Builders broke ground on new homes in December at the fastest pace in more than four years offering a “solid ending to 2012 and a promising start to 2013,” according to the National Association of Home Builders.

Housing starts soared 12.1 percent in December, reaching a 954,000 annual rate and the fastest pace since June 2008, the Commerce Department reported Thursday. Most of the jump was attributed to a 20.3 percent increase in multifamily construction last month, helping the sector return to a nearly normal production pace by historical standards. Housing starts for single-family homes rose 8.1 percent in December.

"With inventories of new homes at razor thin levels, builders are moving prudently to break ground on new construction ahead of the spring buying season to meet increasing demand," says Barry Rutenberg, chairman of the National Association of Home Builders.

Permits for future home building — an indicator of future building — also rose slightly in December to its quickest pace since July 2008. Permits rose by the greatest amount in the Northeast by 19 percent and 6.6 percent in the West. The Midwest saw a 5.7 percent decline in housing permits, while the South saw a 3.4 percent decline in December.

Source: National Association of Home Builders and “Housing Starts Climb to Highest Rate Since June 2008,” Reuters (Jan. 17, 2013)

Builder confidence inched slightly higher in October, bringing it to its strongest level since June of 2006, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The October gain also marks the sixth consecutive month for increases in the index, which measures builder confidence about the direction of the new-home market.

"Many builders are reporting increases in the number of serious buyers visiting their sales offices, and the overall confidence measure is much higher than it was at this time last year," says Barry Rutenberg, NAHB Chairman.

The monthly index measures builder perceptions of current single-family home sales, sales expectations, and buyer traffic.

While builders’ confidence about the recovery continues to improve, housing experts say there are still several challenges ahead for the new-home sector.

"The slight gain in builder confidence this month is an indication that, while still moving forward, the speed at which the housing recovery is proceeding is being moderated by the various constraints such as tight credit, difficult appraisals and more recently, the limited inventory of buildable lots in certain markets," says David Crowe, NAHB chief economist.

Source: National Association of Home Builders

Homebuilders haven’t been this confident about sales, the outlook of future sales, and buyer traffic since June 2006, which is right before the housing crisis took hold, a new index shows.

For September, the National Association of Home Builders/Wells Fargo builder sentiment index, which measures builders’ outlook on current sales, future sales, and buyer demand, reached its highest level in six years. Plus, homebuilders expect the housing recovery to strengthen within the next six months.

Homebuilders say they’ve experienced some of the best sales levels they've had in six years, and buyer traffic has returned to May 2006 levels, the index shows.

"We think things have turned around and this recovery is sustainable," Patrick Newport, an economist with IHS Global Insight, told the Associated Press.

The index has been edging higher since last October, coinciding with reports that show sales and home prices inching up too.

Source: “Index of US Homebuilder Confidence Improves; Builders Anticipate Sales Strengthening into '13,” Associated Press (Sept. 18, 2012)

The homebuilding industry posted another gain in construction spending in June, marking the third consecutive month for increases, the Commerce Department reported Wednesday.

After a sluggish last few years, the homebuilding industry continues to dig toward a recovery, posting big year-over-year improvements that has many analysts saying the sector has finally reached the tipping point toward recovery.

In June, construction spending increased 0.4 percent. Last month, spending gained 1.6 percent -- an upwardly revised number -- which marked the largest one-month increase since December. The increase has been most driven by a rise in residential housing construction.

Overall, June construction spending was up 12.9 percent compared to February 2011, which at the time had marked a 12-year low for the sector.

However, economists warn that the homebuilding industry still has a long way to go. While there has been recent improvement, construction spending levels are still about half of what most consider healthy for the industry.

Source: “Construction Spending Rises in June, but Manufacturing Slows,” USA Today (Aug. 1, 2012)

The Commerce Department said Tuesday that builders broke ground on 3.2 percent more single-family homes in May, the third straight monthly increase.

Overall housing starts fell 4.8 percent last month to a seasonally adjusted annual rate of 708,000. But that was entirely because of a 21.3 percent plunge in apartment construction, which can be volatile from month to month.

The government also said April was much better for housing starts than first thought. The government revised the April starts to 744,000 — up from an initially reported 717,000 and the fastest building pace since October 2008.

And builders are more optimistic about the next 12 months. They requested more permits to build homes, a gauge of future construction. Permits increased to a seasonally adjusted rate of 780,000 — the most since September 2008.

Even with the gains, the rate of construction and the level of permits requested remain roughly half the pace considered healthy. Yet the increases add to other signs that the home market may finally be starting to recover nearly five years after the housing bubble burst.

Builders have grown more confident since last fall, in part because more people are expressing an interest in buying a home. Cheaper mortgages and lower home prices in many markets have made home buying more attractive. Many economists believe that housing construction could contribute to overall economic growth this year for the first time since 2005.

