showed a continuing trend of modest improvement in new building activity and a much
sharper upturn for the remodeling industry. The Michigan Housing Index (MHI) survey
of homebuilders increased 9 percent for the quarter ending March 31, 2011, which
represents a nine percent increase over the quarter ending in December 2010.
The MHI survey of remodelers showed its third consecutive monthly increase and stands at its
The MHI survey of remodelers showed its third consecutive monthly increase and stands at its
highest level since March 2010 “Consumers remain very cautious because of high fuel prices and the uncertainty over the state’s tax and budget reform negotiations,” said Robert Filka, CEO of the Michigan Association of Home Builders (MAHB). “Housing like the rest of the economy is recovering slowly, but it is encouraging to see continued signs of growth for homebuilders and a stronger market for remodeling,” The Michigan Housing Index (MHI) activity compiled by MAHB. The survey asks builders about the number of homes currently under construction and in the planning stages. Builders are also asked to evaluate their prospects for future customers. Totals are calculated in an index that is reported quarterly to provide a tracking mechanism for the industry’s process.
Following are the MHI quarterly totals for the past year (higher numbers are better):
Builders Survey Remodelers Survey
March 2011 36 52December 2010 33 34
September 2010 33 46
June 2010 28 47
March 2010 43 54
-more
“It’s important to remember that housing starts in the first half of 2010 were boosted by
the federal tax credit for first time homebuyers,” said Filka. “When that program ended,
housing starts took a hit, so it is nice to see this bounce back to earlier levels.”
Among the highlights of the 2011 first quarter Michigan Housing Index:
- Consumers continue to emphasize smaller, less costly, more energy efficient homes;
- New home construction is strongest in entry level price categories, primarily due to the continued dysfunctional appraisal environment for larger homes.
- The remodelers’ survey was strengthened due to an improving outlook for future business as a result of jobs being bid by remodelers but not yet underway.
About the MAHB Michigan Housing Index
The Michigan Housing Index combines results of a monthly survey of Michigan builders
and remodelers along with a series of economic statistics including single family home
permits, crude oil prices, automobile production and unemployment. The MAHB
Michigan Housing Index is intended to provide an accurate projection of the future
direction of the building and remodeling housing market in Michigan.
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