February 03, 2010

New home market gets a boost
 

Prime Property

Blogging Houston real estate with Nancy Sarnoff

Housing starts were up in the fourth quarter for the first time since 2006, according to new data from Metrostudy.

The company attributes the gain to stabilizing economic trends, more folks moving here and new demand spurred by the extension of the homebuyer tax credit.

Builders started 4,586 homes during the last three months of 2009, a 6 percent increase over the previous year and the first year-over-year jump in quarterly starts since the third quarter of 2006, according to the company's new home survey.

Still, last quarter's increase doesn't mean we're in for a rebound year.

Metrostudy expects the industry to build and sell between 18,000 and 20,000 homes this year, similar to 2009 levels.

The dark cloud in Metrostudy's otherwise sunny report was the large number of vacant developed lots.

At the end of the fourth quarter, there were 65,925 vacant developed lots, a 42.3-month supply, which is far above what the company sees as a healthy market equilibrium range of 20 to 24 months.

"Most builders are entering this year with leaner operations, less inventory and lower costs for construction," said Metrostudy President Mike Inselmann.


nancy@callnancyfurst.com