The U.S. Commerce Department reported of a 12.4% decline of new home sales for July. With newly built single-family home sales now at annual rate of 276,000 units that month, this represents the lowest sales rate for new homes on record. Bob Jones, chairman of the National Association of Home Builders (NAHB) commented, "Potential home buyers have become very hesitant due to uncertainty about the economy and job market, and are putting off the decision to buy until they feel more confident."
"The slow pace of economic recovery and worries about job security are weighing heavily on the minds of potential home buyers right now," agreed NAHB Chief Economist David Crowe. "As a result, the housing market is clearly in a holding pattern. That said, NAHB does not project that a double-dip recession is in the cards, and we are looking for employment gains later this year to help bolster sales activity moving forward."
Sales of new homes fell across every region in July, with a 13.9% decline reported in the Northeast. The latest figures indicated that builders are keeping a tight rein on the inventory of new homes for sale. That inventory remained unchanged at 210,000 units in July. However, due to the slower pace of sales activity, the month's supply of homes rose to 9.1 from 8.0 in the previous month.
Call or email me with your questions on new homes in New Jersey, and new home developments in Mercer County and surrounding areas. I can help you find that New Jersey new home and be in before the snow falls.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
(resource: RealEstateChannel.com)
Friday, August 27, 2010
Builder Confidence Down for 2nd Quarter in NJ Senior Housing Market
Builder confidence in the mature-housing market retreated during this year’s second quarter, according to data from the National Association of Home Builders’ 55+ Housing Market Index (55+ HMI), a quarterly survey of the association’s builder members engaged in the production of mature-market housing. This past quarter’s index values dropped for all areas surveyed, compared to the previous year’s second quarter.
“The same factors that affect activity in the overall housing market—including hesitant home buyers, tight consumer credit and continuing competition from foreclosed and distressed properties—are having an impact on the 55+ segment of the market, which remains stalled in most regions,” says NAHB’s Chief Economist, David Crowe. “In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles.”
The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. In the second quarter of 2010, the index slipped four points compared to the same period a year earlier, down to 12. Present sales fell to 12, down four points; expected sales to 17, down seven points, and traffic to 12, down 2 points.
The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year’s second quarter, to a record low value of 7, reflecting drops in current sales, expected sales, and traffic from prospective buyers.
Based on the sentiments of New Jersey builders I know and represent, this lack of confidence in the senior housing market are prevalent in Mercer County and surrounding areas as well.
If you are interested in new construction in New Jersey, call or email me. I can recommend builders and know all the developments, from my 20+ years of experience in the field.
Joe Giancarli, Sales Associate
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.jnhomesource.net/
www.activerain.com/blogs/josephgiancarli
“The same factors that affect activity in the overall housing market—including hesitant home buyers, tight consumer credit and continuing competition from foreclosed and distressed properties—are having an impact on the 55+ segment of the market, which remains stalled in most regions,” says NAHB’s Chief Economist, David Crowe. “In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles.”
The 55+ single-family HMI measures builder sentiment based on current sales, prospective buyer traffic and anticipated six-month sales for the 55+ single-family market. A number greater than 50 indicates that more builders view conditions as good than poor. In the second quarter of 2010, the index slipped four points compared to the same period a year earlier, down to 12. Present sales fell to 12, down four points; expected sales to 17, down seven points, and traffic to 12, down 2 points.
The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year’s second quarter, to a record low value of 7, reflecting drops in current sales, expected sales, and traffic from prospective buyers.
Based on the sentiments of New Jersey builders I know and represent, this lack of confidence in the senior housing market are prevalent in Mercer County and surrounding areas as well.
If you are interested in new construction in New Jersey, call or email me. I can recommend builders and know all the developments, from my 20+ years of experience in the field.
Joe Giancarli, Sales Associate
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.jnhomesource.net/
www.activerain.com/blogs/josephgiancarli
Thursday, August 19, 2010
New Jersey Home Builders Cautiously Optimistic
As nationwide housing starts inched up 1.7% to a seasonally adjusted annual rate of 546,000 units in July, from a downwardly revised figure in the previous month, home builders nationwide are holding their breath. According to U.S. Commerce Department, all new home construction gains occurred entirely on the multi-family side, with single-family housing production falling 4.2% to 432,000 units.
