In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses construction jobs.
- Foot traffic can provide great insight into the direction of future home sales. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.
- Foot traffic in the area covered by the North Central Mississippi Board of REALTORS® eased 9% in April of 2012 compared to the same period in 2011.
- The level of traffic remains strong, but only time will tell whether traffic for the year as a whole is stronger than 2011 or if demand has been pulled forward in this market.
With a win by the socialist party in France’s presidential election, bond investors will be shifting money into U.S., U.K. and Germany. That means lower mortgage rates, at least temporarily, for U.S. consumers.
The 10-year borrowing rate for German bonds fell and now stands at 1.58%. By contrast, the French government has to pay a 2.78% interest rate. The comparable U.S. and U.K. borrowing rates are 1.86% and 2.00%, respectively.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses the unemployment rate and payroll data.
- Foot traffic provides a strong indication of future home sales. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.
- Year-over-year foot traffic levels grew steadily over the last 5 months in the area covered by the Jefferson City Area Board of REALTORS® (Missouri).
- Foot traffic rose 64% in February of this year relative to February of last year, but that gap eased back to 23% in April.
- Steady employment growth and record affordability have peaked interest in housing, but new, higher fees at the FHA and tight private lending remain headwinds for the market.
- Fresh data on employment conditions at the metro level was released this morning. This data has some lag time so the latest information is as of March.
- Jobs are one of the important factors affecting home sales. Among the areas where the housing market crash was brutal, Phoenix and Miami look poised for a sustainable recovery. Phoenix added 40,300 jobs in the past 12 months, while Miami-Ft. Lauderdale added 32,200. Job gains were light in Orlando and Ft. Myers. Las Vegas and the non-coastal California markets were also a step slow in jobs recovery. Turning to the Midwest, Detroit is coming back with 26,600 net new jobs, but Cleveland is showing no traction.
- As for small towns, Ft. Wayne (IN) and all the small towns across North Dakota did very well. The fastest flyers were Lafayette (LA) and Odessa (TX) where they have added 10% or more jobs from just 12 months ago.
- Job performance for every market is shown here.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses ADP employment numbers and mortgage purchase applications.
Realtors® report that 12 percent of residential sales were to buyers for relocation purposes—i.e., a job move, retirement, etc., according to the latest Realtors® Confidence Index. The percentage decrease in February is probably due to seasonal issues. Overall, relocation moves should increase as the economy continues to recover.
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses construction spending.
REALTORS®’ Commercial Markets Stabilize in First Quarter 2012
Commercial real estate in REALTOR® markets recorded broader stabilization trends during the first quarter of 2012. Based on the results of the April Commercial Real Estate Market Survey, overall market activity registered slight improvements compared with the fourth quarter 2011.
On the leasing side, activity rose one percent over the previous quarter. Vacancies declined for most core properties, leading to a lower level of rent concessions. The decline in rental rates also slowed, indicating markets in recovery. The majority of respondents indicated that tenants continue to seek smaller commercial spaces—there was an increase in demand for space in the 2,500-4,999 square feet.
Investment sales rose 3.0 percent from the fourth quarter. Also, 70.0 percent of REALTORS® reported completing a sales transaction during the fourth quarter. Compared with a year ago, sales also recorded an increase—up 8.0 percent. Prices continued their decline, by six percent compared with the fourth quarter. Cap rates declined for office, industrial and development properties, but rose of retail, multifamily and hotels.
The average transaction price remained steady at $1.1 million in the first quarter. Commercial practitioners continue to find financing as the top obstacle in closing deals, followed by the pricing gap between buyers and sellers.
For the full report along with regional details, click here.