HOUSTON (Houston Chronicle) – Housing starts increased 6 percent between fourth quarter 2008 and the same in 2009, according to a Metrostudy report released Wednesday.
Builders started 4,576 homes last quarter and closed on 6,323. There were 12,164 inventory homes either finished or under construction in the Houston area in December.
However, there were still 65,925 vacant lots ready for development at the end of 2009. That translates to a 42.3-month supply, well above Metrostudy’s idea of a healthy market equilibrium range of 20 to 24 months.
Builders are expected to develop and sell between 18,000 and 20,000 homes in 2010. Starts and closings in 2009 totaled 18,687 and 22,902, respectively.
TX Homebuilder Dyn-o-mite!
Joined: 09 Feb 2009
Posts: 247
Location: Houston Metro
Hopful...good post...the Chronicle actually reported the metro study report correctly.
The article also pointed out the "deals" are mostly gone...sorry buyers, you waited for the bottom and missed. In addition, the forecast for Houston 2010 is a repeat of 2009 or "flat". Remember "flat" only indicates no change....I recall when they said 2006 was going to be "flat"... a repeat of the record year 2005 with about 60K starts and 100K new jobs.
To add a few points:
GOOD...The numbers indicate builders closed about 4K more homes than they started, lightening their overbuilt inventory that was supposed to be gone 4Q07.
GOOD...Builders are starting a higher percentage of contracts vs. specs than the typical Jan. spec rush.
BAD...There are builders with contracts they can't start because construction loans are not available.
So So...Some construction lenders will offer construction financing only to builders that agree to build on the lenders inventory lots...typically at above market value.
The best news is we are in the best city and state in the country for new home construction and we are about to enjoy a sunny 60 degree day...who can beat that?
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