not start to build..., an accurate view of the Buyer Tax Credit...
What we see in these articles is that not only do WE - you and U.S.- not know what to expect as the Home Buyer Tax Credit expires, but the RE industry does not either.
New home inventories drop 2 percent to a record low 482,000 units
New permits dropped 11.5 percent to a 606,000-unit pace last month
= the lowest level since October 2009
However, without the two Buyer Tax Credits what we DO know is that there would not have been these sales levels.
And, along with these sales levels were people out looking for homes.
THAT was and is badly needed by the RE markets.
Without customers, without financing..., we - you and U.S. - can NOT sell you current home.
If you cannot sell, you are forced to stay where you are, or try to rent in a market gulfed by foreclosures and apartments for rent.
What WILL be we do not know, what we would have "missed" we DO know.
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Housing starts hit 1-1/2-year high
Compared with April last year, starts were up 40.9 percent, the largest increase since March 1994.
Building permits, which give a sense of future home construction,
dropped 11.5 percent to a 606,000-unit pace last month
the lowest level since October 2009.
Housing starts in April were lifted by a 10.2 percent rise in groundbreaking for single-family homes to a rate of 593,000 units. This followed a 2.1 percent gain in March.
Starts in the volatile multifamily segment tumbled 18.6 percent to a 79,000-unit annual pace, partially reversing the prior month's 24.4 percent surge
Permits lead housing starts by one to two months.
Last month, building completions increased 19.2 percent to 769,000 units,
while the inventory of total houses under construction fell 2 percent to a record low 482,000 units.
The total number of units authorized but not yet started dropped 5 percent
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Housing Starts Rise as New Permits Fall
There were still 15.9% additional new permits than in April 2009, however
{Buyer Tax Credit] applied to any contracts signed through April 30th.
As a result, much of the new construction that broke ground might have continued to benefit from the credit, if some of those homes were already spoken for.
New permits occur at an earlier stage in home building, however.
Consequently, fewer of those contracts might have been signed by April 30th, so the credit didn't benefit them as much. Builders are also likely just anticipating a decline in demand for new homes now that the credit has expired.
The drop in permits likely foreshadows what we'll see in home building and sales numbers in May and beyond, without the government credit.
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US Home Building Gains, but New Permits Fall
Permits for single family homes fell by 10.7 percent, to 484,000, from 542,000 in March.
This is a significant number because it is not affected by seasonality and it gives an indication of future plans. Most of the permits were issued for construction in the South. Single family permits were down in all four regions of the country.
“The builders overestimated, They thought they would sell more because of the tax credit.”
multifamily housing construction market, which is part of the commercial real estate market, was being hit hard by high vacancy rates, low rental rates and difficulties getting financing.
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