The U.S. Census Bureau of the Department of Commerce announced today that construction spending during January 2012 was estimated at a seasonally adjusted annual rate of $827.0 billion, 0.1 percent below the revised December estimate of $827.6 billion. The January figure is 7.1 percent above the January 2011 estimate of $772.0 billion.
Spending on private construction was at a seasonally adjusted annual rate of $538.7 billion, nearly the same as the revised December estimate of $538.7 billion. Residential construction was at a seasonally adjusted annual rate of $253.6 billion in January, 1.8 percent above the revised December estimate of $249.2 billion. Nonresidential construction was at a seasonally adjusted annual rate of $285.0 billion in January, 1.5 percentbelow the revised December estimate of $289.5 billion.
In January, the estimated seasonally adjusted annual rate of public construction spending was $288.3 billion, 0.2 percent below the revised December estimate of $289.0 billion. Educational construction was at a seasonally adjusted annual rate of $71.6 billion, 0.9 percent below the revised December estimate of $72.2 billion. Highway construction was at a seasonally adjusted annual rate of $83.7 billion, 0.2 percent (±3.8%)* below the revised December estimate of $83.9 billion.
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Wednesday, February 29, 2012
Monday, February 27, 2012
January Pending Home Sales Rise, Market on Uptrend
Pending home sales are on an upward trend, which has been uneven but meaningful since reaching a cyclical low last April, and are well above a year ago, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.0 percent to 97.0 in January from a downwardly revised 95.1 in December and is 8.0 percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.
The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the home buyer tax credit.
The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West the index fell 4.4 percent in January to 101.9 but is 0.7 percent above January 2011.
The Eckerman Group
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7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
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The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 2.0 percent to 97.0 in January from a downwardly revised 95.1 in December and is 8.0 percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.
The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the home buyer tax credit.
The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West the index fell 4.4 percent in January to 101.9 but is 0.7 percent above January 2011.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
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Friday, February 24, 2012
New Home Sales In January Down From December, Up From Last Year
Sales of new single-family houses in January 2012 were at a seasonally adjusted annual rate of 321,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.9 percent below the revised December rate of 324,000, but is 3.5 percent (±17.6%)* above the January 2011 estimate of 310,000.
The median sales price of new houses sold in January 2012 was $217,100; the average sales price was $261,600. The seasonally adjusted estimate of new houses for sale at the end of January was 151,000. This represents a supply of 5.6 months at the current sales rate.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
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The median sales price of new houses sold in January 2012 was $217,100; the average sales price was $261,600. The seasonally adjusted estimate of new houses for sale at the end of January was 151,000. This represents a supply of 5.6 months at the current sales rate.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Tuesday, January 31, 2012
December Construction Spending Up From November
The U.S. Census Bureau of the Department of Commerce announced today that construction spending during December 2011 was estimated at a seasonally adjusted annual rate of $816.4 billion, 1.5 percent above the revised November estimate of $804.0 billion. The December figure is 4.3 percent above the December 2010 estimate of $782.9 billion. The value of construction in 2011 was $787.4 billion, 2.0 percent below the $803.6 billion spent in 2010.
Spending on private construction was at a seasonally adjusted annual rate of $529.7 billion, 2.1 percent above the revised November estimate of $518.8 billion. Residential construction was at a seasonally adjusted annual rate of $241.2 billion in December, 0.8 percent above the revised November estimate of $239.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $288.5 billion in December, 3.3 percent above the revised November estimate of $279.4 billion.
The value of private construction in 2011 was $504.1 billion, 0.7 percent above the $500.6 billion spent in 2010. Residential construction in 2011 was $236.2 billion, 1.1 percent below the 2010 figure of $238.8 billion and nonresidential construction was $268.0 billion, 2.4 percent above the $261.8 billion in 2010.
In December, the estimated seasonally adjusted annual rate of public construction spending was $286.6 billion, 0.5 percent above the revised November estimate of $285.3 billion. Educational construction was at a seasonally adjusted annual rate of $70.6 billion, 0.6 percent below the revised November estimate of $71.1 billion. Highway construction was at a seasonally adjusted annual rate of $84.5 billion, 1.8 percent above the revised November estimate of $82.9 billion. The value of public construction in 2011 was $283.3 billion, 6.5 percent below the $303.0 billion spent in 2010. Educational construction in 2011 was $70.9 billion, 5.3 percent below the 2010 figure of $74.9 billion and highway construction was $78.9 billion, 4.5 percent below the $82.5 billion in 2010.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Spending on private construction was at a seasonally adjusted annual rate of $529.7 billion, 2.1 percent above the revised November estimate of $518.8 billion. Residential construction was at a seasonally adjusted annual rate of $241.2 billion in December, 0.8 percent above the revised November estimate of $239.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $288.5 billion in December, 3.3 percent above the revised November estimate of $279.4 billion.
