HOME BUILDERS HOUSING INDEX SHOWS SOLID THIRD QUARTER GAINS IN BUILDING AND REMODELING IN MICHIGAN

FOR IMMEDIATE RELEASE                              Contact: Ross Woodstock

                                                                                    Kolt Communications, Inc

October 30, 2012                                                        517-706-0001/517-410-7636

                                                                                    Ross@Koltpr.com

 

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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As More Markets Stabilize, Housing Affordability Hovers Near Record Levels for 10th Consecutive Quarter

WASHINGTON, November 17 - Buoyed by stabilizing home prices and sustained low interest rates, nationwide housing affordability during the third quarter of 2011 hovered near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure rose slightly from the 72.6 percent set last quarter and has remained above the 70 percent threshold for 11 consecutive quarters. The HOI rarely rose above 60 percent prior to this period.

"With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households than it has been for nearly two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "However, tough economic conditions -- particularly in markets that experienced major changes in house prices and production -- as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales."

Lakeland-Winter Haven, Fla., was the most affordable major housing market in the country during the third quarter of the year. In Lakeland, 92.5 percent of all homes sold were affordable to households earning the area's median family income of $53,800.

Other major metro housing markets ranking near the top of the index were Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah, respectively.

Among smaller housing markets, the most affordable was Fairbanks, Alaska, where 97.8 percent of homes sold during the third quarter of 2011 were affordable to families earning a median income of $91,700. Also ranking near the top were Kokomo, Ind.; Cumberland, Md.-W.Va.; Davenport-Moline-Rock Island, Iowa-Ill.; and Lima, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the third quarter of 2011. In New York, 23.3 percent of all homes sold during the quarter were affordable to those earning the area's median income of $67,400. The New York metropolitan division has held the least affordable market position for the last 14 quarters.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Glendale, Calif., respectively.

Ocean City, N.J., where 41.7 percent of the homes were affordable to families earning the median income of $70,100, was the least affordable of the smaller metro housing markets in the country during the third quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.

Please visit www.nahb.org/hoi for tables, historic data and details.

EDITOR'S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

Housing is Key to Job Creation, Economic Recovery

WASHINGTON, Oct. 5 - Discussions on the need to restore the nation's languishing housing market in order to rouse job creation from anemic levels and boost economic growth has been prominent this week in congressional testimony from Federal Reserve Chairman Ben Bernanke and in newspapers across the country, leaving many wondering when leaders in Washington will take action to address this problem.

"How many more articles need to appear on the front pages of major newspapers and how many officials need to sound the alarm before federal policymakers reverse anti-housing policies that are dampening demand and preventing a housing and economic recovery from taking hold?" asked Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev.

Testifying before the Joint Economic Committee yesterday, Bernanke said: "The housing sector has been a significant driver of recovery from most recessions in the United States since World War II. This time, however, a number of factors -- including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and the large number of 'underwater' mortgages (on which home owners owe more than their homes are worth) -- have left the rate of new home construction at only about one-third of its average level in recent decades."

With inventories of new homes nearly depleted in many markets, builders should be gearing up to meet demand, create new jobs and help the economy move forward. Unfortunately, production remains stymied because builders in these locations cannot get credit from lending institutions to begin work on new homes.

"National unemployment flatlined in August, more than 1.4 million residential construction jobs have been lost since April 2006 and yet there is demand for housing in markets that are on the mend," said Nielsen. "Home builders have plenty of shovel-ready jobs set to go but they can't keep their doors open and create jobs in their communities if federal regulators continue to shut off the credit spigot."

During the past few months, seven different national surveys conducted by prominent polling organizations including the New York Times/CBS News, the Pew Research Center, the AllState/National Journal Heartland Monitor and Hanley-Wood have looked at homeownership from every possible angle.

"One thing is always crystal clear in all these polls," said Nielsen. "The American people still strongly believe that homeownership provides security, stability and a solid long-term investment. Yet, policymakers are doing their best to put policies in place that reduce the American people's ability to purchase a home. Why? How long do we want to stay in a recession?"

While prudent underwriting and other safeguards are needed to prevent another housing collapse in the future, he said, current proposals to correct shortcomings in the home finance system are far more stringent than necessary and threaten to price many creditworthy borrowers out of the housing market.

Six federal agencies are proposing a national Qualified Residential Mortgage standard that would require a minimum 20 percent downpayment and other stricter qualifications, which would keep homeownership out of reach for most first-time home buyers and middle-class households. NAHB estimates that it would take 12 years for a typical family to save enough money for a 20 percent downpayment on a median-priced single-family home and other research has found it would take even longer.

