FOR IMMEDIATE RELEASE Contact:
Ross Woodstock
Kolt Communications, Inc
October 30, 2012 517-706-0001/517-410-7636
Home
Builders Housing Index Shows Solid Third Quarter Gains in Building and
Remodeling in Michigan
(Lansing,
MI) – A statewide survey of
homebuilders and remodelers showed significant improvement in the building industry’s
outlook as the Michigan Housing Index (MHI) reached its highest level in its 2
and ½ year history. The MHI, covering
the third quarter of 2012, showed a sharp increase from the second quarter
index, and was significantly higher than the same period one year ago. The
latest Michigan Housing Index covers the time period of July through September
2012.
“The
trend lines have been positive, so it is encouraging to see the outlook for
building continues to improve,” said Robert Filka, CEO of the Home Builders
Association of Michigan (HBAM), which conducts the monthly survey. “We’ve got a long way to go before we see
anything near normal historical production, but things are definitely headed in
the right direction.”
Following
is a year-to-year comparison of the MHI Index:
September 2012 June 2012 September 2011
Builders Index 52
38 31
Remodelers Index
50 40 45
The
Michigan Housing Index (MHI) is a quarterly summary of building and remodeling activity
compiled by HBAM. 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.
The survey breaks down builder/remodeler sentiment into three categories:
- Less than 45 (pessimistic)
- 45-55 (cautious optimism)
- Above 55 (optimism)
“While
it is good to note that Michigan
homebuilders and remodelers are cautiously optimistic about the next few
months, our overall economy must see more rapid and sustained growth for a
complete recovery of our housing industry,” said Filka.
Filka
also noted there remains much concern within the homebuilding industry over the
possibility that Congress and the President could begin overhauling the federal
tax code in 2013, which could threaten some of the most important tools that
encourage home ownership, including the ability for consumers to deduct
mortgage interest.
“We
must protect the mortgage interest deduction,” said Filka. We shouldn’t change
the rules on the one tax break that has been most important in creating a
stable middle class in America.
A strong housing market is not only important to help more Michigan
citizens realize the dream of homeownership, but is essential to revitalizing Michigan’s economy. When
builders are constructing homes that means jobs and investment, which provide a
better quality of life and support for Michigan
schools and municipalities.”
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 HBAM Michigan
Housing Index is intended to provide an accurate projection of the future
direction of the building and remodeling housing market in Michigan.
About
the Michigan
Association of Home Builders:
The Home
Builders Association of Michigan
is a professional trade association comprised of 27 local homebuilder
associations around the state and their builder, subcontractor and supplier
members. HBAM works to positively
promote the building industry and impact legislative, regulatory and legal
issues affecting housing affordability.
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