The value of private construction in 2011 was $504.1 billion, 0.7 percent above the $500.6 billion spent in 2010. Residential construction in 2011 was $236.2 billion, 1.1 percent below the 2010 figure of $238.8 billion and nonresidential construction was $268.0 billion, 2.4 percent above the $261.8 billion in 2010.
In December, the estimated seasonally adjusted annual rate of public construction spending was $286.6 billion, 0.5 percent above the revised November estimate of $285.3 billion. Educational construction was at a seasonally adjusted annual rate of $70.6 billion, 0.6 percent below the revised November estimate of $71.1 billion. Highway construction was at a seasonally adjusted annual rate of $84.5 billion, 1.8 percent above the revised November estimate of $82.9 billion. The value of public construction in 2011 was $283.3 billion, 6.5 percent below the $303.0 billion spent in 2010. Educational construction in 2011 was $70.9 billion, 5.3 percent below the 2010 figure of $74.9 billion and highway construction was $78.9 billion, 4.5 percent below the $82.5 billion in 2010.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Monday, January 30, 2012
Case-Shiller Index Down Again In November
• Home prices in the U.S. expected to decline 3.6 percent into mid-2012, and then rebound 2.4 percent in second half 2012 through first half 2013 • Price declines and low mortgage rates have resulted in dramatic improvement in housing affordability • Ratio of monthly mortgage payment to median family income lowest on record; Monthly mortgage payment for a median-priced single-family home nearly 40 percent lower than at peak
Fiserv, Inc. today released an analysis of home price trends in more than 380 U.S. markets based on the Fiserv®Case-Shiller Indexes®. The indexes are owned and generated by Fiserv, a leading global provider of financial services technology solutions, and data from the Federal Housing Finance Agency (FHFA).
The double-dip in home prices that started in 2010 continued to take home prices lower this spring and summer. Single-family home prices dropped 5.9 percent in 2011 second quarter compared to a year ago, according to the national Fiserv Case-Shiller home price indexes. Prices fell in 340 out of 384 metro areas, with 302 metros hitting new home price lows. Fiserv projects that home prices across the U.S. will decline another 3.6 percent by the second quarter of 2012, before rising by 2.4 percent by the second quarter of 2013.
"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," said David Stiff, chief economist at Fiserv. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 — a decline of nearly 40 percent. Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."
Elaborating on the reasons for continued weakness in the housing market, Stiff continued, "Although homes have become much less expensive, housing demand remains depressed with existing home sales back to 1998 levels, averaging 4.3 million units per year since June. Many households cannot finance first-time or trade-up home purchases to take advantage of lower home prices because of much stricter mortgage lending standards. But even households with access to mortgage credit are hesitant to buy homes while job growth is weak and consumer confidence is low."
Stiff pointed to several factors that can help the market find a bottom and begin a gradual and cautious recovery. "If economic growth picks up in the second half of 2011, then home prices should stabilize early next year. New housing construction is at an all-time low and inventories of foreclosed properties are starting to shrink. Lower levels of housing supply and more steady demand next year will reduce downward pressure on prices. As homebuyers become more confident, many who are sitting on the sidelines will begin to enter the market and prices will start to increase. But we should not expect a rapid rebound in home prices. Very large inventories of foreclosed properties must be liquidated and absorbed before the healthy functioning of housing markets is restored."
"Potential buyers must be convinced that the economic recovery is back on track and that the double-dip in home prices is nearly over before housing demand will begin to rise," Stiff concluded.
Other highlights from the latest Fiserv Case-Shiller Indexes include:
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Fiserv, Inc. today released an analysis of home price trends in more than 380 U.S. markets based on the Fiserv®Case-Shiller Indexes®. The indexes are owned and generated by Fiserv, a leading global provider of financial services technology solutions, and data from the Federal Housing Finance Agency (FHFA).
The double-dip in home prices that started in 2010 continued to take home prices lower this spring and summer. Single-family home prices dropped 5.9 percent in 2011 second quarter compared to a year ago, according to the national Fiserv Case-Shiller home price indexes. Prices fell in 340 out of 384 metro areas, with 302 metros hitting new home price lows. Fiserv projects that home prices across the U.S. will decline another 3.6 percent by the second quarter of 2012, before rising by 2.4 percent by the second quarter of 2013.
"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," said David Stiff, chief economist at Fiserv. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 — a decline of nearly 40 percent. Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."