"Right now the housing market is essentially in a holding pattern," acknowledged NAHB Chief Economist David Crowe. "As our latest member surveys have indicated, builders are seeing greater hesitancy among potential home buyers who are uncertain about what's in store for the economy and jobs going forward. That said, favorable home buying conditions including historically low mortgage rates and low house prices should help spur additional demand as the job market gradually improves later this year."
Two regions registered improved starts activity in July, with the Northeast and Midwest each posting double-digit gains, of 30.5% and 10.7%, respectively.
New Jersey home builders are ready to move their inventory. Contact me to find out what bargains and buyer incentives you can negotiate for a new home in Mercer County.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
"Right now the housing market is essentially in a holding pattern," acknowledged NAHB Chief Economist David Crowe. "As our latest member surveys have indicated, builders are seeing greater hesitancy among potential home buyers who are uncertain about what's in store for the economy and jobs going forward. That said, favorable home buying conditions including historically low mortgage rates and low house prices should help spur additional demand as the job market gradually improves later this year."
Two regions registered improved starts activity in July, with the Northeast and Midwest each posting double-digit gains, of 30.5% and 10.7%, respectively.
New Jersey home builders are ready to move their inventory. Contact me to find out what bargains and buyer incentives you can negotiate for a new home in Mercer County.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
July Housing Starts Post Small Increase
US Housing Starts July, 2010
Privately-owned housing starts in July were at a seasonally adjusted annual rate of 546,000. This is 1.7% (±9.7%) above the revised June estimate of 537,000, but is 7.0% (±7.5%) below the July 2009 rate of 587,000.
Single-family housing starts in July were at a rate of 432,000; this is 4.2% (±8.7%) below the revised June figure of 451,000. The July rate for units in buildings with five units or more was 95,000.
US Building Permits July, 2010
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 565,000. This is 3.1% (±2.0%) below the revised June rate of 583,000 and is 3.7% (±2.2%) below the July 2009 estimate of 587,000.
Single-family authorizations in July were at a rate of 416,000; this is 1.2% (±1.2%) below the revised June figure of 421,000. Authorizations of units in buildings with five units or more were at a rate of 129,000 in July.
US Housing Completions July 2010Privately-owned housing completions in July were at a seasonally adjusted annual rate of 587,000. This is 32.8% (±6.8%) below the revised June estimate of 874,000 and is 25.4% (±7.3%) below the July 2009 rate of 787,000.
Single-family housing completions in July were at a rate of 490,000; this is 27.5% (±7.6%) below the revised June rate of 676,000. The July rate for units in buildings with five units or more was 91,000.
Contact me for information on Mercer County and New Jersey home building statistics.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.nhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Privately-owned housing starts in July were at a seasonally adjusted annual rate of 546,000. This is 1.7% (±9.7%) above the revised June estimate of 537,000, but is 7.0% (±7.5%) below the July 2009 rate of 587,000.
Single-family housing starts in July were at a rate of 432,000; this is 4.2% (±8.7%) below the revised June figure of 451,000. The July rate for units in buildings with five units or more was 95,000.
US Building Permits July, 2010
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 565,000. This is 3.1% (±2.0%) below the revised June rate of 583,000 and is 3.7% (±2.2%) below the July 2009 estimate of 587,000.
Single-family authorizations in July were at a rate of 416,000; this is 1.2% (±1.2%) below the revised June figure of 421,000. Authorizations of units in buildings with five units or more were at a rate of 129,000 in July.
US Housing Completions July 2010Privately-owned housing completions in July were at a seasonally adjusted annual rate of 587,000. This is 32.8% (±6.8%) below the revised June estimate of 874,000 and is 25.4% (±7.3%) below the July 2009 rate of 787,000.
Single-family housing completions in July were at a rate of 490,000; this is 27.5% (±7.6%) below the revised June rate of 676,000. The July rate for units in buildings with five units or more was 91,000.
Contact me for information on Mercer County and New Jersey home building statistics.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.nhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Thursday, August 12, 2010
Builders Shrinking Homes to Fit Scaled-back Buyer Tastes
The economic slowdown in the country has affected our lifestyles, plans, and business realities. One of the trends which has emerged is the preference of buyers toward smaller houses - greener, less square footage to heat, more sensible, and cheaper. Builders have seen the change, and adapted, constructing smaller homes to appeal to more buyers. “I do believe the younger generation isn’t looking to build mansions anymore,” said Sam Palazzolo, Michigan builder. “They are looking at simpler lives. They aren’t looking for the same houses that the baby boomers were.”