Meanwhile, some members of Congress are actively pushing to abolish Fannie Mae and Freddie Mac and end the federal backstop for housing. A strong federal role is essential to help absorb market risk, ensure a stable and reliable flow of credit for home buyers and to maintain a liquid secondary market. Diminishing or ending government support for housing would make the 30-year, fixed-rate mortgage, the major housing finance tool for most Americans, increasingly scarce and much more costly.

Further complicating the situation, this week's reduction in the conforming loan limits means that many prospective buyers who are seeking a home loan will now have to pay higher interest rates, fees and downpayments and face more stringent credit standards.

Noting that housing normally accounts for more than 17 percent of the nation's total economic output, Nielsen said policymakers need to take steps to spur housing, create jobs and bolster the economy.

"Home building can be the key engine of job growth that this country needs," he said. "Constructing 100 single-family homes generates more than 300 jobs and $8.9 million in taxes and revenue for state, local and federal governments that helps to fund local school systems and build strong communities."

NAHB Introduces New Economic Index Tracking Improving Housing Markets

WASHINGTON, Sept. 1-- The National Association of Home Builders (NAHB) announced today the launch of its NAHB Improving Markets Index (IMI), a new monthly economic index showing which housing markets are improving in three key economic indicators.

WHEN: Wednesday, Sept. 7, 2011

10:00 a.m. ET

The inaugural index will be released at 10:00 a.m. ET on Wednesday, Sept. 7, 2011. The IMI will be released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case the index will be released that following Monday.

The release dates for the remainder of 2011 are as follows:

· Wednesday, Sept. 7, 2011

· Thursday, Oct. 6, 2011

· Monday, Nov. 7, 2011

· Tuesday, Dec. 6, 2011

WHAT:

Beginning Sept. 7, the National Association of Home Builders (NAHB) will unveil a new monthly economic indicator--the NAHB Improving Markets Index (IMI)--designed to track housing markets throughout the country that are showing signs of improving economic health.

The new indicator will measure three sets of independent monthly data to get a marker on the top improving Metropolitan Statistical Areas (MSAs). The three indicators that will be analyzed are employment growth numbers from the Bureau of Labor Statistics (BLS), house price growth data from Freddie Mac, and single-family housing permit growth data from the U.S. Census Bureau. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Full tables and information related to the Improving Markets Index will be available at www.nahb.org/IMI. To sign up to receive NAHB's press releases on this and other topics, please go to www.nahb.org/erelease.

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, please visit NAHB's Eye on Housing blog at
http://eyeonhousing.wordpress.com/. You can also subscribe to the blog's free RSS feed, which will automatically alert readers to every new posting.

Michigan Housing Index Makes Encouraging Second Quarter Gains

(Lansing, MI) – A statewide survey of homebuilders covering the second quarter of 2011, showed sharp increases for new building and remodeling over the same period one year ago.  The Michigan Housing Index (MHI) for new homebuilding activity has remained fairly steady in recent months, averaging a score of 36 for the quarter ending June 30, 2011.  Though overall activity remains slow in the current economy, the MHI second quarter index is sharply ahead of the same period last year, when the index only registered a 26.

“We have to be encouraged by the year-to-year increases in outlook and business activity for both builders and remodelers,” said Robert Filka, CEO of the Michigan Association of Home Builders.  “There are pockets of increased activity around the state, but we still have a long ways to go.  Greater credit availability and continued improvement in what has been a dysfunctional appraisal marketplace is needed to sustain more growth.”

The Michigan Housing Index (MHI) is a quarterly summary of building and remodeling 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 is a year-to-year comparison of the MHI Index:

                                    April-June 2011                     April-June 2010         % Change

Builders Index                                    36                                            26                        38%

Remodelers Index                   58                                            46                        26%

“Having the state budget and tax reform package in place has eased some of the economic uncertainty in Michigan, which has certainly been helpful,” said Filka.  “But Michigan still needs the legislature to abolish the punitive tax on inventory homes, which now, more than ever, discourages builders from building and constrains job creation and growth in our sector.”

Among the highlights in the 2^nd Quarter MHI index:

• The MHI remodelers index has increased six of the past seven months;
• Consumers continue to emphasize smaller, more affordable energy efficient homes; and
• There appears to be an increase in current and projected homebuilding activity in the $200,000-$500,000 price range.

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.

Michigan Housing Index Shows Modest Growth in Homebuilding During the First Quarter of the Year

(Lansing, MI) – A statewide survey of homebuilders covering the first quarter of 2011

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

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                     52
December 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.