"We continue to expect housing activity to increase gradually in coming months and residential investment to make a positive ... contribution to GDP growth," said Peter Newland of Barclays

By region of the country, housing starts rose 14.4 percent in the West, but dropped in other parts of the country. The declines primarily reflected the weakness in apartment activity.

Still, the pace of home sales remains well below healthy levels. Economists say it could be years before the market is fully healed.

Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks. Some would-be home buyers are holding off because they fear that home prices could keep falling.

The economy is growing only modestly and job creation slowed sharply in April and May. U.S. employers created only 69,000 jobs in May, the fewest in a year.

Though new homes represent just 20 percent of the overall home market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to data from the Home Builders.

Source: http://bigstory.ap.org/article/us-builders-start-more-single-family-homes

Permits for new-home building — a gauge of future demand — reached its highest level last month since September 2008, the Commerce Department reported Tuesday.

New housing permits rose 4.5 percent in March, reaching an annualized level of 747,000.

But while the future of home building shows signs of picking up, actual construction started last month slowed, the second consecutive month for declines.

Builders broke ground in March on a seasonally adjusted annual rate of 654,000 homes, a 5.8 percent drop from February, the Commerce Department reported. The construction of multifamily homes — those with at least two units — posted a 16.9 percent drop last month while construction of single-family homes dropped slightly at 0.2 percent.

New-home building declined the most in the South — posting a 15.9 percent decline in March — while the Northeast saw a 32.8 percent gain and the Midwest saw a 1 percent increase.

The new-home market continues to struggle to compete against foreclosures and short sales plaguing many markets, which are often sold at big discounts. Coupled with that, new homes tend to be priced about 30 percent higher than previously occupied homes.

While builder confidence has been increasing in recent months, confidence showed a slight decrease in April, the first time it's declined in seven months, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

"Although builders in many markets are noting increased interest among potential buyers, consumers are still very hesitant to go forward with a purchase, and our members are realigning their expectations somewhat until they see more actual signed sales contracts," says Barry Rutenberg, NAHB chairman.

Source: “U.S. March Housing Starts -5.8% to 654K,” Dow Jones International News (April 17, 2012) and National Association of Home Builders

As home buyers continue to rank affordability high, more home styles are getting simpler and homes are becoming lower maintenance, according to the latest Home Design Trends Survey, conducted by the American Institute of Architects.

Simpler exterior details and the use of durable building products are growing in popularity, according to the third-quarter survey of architects, which mostly focused on community and neighborhood design.

“Consumers are favoring homes with low-maintenance exterior materials such as fiber-cement, stone, tile, and natural earth plasters,” according to the report. “This significantly outpaces any other home exterior feature in terms of its increase in popularity. Over the past year, there has been a dramatic decrease in the popularity of sustainable roofing materials, as well as in ‘cool’ roofs with high solar reflective characteristics. Tubular skylights have also decreased in popularity over the past year.”

Also, could large residential subdivisions start becoming a thing of the past? According to the survey of architects, there has been a shift away from large residential subdivisions toward smaller-scale infill development projects, which tend to focus more on affordability, access to public transportation, nearby commercial opportunities, and job centers. The survey also revealed increased interest among consumers for neighborhoods that can accommodate a growing number of multigenerational households and that encourage more interaction with the community.

Source: http://stagedsold.blogs.realtor.org/2012/01/03/trend-watch-home-design-gets-simpler/

CNNMoney.com reports that construction permits saw a modest boom in October.

According to the article, new construction permits sat at a seasonally adjusted annual rate of 653,000 for October. This marks a 10.9 percent increase from September’s revised rate of 589,000. The numbers were gathered from the Commerce Department.

Doug Roberts, the chief investment strategist of Channel Capital Research said that even with the jump, the numbers are only speculative. Builders may still be holding back.

“Getting a permit and actually beginning to build a house is the difference between getting engaged and getting married,” said Roberts in the article. “What you have is builders thinking the market might be coming back, so they’re getting permits to make sure they are ready to build if it does.”

A government report supported Roberts’ opinion, showing that new home construction was a bit lower in October. The number of new homes fell slightly by 0.3 percent to an annual rate of 628,000 that month, according to the Commerce Department. The revised annual rate for September was 630,000 units.

“Builders thought they were going to be able to get out there and get some houses done, but then they found that they didn’t necessarily want to make the stone cold commitment and want to put anything in the ground,” Roberts said. “The demand wasn’t there, so they weren’t willing to bet a serious amount of money.”

If there is an increase in demand and the number of forecloses decreases, the article said that more permits could mean more construction.

“But that’s a big ‘if’,” Roberts added.

Even with the prevailing misanthropy of many in the housing market, both permits and construction have seen increases from last year, new construction rising 16.5 percent over October 2010 and building permits rising by 17.7 percent for the same period.

