RE/MAX Results of the Twin Cities Hits Nationwide Recognition as the Best RE/MAX Brokerage
April 7, 2014
Across the U.S and the Twin Cities Home Builders Have Started the Season's Construction of New Homes
According to April's National Association of Home Builders (NAHB)/First American Leading Market Index rose one point to .88 from .87 in March. The index measures how close top metro housing markets and the US market are relative to their last normal market activity. A sum of 153 residential housing markets or approximately half of all markets stood at or above the national index and 59 markets’ indexes stood at or above one, meaning those markets equaled or surpassed the last period of normal market activity.
Single-Family Homes, Home Prices, & Employment
The index measures both national and Twin Cities single-family permits, home prices, and employment in the past 12 months and divides that by the last normal annual level. For pulling building permits and determining norms in home prices, the last traditional housing period is 2000-2003 and for employment 2007.
2 Yrs Improvement In Twin Cities Home Builders Improving Markets
Minneapolis - St. Paul Twin Cities, Minnesota
A moratorium on building new houses in the southwest Minneapolis is welome news in the the Twin Cities housing market last week. Minneapolis Public Radio announced the deal on April 3, stating that: "The moratorium would be lifted next week under a deal announced today. Minneapolis City Council Member Linea Palmisano has brokered a compromise that would end the moratorium she sponsored after receiving a barrage of complains from five neighborhoods in her district".
Rolled into the proposal, which the council's Zoning & Planning Committee approved, the City of Minneapolis will lift the moratorium and respond favorably to new home demolition applications and new construction permits in the five affected neighborhoods. This goes into effect on April 11, if the full council votes in favor of it, according to the article titled Deal reached to end Mpls. home building moratorium. This will help Twin Cities home builders move forward. Their challenges often include waiting for housing ordinances, permit approvals and industry related rules to become clear.
For those employed when spring weather lets hammers and saws fly, the unprecedented Twin Cities building boom welcomes the sounds of new construction.
National Improving Markets
The index has been moving steadily upward for two years from a low of .78 in April 2012. At the same time, the number of markets at or above their last normal level of activity increased from 34, with 19 in states high in energy production, to 59, with 30 in energy producing states (Texas, Louisiana, Montana, North Dakota, Oklahoma and Wyoming). The slight expanse into states with other economic bases runs parallel with broader economic growth in the US.
Nationally the average metro (308 or 88%) has experienced an economic recovery returning to normal home prices and traditional home sales - but employment drags,; 40 markets or 11% are back or above normal employment levels. Housing is even further behind; only 24 markets or 7% are back to or above normal levels of single-family permit issuance.
In an average housing market, home building is counted on for providing an outsized boost to economic growth and job creation. In the last year or two, home building has finally returned to its right place and leading employment opportunities in this typical economic role.
National Association of Home Builders Improving Markets Report for August 2012:
NAHB's new method of market reporting helps prospective Twin Cities home buyers better understand housing market trends before making a purchase. Housing markets are local where economic recovery is underway; clear reporting will help builders keep pace with costs and home prices.
Factors contributing to the Twin Cities home builder improving markets report result in moderating Twin Cities residential investor activity, creating a real estate climate better for both buyers and sellers. Buyers aren't as likely to find homes snatched up by cash investors before they even get to see them... and sellers are seeing stronger prices. The market is continuing to normalize. Federal Reserve Chairman Ben Bernanke, in his 2012 Monetary Policy Report before the Committed On Banking, Housing and Urban Affairs referenced the norm that historically the housing market, helps economic conditions. "Construction has increased, especially in the multifamily sector," he stated. With eyes on the Minneapolis real estate housing recovery as it strengths, many watch carefully just which housing markets are showing sustained growth.
The Improving Markets Index (IMI)
A total of 80 metropolitan statistical areas across 32 states and the District of Columbia were listed as improving housing markets on the National Association of Home Builders/First American Improving Markets Index (IMI) for August, released today. This included 75 markets that retained their places on the list along with five new ones, while nine areas fell from the list due primarily to slight movements in house prices.
The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. The five metros that were added to the list this month include:
Miami and Palm Bay, Fla.
Terre Haute, Ind.
and Lubbock, Texas.
Home Buyers Carry Positive Momentum
“The list of improving housing markets in August includes metros across every region of the country, all of which have distinctly different characteristics in terms of their economic and employment bases as well as other factors,” noted Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “One thing that most markets have in common, however, is the tight lending environment for both Minneapolis home builders and buyers that continues to drag on their positive momentum.”
“The fact that we continue to see a strong core of metros showing up on the improving list each month adds to the growing evidence that the emerging housing recovery has a solid foundation on which to build as housing returns to its traditional role of driving economic growth,” observed NAHB Chief Economist David Crowe.
Home Builders See Signs Of Improving Market
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six months following those measures’ respective troughs before being included on the improving markets list.
REMEMBER: All real estate is local and what is happening in your given neighborhood may be unique in comparison with the overall metro area. A complete list of all 80 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in August, is available at www.nahb.org/imi.
The NAHB/First American Improving Markets Index (IMI) tracks housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data:
* employment growth (Census)
* house price growth (Freddie Mac)
* single-family housing growth (Census)
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Contact Home Destination at 612-396-7832 if you are building a new home in 2014. Buying a Twin Cities home is still affordable. Making your experience finding a great place to live a rewarding and fun experience is a true privilege.
Jenna Thuening, a Twin Cities residential Realtor bring news of the Twin Cities home builder improving markets report.
11200 W. 78th St
Eden Prairie, MN 55334 Phone: 612-396-7832
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