OFFICE:   CELL:
 Welcome to the Affordable-UtahHousing.com Blog

2013-02-21 07:59:10
Foreclosure Discounts Are Fading Away!

Housing starts declined 8.5 percent from December to January but remain 24 percent above last year’s rates, according to recent data from the Census Bureau and HUD.

Capital Economics points out in a report that the recent decline is largely driven by the multifamily sector, while single-family starts actually rose 0.8 percent over the month.

The general upward trend in housing starts is tied to recent declines in distressed inventory, according to Capital Economics.

“[H]omebuilders are starting to benefit from the dwindling supplies of deeply discounted distressed homes, which for a while were next to impossible for builders to compete with,” the analytics firm stated.

Foreclosure inventory declined 19.5 percent year-over-year in December, according to CoreLogic, and RealtyTrac recently reported a 79-month low in foreclosure starts for the month of January.

At a regional level, housing starts rose in the South and West while declining in the Midwest and Northeast over the month of December.

The Midwest experienced a 98 percent decline in multifamily starts, which Capital Economics labeled “suspicious to say the least.” The firm suggests “there is considerable scope for upward revisions in the future.”

The Northeast, however, having been “hurt by high foreclosure rates and a slowdown in population growth, is struggling,” according to IHS Global Insight economist Patrick Newport.

While “housing starts numbers are the headline-grabbing numbers,” Newport insists “the permits matter more because they are forward-looking, are not affected as much by weather, are better measured, and are subject to smaller revisions than the starts.”

While single-family housing permits increased 1.9 percent nationally to their highest level since June 2008, single-family permits in the Northeast actually declined. Single-family permits in the Northeast fell by 2,000 to 46,000, according to Census Bureau and HUD data.

Newport points out that single-family permits made up just 42 percent of all permits in the Northeast, which is the second-lowest share the sector has claimed on record.

Several Northeastern states rank at the top of the list of states with the largest percentage of foreclosure inventory, according to CoreLogic’s recent report.

New Jersey, New York, Maine, Connecticut, and Maryland all ranked in the top 10, further suggesting Newport’s implication that the Northeast’s high foreclosure rates could be weighing on the region’s housing starts.

 

 

 

Source: DSNew.com

 
Blog Archive
2014-04-19 08:07:29
Mortgage Rates Continue to Drop

2014-04-18 08:05:59
Welcome signs” for Spring Buyers

2014-04-17 07:35:02
Lot Shortages Make Building Costs Higher

2014-04-16 07:28:25
Home Prices Press Down Affordability

2014-04-15 08:09:01
Sell When You Need to, Don’t Chase the Market

2014-04-14 08:01:52
Fannie Mae Selling to Investors

2014-04-12 07:52:39
FHA Program Gives Distressed Homeowners 2nd Chance

2014-04-11 08:52:17
Foreclosure Up In March

2014-04-10 08:59:06
So should you buy now? Or wait?

2014-04-09 08:01:16
FHA may bring back 'spot' condo loans

2014-04-08 07:39:56
Landlords are Projected to Increase Rents!

2014-04-07 08:08:01
Freddie: No More Record-Low Mortgage Rates

2014-04-05 07:31:52
Shrinking Investment Buyers

2014-04-04 08:18:32
Foreclosure and Shadow Inventory Decline

2014-04-03 07:46:07
Provo-Orem, Utah One of the Happiest Communities

2014-04-02 08:11:09
Financial Benefits of Home Ownership

2014-04-01 08:33:40
96% of Markets Better Off Than in 2010

2014-03-31 07:35:11
Fannie Extends Closing Cost Incentive to Buyers

2014-03-29 08:55:38
Discovery Gateway Children's Museum

2014-03-28 08:31:19
High Expectations for Retirement Homes

2014-03-27 07:51:25
New Report Faults Fannie, Freddie

2014-03-26 08:14:10
More Banks Lower FICO Score Requirements

2014-03-25 07:40:49
Forecast Home Price Increases

2014-03-24 07:44:37
More Homes Hit the Market in Time for Spring

2014-03-22 08:34:17
A New Weapon for Bidding Wars

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.