Following the sector’s worst year for new-home activity on record last year, several recent reports are suggesting a pick-up in new construction.

"Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes."

Despite the October gain in sales, new-home sales for the month were at an annual rate of 307,000--still less than half the 700,000 in sales that most economists consider healthy for the housing market.

A Regional Look

A break down of sales by region in October:

• Midwest: Rose 22.2 percent
• West: Rose 14.9 percent
• Northeast: Stayed flat
• South: Declined 9.5 percent

Inventory Drops Drastically

Nationwide, the inventory of new homes for sale stayed at an all-time record low of 162,000 units in October.

"Particularly encouraging is the fact that builders continue to hold down their inventories to match the current sales rate, with the number of new homes for sale now down to a sustainable, 6.3-month supply," NAHB Chief Economist David Crowe said in a statement.

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

http://realtormag.realtor.org/daily-news/2011/11/29/new-home-sales-post-biggest-gains-in-months

WASHINGTON (MarketWatch) - New construction of U.S. houses jumped in June to their highest level in five months, the Commerce Department estimated Tuesday. Starts rose 14.6% in June to a seasonally adjusted 629,000 annualized units, stronger than the 580,000 pace expected by economists surveyed by MarketWatch. This is the highest level of starts since January. Starts of new single-family homes rose by 9.4% to 453,000 in June, while starts of large apartment units surged 31.8%% to 170,000. Building permits, a leading indicator of housing construction, rose 2.5% to a seasonally adjusted annual rate of 624,000. This is the highest level of permits since December

Read the full story:
Housing starts rise 14.6% to five-month high

After the recent tornadoes in Joplin, Missouri, Tuscaloosa, Alabama, and even here in the Tri-State storm resistant homes are getting a lot of attention. In fact, a construction company in Perry County says more and more people are asking about these strong homes.

It's the place you go to during severe weather. A place that should be your safest bet.

"Mother Nature does what Mother Nature wants to do, however, what we do with ICF is give our customers the best chance at survival," Josh Harris said.

Josh Harris builds energy efficient homes using Insulated Concrete Forms. His Perry County Company started building these homes five years ago. So far, they have built eight homes, a chapel, and several basements using ICF.

Inside the foam is a solid wall of concrete. A wall so strong, Harris says it can protect your family from flying debris during a tornado.

So far this year, there have been 1,403 tornado reports in the U.S., at least 15 of those were reported in the Tri-State.

"When you see all the storm devastation with these helicopter photos, you can see the foundations left. Our walls are the foundation," Harris said.

Josh Clark has lived in his tornado resistant home for two years.

"I wanted the family to not have to worry in the middle of the night, have to listen to the radio and get up and run to the basement. I feel very confident that we're safe in any room in the house," Josh Clark said.

He says he would encourage others to build one of these in a heart beat.

"Basically, when I hear there's a tornado coming, I call the neighbors up and invite them to come over and sit in the safe house because I don't have any problems, I don't feel, like I need to run to the basement, I just feel very safe and content," Clark said.

A shield from the danger outside, a home many say can save lives.

Harris says these houses cost about 5% more than a stick frame house, but they are so energy efficient, owners gain that money back because of lower energy bills.

Source: http://tristatehomepage.com/fulltext?nxd_id=276137

Most home owners opt to add some upgrades to a new home, which can be rolled into the mortgage opposed to paying for them later on their own. But the choices of what flooring, lighting, or other upgrades to choose can be overwhelming.

Designer Candice Olson, author and host of HGTV's "Candice Tells All," says lighting and extra wiring are key upgrades new home buyers should consider.

"Adding lighting -- or at least the wiring for it -- means you'll be able to have bathroom sconces instead of that one overhead light the builder gives you,” Olson says. “Your flat-screen TV can be where you want it. You'll have a floor outlet for the lamp in middle of the open room. And you won't be ripping out walls later to do all this."

Also, she says home owners shouldn’t forget about the exterior lighting either. "Outside lighting, plus landscaping, will set apart your house from the others in the neighborhood where buyers chose from plans A, B and C," Olson says.

As for flooring, Olson recommends hardwood floors for the main living areas, and cork floors for the basement, since there’s potential for water leakage in basements.

She also says the addition of taller baseboards, chair rails, crown molding, coffered ceilings, built-ins or a banquette also are smart investments for upgrades.

Source: “Decisions, Decisions: Add Character to Your Home With a Few Choice Upgrades,” Chicago Tribune (Feb. 4, 2011) http://www.realtor.org/RMODaily.nsf/pages/News2011020906?OpenDocument

Economist Says, Foreclosures Notwithstanding, Housing Inventory Isn't Keeping Up With Population Growth

Privately owned housing starts in December 2009 were at a seasonally adjusted annual rate of 557,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4% less than where it was in November, which had 580,000 housing starts.

