulted in a modest drop in nationwide housing affordability in the second quarter of 2015, according to the latest NAHB/Wells Fargo Housing Opportunity Index (HOI).
“Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward,” said NAHB Chairman Tom Woods. “At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor.”
In Greater Greenville, even as housing prices have risen, the index improved from 77.7% during the first quarter 80% in the second quarter. Like the nation, house prices increased to $158,000 from $154,000. Income remained the same at $58,000. Greater Greenville's national rank as most affordable among all housing markets improved to 76th nationally from 107th in the last quarter. Greenville is now 17th in the Southeast, an improvement from 32nd in the first quarter.
Meanwhile, Charleston's affordability declined as housing prices continued to rise. Charlotte's affordability also also declined, along with Atlanta. Columbia's affordability improved slightly to 88.7%. Columbia is among the 50 most affordable housing markets in the country and 10th in the Southeast.
In all, 63.2% of homes sold nationwide between the beginning of April and end of June were affordable to families earning the median income of $65,800. This is down from the 66.5% of homes sold that were affordable to median-income earners in the first quarter.
The national median home price increased from $210,000 in the first quarter to $230,000 in the second quarter as average mortgage rates edged slightly lower from 4.03% to 3.99% in the same period.
“Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold,” said NAHB Chief Economist David Crowe. “Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”
Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market, and Kokomo, Ind., claimed the title of most affordable small housing market in this year’s second quarter. There, 95.5% of homes sold were affordable to families earning the area’s median income of $55,200.
For the 11th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., was the nation’s least affordable major housing market. There, only 11% of homes sold in the second quarter were affordable to families earning the area’s median income of $103,400.
Please visit nahb.org/hoi for tables, historic data and details.
“Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward,” said NAHB Chairman Tom Woods. “At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor.”
In Greater Greenville, even as housing prices have risen, the index improved from 77.7% during the first quarter 80% in the second quarter. Like the nation, house prices increased to $158,000 from $154,000. Income remained the same at $58,000. Greater Greenville's national rank as most affordable among all housing markets improved to 76th nationally from 107th in the last quarter. Greenville is now 17th in the Southeast, an improvement from 32nd in the first quarter.
Meanwhile, Charleston's affordability declined as housing prices continued to rise. Charlotte's affordability also also declined, along with Atlanta. Columbia's affordability improved slightly to 88.7%. Columbia is among the 50 most affordable housing markets in the country and 10th in the Southeast.
In all, 63.2% of homes sold nationwide between the beginning of April and end of June were affordable to families earning the median income of $65,800. This is down from the 66.5% of homes sold that were affordable to median-income earners in the first quarter.
The national median home price increased from $210,000 in the first quarter to $230,000 in the second quarter as average mortgage rates edged slightly lower from 4.03% to 3.99% in the same period.
“Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold,” said NAHB Chief Economist David Crowe. “Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”
Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market, and Kokomo, Ind., claimed the title of most affordable small housing market in this year’s second quarter. There, 95.5% of homes sold were affordable to families earning the area’s median income of $55,200.
For the 11th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., was the nation’s least affordable major housing market. There, only 11% of homes sold in the second quarter were affordable to families earning the area’s median income of $103,400.
Please visit nahb.org/hoi for tables, historic data and details.
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