The trend for smaller new homes has been building over the past few years as the economy and housing crisis have taken a toll on consumer confidence. The average sizes of new homes built in the US shrank last year to 2,438 SF, after nearly three decades of growing floor plans. The average single-family home peaked at 2,521 SF in 2007. Square footage was flat in 2008, and then dropped in 2009, according to U.S. Census data released by the National Association of Home Builders.
New homes shrank by nearly 100 SF in 2009 compared with 2007. Those built today have fewer bedrooms as three-bedroom homes become the norm instead of four-bedroom homes. Other things getting smaller include the number of bathrooms and floors.
The last time there was a drop in the size of homes was in the early 1980s during the national recession, said David Crowe, chief economist for the National Association of Home Builders (NAHB). While that home-size decline was temporary, this time the changes could last longer because of an increased number of first-time home buyers, a desire to keep energy costs low, smaller amounts of equity in homes to roll into the next one, tighter credit, and less focus on the investment component of buying a home, he perceives . “Many of these tendencies are likely to persist and continue affecting the new home market for an extended period of time,” Crowe said.
Chris Naatz, the Midwest-area director of marketing for Bloomfield Hills, Mich.-based Pulte Group, also a builder here in central New Jersey, feels there is a demand for more-affordable homes and that builders will meet that demand. “Five years ago, home sizes were growing each year. Now people seem more practical. Savings are up, and a home is a very tangible thing that you enjoy every day.” Part of the growth during the boom was driven not only by consumer demand, but also by municipalities that required a certain lot size for each home such as an acre, he said. Pulte has introduced new products to meet the new buyer demands.
You have plenty of choices for new homes in Mercer County NJ and surrounding areas. I know the builders and the developments. Call or email me and let's talk about your options.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
The trend for smaller new homes has been building over the past few years as the economy and housing crisis have taken a toll on consumer confidence. The average sizes of new homes built in the US shrank last year to 2,438 SF, after nearly three decades of growing floor plans. The average single-family home peaked at 2,521 SF in 2007. Square footage was flat in 2008, and then dropped in 2009, according to U.S. Census data released by the National Association of Home Builders.
New homes shrank by nearly 100 SF in 2009 compared with 2007. Those built today have fewer bedrooms as three-bedroom homes become the norm instead of four-bedroom homes. Other things getting smaller include the number of bathrooms and floors.
The last time there was a drop in the size of homes was in the early 1980s during the national recession, said David Crowe, chief economist for the National Association of Home Builders (NAHB). While that home-size decline was temporary, this time the changes could last longer because of an increased number of first-time home buyers, a desire to keep energy costs low, smaller amounts of equity in homes to roll into the next one, tighter credit, and less focus on the investment component of buying a home, he perceives . “Many of these tendencies are likely to persist and continue affecting the new home market for an extended period of time,” Crowe said.
Chris Naatz, the Midwest-area director of marketing for Bloomfield Hills, Mich.-based Pulte Group, also a builder here in central New Jersey, feels there is a demand for more-affordable homes and that builders will meet that demand. “Five years ago, home sizes were growing each year. Now people seem more practical. Savings are up, and a home is a very tangible thing that you enjoy every day.” Part of the growth during the boom was driven not only by consumer demand, but also by municipalities that required a certain lot size for each home such as an acre, he said. Pulte has introduced new products to meet the new buyer demands.
You have plenty of choices for new homes in Mercer County NJ and surrounding areas. I know the builders and the developments. Call or email me and let's talk about your options.
Joe Giancarli, SA
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Builders and the 55+ Market - 2nd Quarter Report
Our area of New Jersey has several high quality "retirement communities" so this report on builder confidence does have some relevance to our real estate market.
According to new data from the National Association of Home Builders' (NAHB) 55+ Housing Market Index (55+ HMI), a quarterly survey of the association's builder members in the mature-market housing market, builder confidence retreated during the 2010 second quarter.
"The same factors that affect activity in the overall housing market - including hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties - are having an impact on the 55+ segment of the market, which remains stalled in most regions," says NAHB's Chief Economist, David Crowe. "In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles."
The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year's second quarter, reflecting drops in current sales, expected sales, and traffic from prospective buyers.
If you are interested in finding new construction in a 55+ community, call or email. I'm up to date on all new housing here in Mercer County and surrounding areas.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
According to new data from the National Association of Home Builders' (NAHB) 55+ Housing Market Index (55+ HMI), a quarterly survey of the association's builder members in the mature-market housing market, builder confidence retreated during the 2010 second quarter.
