Posted in Philadelphia - Market | Posted on 02-18-2014 |
Written by Metrostudy News
(Philadelphia, PA – February 18, 2014) The Philadelphia
region housing market cannot seem to find its exact footing in the marketplace.
There are signs of growth in the market but also some signs that the housing
market is not ready to take off just yet. This is according to a recent report
by Metrostudy, a national housing data and consulting firm that maintains the
most extensive primary database on residential construction in the US housing
market.
The Philadelphia region recorded 2,420 closings for 4Q13.
This is a decrease of 18 % from 3Q13 where we saw 2,981 closings. Starts for
4Q13 also took a dip to 2,450 which is a 27 % decrease from 3Q13 where there
were 3,363 starts. “When looking at the numbers compared to last quarter it
would be quick to surmise that the market has slowed down a good amount. When
you consider that the 4th Quarter is typically a slower period in terms of
volume in this region and the record amount of snow that fell this quarter it
would make sense that the activity level would level off a bit,” said Quita
Syhapanya, Regional Director of Metrostudy’s Philadelphia Market.
Total housing inventory (model homes, under construction
units and finished vacant homes) for the Philadelphia region has slightly
increased by 53 units which is a .7 % bump up. The number of homes under
construction went down to 4,057 units compared to the 4,080 units under
construction in 3Q13. Finished vacant inventory increased by 71 units to 2,951
for 4Q13. There was a modest increase by 5 units for the model homes which
ended the quarter with 509 models.
Currently at the close of the fourth quarter, there are
26,251 Vacant Developed lots in the Philadelphia Region. That represents a
1.92% decrease in developed lots in the region from the 26,765 lots available
in 3Q13. When looking back at the baseline survey for Metrostudy in 2Q13 to
4Q13 there was a decrease of 6.51% in VDL.
In terms of adding “lots”, back to the market Delaware
County, PA added the most in percentage change at 19.68%, followed by Bucks
County, PA at 9.54%. The Philadelphia Region based on estimates for an
annualized starts rate, has 26 months of supply “Prime finished lot supply is
scarce across the Philadelphia Region. Attractive lots that are not spoken for
with desirable locations are few and far between or come with a significant
premium,” said Syhapanya.
“If you are a glass half full kind of person it would be
reasonable to assume that the 4th Quarter being the least active of quarters in
this region had a huge bearing on the slow-down in activity. Some other factors
to consider are obviously the government shutdown that lasted 16 days and ended
as the 4th quarter began, along with mortgage rate hikes have attributed to the
lagging activity this quarter. The absence of the first time home buyer is
playing a major role in the housing market not only here but across the
country. In addition, the record amount of snow in this region could have
greatly affected both starts and closings. So we can expect the housing market
to pick the momentum back up in early 2014 and continue throughout the year
along with continued price increases at a modest rate,” said Syhapanya.
About Metrostudy
Metrostudy is the leading provider of primary and secondary
market information to the housing and related industries nationwide. Metrostudy
provides research, data, analytics and consulting services to help builders,
developers, lenders, suppliers, retailers, utilities and others make investment
and business decisions every day. For more information, visit
www.metrostudy.com
About Hanley Wood
Hanley Wood, LLC is the premier information, media, event,
and strategic marketing services company serving the residential, commercial
design and construction industries. Utilizing the largest editorial- and
analytics-driven construction market database, the company produces powerful
market data and insights; award-winning publications, newsletters and websites;
marquee trade shows and executive events; and strategic marketing solutions. To
learn more, visit hanleywood.com.
Source: MetroStudy
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