Posted in Austin Market | Posted on 01-26-2012 | Written by Metrostudy News
(Austin, TX– January 26, 2012) Job growth and stable inventory levels were a positive for the Austin housing economy during 2011, and they may indicate a better year for 2012. This is according to Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
In the 12 months ending in December 2011, 16,100 net jobs were gained in the Austin MSA. “In our view the most promising information from the most recent job figures is the minimal number of jobs lost in the last year in the Government sector. As recently as Spring 2011 reports indicated that job losses in these sectors could be significant in 2011 and 2012,” said Eldon Rude, director of Metrostudy’s Austin Region.
During 4Q11, 1,269 homes were started, up 17% from 4Q10. During that same time, 1,552 homes were closed, up 8% from 4Q10. The annual rate of starts in 4Q11 was 6,105 units, up 5% (261 units) from 4Q10. The annual rate of closings in 4Q11 was 5,941 units, down 7.8% (506 units) from 4Q10. “The annual rate of starts has been generally flat for nearly 3 years. The fact that annual starts exceeded annual closings in 2011 suggests that with inventory levels so low, new demand is resulting in the need to start more homes,” said Rude.
New home inventory stood at 3,047 homes at the end of 4Q11. Inventory has remained around 3,000 for the last three years. “These stable inventory levels, along with healthy resale inventory levels and steady demand, have allowed the building community to maintain pricing through much of the downturn in the industry which began in 2007,” said Rude.
“While we expect the demand fundamentals of continued population and household growth, a tight rental market, and improving consumer confidence will result in greater new home demand in 2012 (as compared to 2011), the continuation of strict mortgage underwriting criteria will serve to limit the increase in new production over what
might otherwise be possible in the coming year,” said Rude.
For information contact:
Eldon Rude @ 512.473.2250 x12
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.