"The same factors that affect activity in the overall housing market - including hesitant home buyers, tight consumer credit, and continuing competition from foreclosed and distressed properties - are having an impact on the 55+ segment of the market, which remains stalled in most regions," says NAHB's Chief Economist, David Crowe. "In spite of the recent flurry of home-buying activity tied to the home buyer tax credit, many older homeowners continue to have difficulty selling their existing homes, causing them to postpone plans to look for a home that offers reduced maintenance or is otherwise more appropriately designed to accommodate their current lifestyles."
The 55+ multifamily condo index continued to record the lowest values, with a drop of five points over the previous year's second quarter, reflecting drops in current sales, expected sales, and traffic from prospective buyers.
If you are interested in finding new construction in a 55+ community, call or email. I'm up to date on all new housing here in Mercer County and surrounding areas.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Thursday, August 5, 2010
Construction Spending Rises in June
As reported in Realtor.Mag,
"Overall construction spending rose in June, driven by record government spending, the U.S. Department of Commerce reported.
"Spending on single-family residential structures declined 0.7% in June, the first time that number has gone down in a year.
"Funding for public construction increased 1.5% in June, with most of the money spent on power, sewage, and waste disposal plants. Federal building rose 4.6% to $31.7 billion, the highest spending on record.
“'Support to construction spending via new homes should continue to remain dampened in the coming months,' Maxwell Clarke, chief U.S. economist at IDEAglobal Inc. in New York, said in a note to clients before the report from Commerce. 'Ongoing difficulty of accessing capital for speculative commercial real estate ventures will continue to act as a deadweight in the overall construction measure.'”
For information on new home developments in Mercer County, NJ, call or email so you can find your new home while the weather is good for looking.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Source: Bloomberg, Courtney Schlisserman (08/02/2010)
"Overall construction spending rose in June, driven by record government spending, the U.S. Department of Commerce reported.
"Spending on single-family residential structures declined 0.7% in June, the first time that number has gone down in a year.
"Funding for public construction increased 1.5% in June, with most of the money spent on power, sewage, and waste disposal plants. Federal building rose 4.6% to $31.7 billion, the highest spending on record.
“'Support to construction spending via new homes should continue to remain dampened in the coming months,' Maxwell Clarke, chief U.S. economist at IDEAglobal Inc. in New York, said in a note to clients before the report from Commerce. 'Ongoing difficulty of accessing capital for speculative commercial real estate ventures will continue to act as a deadweight in the overall construction measure.'”
For information on new home developments in Mercer County, NJ, call or email so you can find your new home while the weather is good for looking.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
Source: Bloomberg, Courtney Schlisserman (08/02/2010)
Remodeling Projects Decrease
The latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) indicates that in the second quarter of 2010, declines were seen in many key markets. NAHB Remodelers Chairman Donna Shirey said, "Remodelers are suffering from weak consumer confidence and constricted credit lines. Homeowners are delaying remodeling projects because of economic uncertainty."
The regions that fared the worst were the Northeast and the South.
The homeowners who are choosing to remodel instead of trade up are most commonly working on the bathroom - 61%, and kitchen - 52%.
An interesting change in the industry is the rise of handy"man" services. The NAHB survey found, "None of the professional remodelers responding to the survey reported that it was common for their companies to perform handyman services in 2004, while 33% of remodelers were regularly providing handyman work in the first half of 2010."
In summation, NAHB Chief Economist David Crowe predicts, "While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year. For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."
If you aren't sure if a remodeling project will increase the value of your home when you decide to sell, call or email me. With my construction background and knowledge of our Mercer County NJ real estate sales, I can help you decide.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
619-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
The regions that fared the worst were the Northeast and the South.
The homeowners who are choosing to remodel instead of trade up are most commonly working on the bathroom - 61%, and kitchen - 52%.
An interesting change in the industry is the rise of handy"man" services. The NAHB survey found, "None of the professional remodelers responding to the survey reported that it was common for their companies to perform handyman services in 2004, while 33% of remodelers were regularly providing handyman work in the first half of 2010."
In summation, NAHB Chief Economist David Crowe predicts, "While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year. For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."
If you aren't sure if a remodeling project will increase the value of your home when you decide to sell, call or email me. With my construction background and knowledge of our Mercer County NJ real estate sales, I can help you decide.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
619-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
www.activerain.com/blogs/josephgiancarli
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