Housing completion numbers also contribute to this dire picture, with December 2009 privately owned housing completions reaching a 768,000 seasonally adjusted annualized rate. That's down 11.2% from the 865,000 completions in November and down 25.3% from the 1,028,000 completions in December 2008.

Some people might shrug these statistics off considering the number of foreclosures in the market. To them, Wesbury told Steve Forbes, "Yes there's foreclosures coming into the market, but we're only starting right now ... We're starting one-third of the houses we need just to keep up with population growth, and that can't last."

There were 315,716 properties last month with foreclosure filings according to RealtyTrac. These filings include default notices, scheduled auctions and bank repossessions. Though last month's filings were 15% more than a year ago, it was 10% less than December's.

Privately owned housing starts in December 2009 were at a seasonally adjusted annual rate of 557,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4% less than where it was in November, which had 580,000 housing starts.

Housing completion numbers also contribute to this dire picture, with December 2009 privately owned housing completions reaching a 768,000 seasonally adjusted annualized rate. That's down 11.2% from the 865,000 completions in November and down 25.3% from the 1,028,000 completions in December 2008.

Some people might shrug these statistics off considering the number of foreclosures in the market. To them, Wesbury told Steve Forbes, "Yes there's foreclosures coming into the market, but we're only starting right now ... We're starting one-third of the houses we need just to keep up with population growth, and that can't last."

There were 315,716 properties last month with foreclosure filings according to RealtyTrac. These filings include default notices, scheduled auctions and bank repossessions. Though last month's filings were 15% more than a year ago, it was 10% less than December's.

Aspiriant Chief Investment Officer Jason Thomas doesn't see the foreclosure situation getting better until the labor market picks up. "So many people are getting to a point where they just can't hold on anymore and we may see another wave of that if we don't see a pretty robust turnaround in the labor market," he says.

The University of Southern Indiana Board of Trustees has approved a new degree program. A Bachelor of Science degree in sport management could be offered next fall with state agency approvals. The board also directed the finance/audit committee to approve design plans, cost estimates and construction schedules for a new $16.5 million teaching theater on campus.

Trustees’ agenda includes new degree program and new construction The University of Southern Indiana Board of Trustees met on Thursday, November 5 and approved a new degree program, the candidates for degrees for the 2009 fall Commencement, and authorized the finance/audit committee to approve design plans, cost estimates, and construction schedules for a teaching theatre on campus.

Sport management degree approved

The trustees approved a Bachelor of Science degree in sport management. The degree will help meet regional and state needs to fill employee positions in an industry that is the fourth largest in growth in the United States. The program will have four distinct student constituents. The degree is designed for college freshmen who seek to study the sport management field in pursuit of a career; for practitioners such as coaches and health/fitness managers to advance their skills, knowledge, and careers through professional development; current USI kinesiology majors seeking to expand their specialization with coursework in sports management; and for students earning a minor in sport management and/or coaching wanting to expand their knowledge. The program will be offered through the Bower Suhrheinrich College of Education and Human Services. The degree will prepare students for entry-level positions for recreation centers and theme parks, fitness clubs, collegiate and professional sport organizations and leagues, sport marketing agencies, recreational sports, and more. With state agency approvals, the degree could be offered in fall 2010.

Fall 2009 Commencement

Over 550 students who will complete degree requirements in the fall semester were approved for the December Commencement, scheduled for Saturday, December 10 in the Physical Activities Center on campus. Two ceremonies will be held that day. At 10 a.m., students in College of Business, College of Nursing and Health Professions, and Pott College of Science and Engineering will graduate and at 1 p.m. the students in the College of Liberal Arts, the Bower Suhrheinrich College of Education and Human Services, and Extended Services will march. Dr. Kevin Valadares, director of the Health Services program and the 2009 Integra Bank Distinguished Professor, will deliver the Commencement address at both ceremonies.

Design beginning on new theatre

With construction funding for a teaching theatre authorized by the 2009 Indiana General Assembly, the trustees directed the finance/audit committee to approve design plans, cost estimates, and construction schedules for the new theater. Holzman Moss Architecture of New York City, which has an international reputation for the design of theater and performing arts facilities, partnered with the Evansville firm of Hafer Associates for related engineering, will provide design services for the theatre, which will be attached to the University Center expansion currently under construction. The expansion of the University Center was designed by the same architectural team. The theater will seat 350, and has a project budget of $16,500,000. Funding for the theatre will come from state funding, private donations, and University resources. Planners and designers are meeting with USI theatre faculty and others to discuss needs and expectations for the new facility. A construction start is possible in the coming academic year. The on-campus theater replaces a deteriorated facility long operated by the University off-campus on Iglehart Avenue.

Source: University of Southern Indiana & Inside INdiana Business