Posted in Charlotte Market | Posted on 02-04-2013 | Written by Metrostudy News
(Charlotte, NC– February 4, 2012) The improvement in housing may be the most positive national news for the year. Permits are up across the country and Charlotte has many new apartments and homes under construction according to recent information from Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
North Carolina’s November unemployment rate at 9.1% was fifth highest in the country while the Charlotte MSA was not much better at 9.0%. The good news is that Charlotte saw a significant increase in November job creation at 22,900, the largest monthly increase in more than a year. “With North Carolina’s new Republican Governor in office there is optimism that job growth and our high unemployment rate will become priority number one,” said Bill Miley, director of Metrostudy’s Charlotte division.
Ending 4Q12, Charlotte’s quarterly starts for all product types were 1,647, down from last quarter’s 1,910. The 4Q12 starts were 23.1% higher than the 1,338 starts from a year ago in 4Q11. Charlotte’s annualized starts for 2012 increased to 6,585, a 27.4% increase over 2011. 4Q12 closings totaled 1,699 units, down 20 from last quarter’s closings. “Closings fell due to our low total units of finished detached inventory, currently at a 2.0 month supply. You can’t close them if they’re not finished,” said Miley. Compared to one year ago, Charlotte’s 4Q12 closings increased by 20.6%. The 6,515 homes closed in 2012 for all product types represented a 14.4% increase over 2011.
Total inventory of new homes in all stages of construction decreased to 3,762 in 4Q12 from last quarter’s 3,814. Total inventory (attached and detached new homes) fell from a 7.3 to a 6.9 mos (months of supply), the lowest in four years. Under construction homes are at a 3.8 mos while finished vacant are at a 2.5 month supply. A 7-8 month supply of inventory is considered to be in equilibrium. The total number of vacant developed lots in the market at the end of 4Q12 was 32,642. Relative to starts, this represented a 59.5 mos, dropping from the 64.0-month supply in 3Q12. 1,640 vacant lots were absorbed in starts while 880 new lots were delivered. “As our annual starts continue to grow, Charlotte’s vacant lot supply will be consumed, far out numbering new developed lots that will be added,” said Miley.
“Let’s hope the increase in new jobs seen locally continues and does not reflect a seasonal increase. Charlotte’s steady improvement in both starts and closings is expected to increase in 2013. Many builders have reported robust sales in both November and December. Strong presales will help give builders increased confidence in our local economy as well as many of our banks. The Charlotte MSA currently ranks ninth in the country in single family permits, further testimony to the desirability, appeal and strength of Charlotte NC,” said Miley.
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