Homebuilder Confidence Boosts Housing Starts In September
According to the Commerce Department, the number of single-family Housing Starts increased to 452,000 units in September, a 19,000 improvement over August.
A “housing start” is a new home on which construction has started.
Housing Starts data is surveyed and broken-down by housing type:
- Single-Family Housing Starts
- Multi-Unit Housing Starts (2-4 Units)
- Apartment Building Housing Starts (5 or more units)
The government logs each type separately, but also lumps them into a single, comprehensive figure within its reports. For this reason, headlines surrounding the story seem contradictory.
For example:
- Marketwatch : Housing starts rise for 3rd straight month, up 0.3%
- CNN : Housing starts jump to 5-month high
It’s single-family homes that most Americans purchase, though, and that’s why single-family starts are the numbers worth watching. As 75% of the market, it’s more relevant than the joint numbers most commonly reported by the press.
In September, single-family starts did move to a 5-month high but buyers and sellers in Blue Ridge and Blairsville should keep the figures in perspective. Just because starts are rising doesn’t mean the housing sector has turned around for good.
The first reason why is because, in September, starts were 75 percent less as compared to 5 years ago at the peak of housing. And if you feel that’s an unfair comparison, even as compared to the last 12 months, September’s data was tens of thousands below average.
Second, September’s Margin of Error happened to exceed its actual measurement. This means that the 4 percent in starts may actually turn out to be a loss of 4 percent (or more!) once the data is collected in full.
If there’s a reason to think the New Homes market is coming back, though, it’s that home builder confidence is also at a 5-month high. Foot traffic is rising and builders are optimistic about the next six months. This could mean higher sales prices and less chance for negotiation.
Buyers in search of new homes in the North Georgia Mountains may find it tougher to make a deal the closer we get to 2011.
October 17th 2010 North Georgia Mountain Front Porch View
I took this picture while I was out showing Luxury Cabins For Sale in Blue Ridge, GA. this past Friday. This Incredible Front Porch View was taken from a Log Cabin For Sale in Overlook Blue Ridge. The view is Absolutely Amazing, and I am not sure which was more impressive…that or the Cabin itself!
If you would like more information on this Log Cabin For Sale or any other Home or Cabin that you have see online, I would be more than happy to offer my assistance. You can Call Me at 706.994.8686, or Contact Me and I will get back to you in a timely manner.
Make it a GREAT week!
October 15th 2010 North Georgia Mountain Front Porch View
This picture was taken in Fannin County just outside of Blue Ridge, GA. Unfortunately this Cabin is not For Sale to my knowledge. I actually took this pictures about a month ago as I was headed out to visit with a client that was building a cabin in the area. There are however several Cabins For Sale within Cohutta Overlook where this Cabin is located.
Please let me know if you would like for me to assist you in finding a Cabin with an Incredible View like this one in the North Georgia Mountains. You can call me at 706.994.8686, or Contact Me and I will be more than happy to assist you with all your Blue Ridge Real Estate needs.
Fall Season At The Southern Tree Plantation
Fall Season At The Southern Tree Plantation
When: Saturday’s and Sunday’s In October
Where: Southern Tree Plantation
Fall is in the air and so is all the Fun at the Southern Tree Plantation. There you can pick your Pumpkins, Take Hayride, Kids can enjoy a Train Ride through the Plantation, there is a Maze, Farm Animals, Marshmallows for Roasting, Gifts, and so much more! Great Family Fun in the North Georgia Mountains.
Located in the heart of the North Georgia Mountains in Union County, Southern Tree Plantation is an active plantation growing thousands of pumpkins and Christmas trees. The Plantation is loaded with fun activities and things to do during our Fall and Christmas seasons. We are open to the general public during this time. We also specialize in outdoor weddings and large group events which are available year around
Could Poor Jobs Data Hint At Lower Mortgage Rates?
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report from the month prior. This month, though, because the first Friday of the month was also the first day of the month, the report was delayed one week.
The report hit the wires at 8:30 AM ET this morning.
More commonly called “the jobs report”, the government’s non-farm payrolls data influences stock and bond markets, and, in the process, swings a big stick with home affordability figures in Blue Ridge, GA. and nationwide.
Especially in today’s economic climate.
Although the recession has been deemed over, Wall Street remains unconvinced. Data fails to show the economy moving strongly in one direction or the other and, absent job creation, economists believe growth to be illusionary.
Consider:
- With job creation comes more income, and more spending.
- With more spending comes growth in business
- With growth in business comes more job creation
And the cycle continues.
The prevailing thought is that, without jobs, consumer spending can’t sustain and consumer spending accounts for two-thirds of the economy. No job growth, no economy recovery.
But there’s another angle to the jobs report, too; one that connects to the housing market. As the jobs market recovers, today’s renters are more likely to become tomorrow’s homeowners, and today’s homeowners are more likely to “move-up” to bigger homes. This means more competition for homes at all price points and, therefore, higher home values.
And that brings us to today’s jobs data.
According to the government, 95,000 jobs were lost in September. Economists expected a net loss of 5,000. However, if public sector jobs are excluded from the final figures, jobs grew by 64,000. This is a positive for the private-sector, but still trailed expectations.
Wall Street is voting with its dollars right now and mortgage bonds are gaining, improving mortgage pricing.
So, although the September 2010 jobs report doesn’t reflect well on the economy overall, home affordability in the North Georgia Mountains and around the country should improve as a result.
