Housing Trends Update—October 2012
October 12, 2012
Housing prices for existing single-family homes rose slightly in August, while new home prices jumped to a level not seen since the 2007 peak, this according to the October release of the ULI Real Estate Business Barometer—a monthly online resource that tracks key economic and financial trends, published by the ULI Center for Capital Markets and Real Estate. Each month, the Terwilliger Center highlights selected data housing trends from the Barometer. Here’s what caught our eye in the October release:
- Multifamily building permits decreased 1 percent to 261,000—down 5 percent from the month before, but still showing strong gains compared to the past four years.
- Multifamily housing starts, however, were up 5 percent to 212,000 at the end of August.
- Developers of single-family homes continue on a positive streak—the number of permits has increased for the 16th consecutive month, up 1.6 percent in August. Single-family permits are at its highest level since spring 2010.
- Existing single-family home prices rose ever so slightly, up only 0.1 percent in August. While the prices of new single-family homes jumped 11.2 percent to $256,900—up 17 percent from August 2011.
- During the second quarter of 2012, rental rates continue to increase, up 1.1 percent to $1,293—5 percent higher than a year ago. Apartment vacancy rates, not surprisingly, are down 4.8 percent.
Bottom-line: the housing market is still gathering strength. Homebuilder confidence continues to gain momentum as new home sale prices show significant gains, while apartment dwellers endure higher rents. To view a complete snapshot of current housing trends, please visit the ULI Real Estate Business Barometer at http://urbanland.uli.org/EconomyMarketsTrends/Barometer.