Elaborating on the reasons for continued weakness in the housing market, Stiff continued, "Although homes have become much less expensive, housing demand remains depressed with existing home sales back to 1998 levels, averaging 4.3 million units per year since June. Many households cannot finance first-time or trade-up home purchases to take advantage of lower home prices because of much stricter mortgage lending standards. But even households with access to mortgage credit are hesitant to buy homes while job growth is weak and consumer confidence is low."
Stiff pointed to several factors that can help the market find a bottom and begin a gradual and cautious recovery. "If economic growth picks up in the second half of 2011, then home prices should stabilize early next year. New housing construction is at an all-time low and inventories of foreclosed properties are starting to shrink. Lower levels of housing supply and more steady demand next year will reduce downward pressure on prices. As homebuyers become more confident, many who are sitting on the sidelines will begin to enter the market and prices will start to increase. But we should not expect a rapid rebound in home prices. Very large inventories of foreclosed properties must be liquidated and absorbed before the healthy functioning of housing markets is restored."
"Potential buyers must be convinced that the economic recovery is back on track and that the double-dip in home prices is nearly over before housing demand will begin to rise," Stiff concluded.
Other highlights from the latest Fiserv Case-Shiller Indexes include:
- Prices dropped by double-digits in 30 metro areas, while 25 metro areas had small price increases of 1 percent or more.
- Between 2011 second quarter and 2012 second quarter, prices are projected to rise by double digits in only two metros (Madera-Chowchilla, Calif. and Carson City, Nev.) and decline by double digits in 16 metro areas (Naples-Marco Island, Fla.; Las Vegas-Paradise, Nev.; Riverside-San Bernardino-Ontario, Calif.; Miami-Miami Beach-Kendall, Fla.; Salinas, Calif.; Cape Coral-Fort Myers, Fla.; Crestview-Fort Walton Beach-Destin, Fla.; Orlando-Kissimmee-Sanford, Fla.; Bethesda-Rockville-Frederick, MD; Merced, Calif.; Detroit-Livonia-Dearborn, Mich.; Jacksonville, Fla.; Ocean City, N.J.; Port St. Lucie, Fla.; Phoenix-Mesa-Glendale, Ariz.; Palm Coast, Fla.)
- Projections for the following 12 months, i.e. the 2012 second quarter to 2013 second quarter period, illustrate why the housing market is poised to stabilize next year: home prices in 372 of the 384 markets are projected to rise in that time period, with only 12 markets expected to experience declines.
- California and Florida have borne the brunt of the worst declines in home prices. Of the 33 markets where homes have lost at least 50 percent of their value since peak, 28 are in the Sunshine and Golden States.
- In markets with the largest home price bubbles and crashes, improvements in housing affordability have been even larger. For example, the ratio of monthly mortgage payment to family income dropped from 32 percent (2006:Q1) to 11 percent in Las Vegas, from 42 percent (2007:Q1) to 19 percent in Miami, and from 59 percent (2007:Q2) to 27 percent in Los Angeles.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Wednesday, January 25, 2012
December New Residential Home Sales Down From November
Sales of new single-family houses in December 2011 were at a seasonally adjusted annual rate of 307,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.2 percent below the revised November rate of 314,000 and is 7.3 percent below the December 2010 estimate of 331,000.
The median sales price of new houses sold in December 2011 was $210,300; the average sales price was $266,000. The seasonally adjusted estimate of new houses for sale at the end of December was 157,000. This represents a supply of 6.1 months at the current sales rate.
An estimated 302,000 new homes were sold in 2011. This is 6.2 percent (±3.6%) below the 2010 figure of 323,000.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
The median sales price of new houses sold in December 2011 was $210,300; the average sales price was $266,000. The seasonally adjusted estimate of new houses for sale at the end of December was 157,000. This represents a supply of 6.1 months at the current sales rate.
An estimated 302,000 new homes were sold in 2011. This is 6.2 percent (±3.6%) below the 2010 figure of 323,000.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Freddie Mac: Mortgage Rates Hit All-Time Low
Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates easing to new all-time record lows for all products covered in the survey helping to keep homebuyer affordability high. The average for the 30-year fixed mortgage rate has been below 4.00 percent for six consecutive weeks.
News Facts
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Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
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News Facts
- 30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.7 point for the week ending January 12, 2012, down from last week when it averaged 3.91 percent. Last year at this time, the 30-year FRM averaged 4.71 percent.
- 15-year FRM this week averaged 3.16 percent with an average 0.8 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.7 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.72 percent.
- 1-year Treasury-indexed ARM averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.23 percent.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
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