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Monday, November 5, 2012

Home Building Trends

According to the article below, state-wide residential building is slowly improving after one of the worst periods for building in decades.  New construction has yet to return in strength to Presque Isle County, but there may be some good news on the horizon.  Home building is an important component of a health economy.  If Rogers City is too become a dynamic economy again, then we will need to see new housing projects.  Here is the article:

Michigan home builders project 10,400 new homes in 2012; average sale price up

Melissa Anders | manders@mlive.comBy Melissa Anders | manders@mlive.com 
on November 02, 2012 at 2:38 PM, updated November 02, 2012 at 2:58 PM
homebuild.jpgThe Home Builders Association of Michigan projects about 10,400 new homes this year compared to 8,000 in 2011.

LANSING, MI — Home building is picking up in Michigan, but the industry still remains a fraction of its former self.
Nearly 7,800 home building permits have been issued through September, up about 32 percent from 5,900 at the same point last year, according to the Home Builders Association of Michigan.
The trade group projects about 10,400 new homes this year compared to 8,000 in 2011.
That's much larger than the improvements seen in 2010 and 2011.
Still, the 31,250 homes built from 2008-2011 don't come close the 44,782 homes built in just 2004.
Michigan historically has averaged more than 30,000 homes per year.
“So while were optimistic and things are moving in the right direction, one would argue … Michigan is about a third of normal,” said Bob Filka, CEO of the home builders association.
Bill Benedetto, owner of Eagle Ventures Inc. in Jackson, said he hasn’t built a new home in four years. He’s turned to remodeling projects to stay afloat.
He said he’d like to take on new home building projects but there haven’t been any available.
“It’s better than it has been, but it’s not as good as it was,” he said of the home building industry.
A statewide survey of home builders showed cautious optimism.
Pent-up demand is finally starting to move things forward, much like the auto industry is experiencing, Filka said.
“There are fewer and fewer high quality homes to purchase,” he said, add that in some neighborhoods homes are starting to sell for more than list price.
Overall home sales and prices are on the rise, according statistics from 41 local realtors’ associations throughout the state compiled by the Michigan Association of Realtors.
The associations tracked 93,666 homes sold through September, up 9 percent from 85,598 at the same point last year.
The average sale price year-to-date is $109,767, up 5 percent from $104,683 one year ago.
Filka said he’s not sure when the market will return to “normal.”
“I believe we would be bouncing back even quicker right now but there are still some problems, leftovers from the bubble,” he said.
Some buyers are still struggling to access credit and get the appraisals they need to get financing, he said. Construction loans for speculation, or inventory, homes is not readily available.
Another pressure on the industry comes from a shortage of workers, particularly in places like Grand Rapids and Ann Arbor where demand is picking up.
The overall construction industry shed 67,000 jobs between 2004 and 2011, and employment has dropped even more this year, according to state labor statistics.
Many of those people left the industry and aren’t coming back, and fewer high schools offer the types of vocational programs that prepare students for hands-on trades, Filka said.
Construction companies may need to raise wages to attract workers, which in turn raises prices on new homes.
Email Melissa Anders at manders@mlive.com. Follow her on Twitter:@MelissaDAnders.

1 comment:

hannawebster said...

Good checklist of all the sale prices. Thanks for listing it here, it will help to know the price fluctuation under various years.