alabama new construction report july 2010 · 2010-09-09 · the yoy decline of housing permits this...
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Alabama New Construction Report – July 2010
Monthly Indicator Recent Figures Trends
© 2010 ACRE All Rights Reserved
Local
During the month, 5 out of the 27 associations (19 percent) reported improvements from their July 2009 building starts. Only eight
associations had increases from their June 2010 housing starts, including DeKalb HBA (33.3%), Enterprise HBA (30.0%), HBA of
Dothan/Wiregrass (21.1%), and Greater Gadsden HBA (14.3%). Every local home building market is unique, and significant
fluctuations from one area to another are anticipated for the foreseeable future.
Permits July ‘10 figures show a decrease of 27.1 percent from July ’09. Permits have also decreased 9.8 percent from the month prior.
The YoY decline of housing permits this month (719 from 986) represents the 3rd consecutive decline after a six-month favorable growth period which began back in November 2009.
Year-to-Date starts are up
10.3% from last year despite
recent retreat in monthly
housing starts.
Starts Building starts for July 2010 experienced a slight decrease from June 2010 of 1.3% percent but were 16.2 percent lower than July 2009.
State July statistics indicate a continuing decline in housing starts. As new home sales were significantly down in July, the recent retreat in starts appears to be justified. New home sales in our five metro markets decreased by 44.3% from last July and 60.9% from the prior month. Overall inventory remains consistent with prior months, marked by a slight 2.9% decrease over June. Statewide new construction supply is currently estimated at 3,250 units, a decline of 22% +/- from last July. According to McGraw-Hill, residential contract values increased by 7% in July ‘10 versus July ‘09 to $272 million, consistent with July ‘01 @ $279 million (July 10-year average = $328 million). YTD residential contract values are up 11% from last year. Alabama construction employment was down 0.3% to 87,700 from last month and is down 4.8% from July ’09. Elevated statewide unemployment figures, competition from distressed existing home inventory, and lack of ability to finance new production continue to challenge our new construction market. Short-term concerns include the slowing of the national GDP that translates into economic uncertainty and the recovery of our coastal region.
July 2010 719 June 2010 798 <9.8%> July 2009 986 <27.1%> July ’07-’09 1310 <45.1%>
Current Month vs. Prior Month vs. Last Year (YoY) vs. Last 3 Year Avg.
July 2010 760 June 2010 770 <1.3%> July 2009 907 <16.2%> July ’07-‘09 1338 <43.2%>
NOTE: This representation is based in whole or in part on data supplied by the reporting municipalities/boards/associations. ACRE does not guarantee
and is in no way responsible for its accuracy.
Current Month vs. Prior Month vs. Last Year (YoY) vs. Last 3 Year Avg.
Commentary
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2
3
4
0
500
1,000
1,500
2,000
Alabama New Single Family Building Permits Issued
0
20,000
40,000
60,000
80,000
100,000
US Total New Single Family Building Permits Issued
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
2009 July Aug Sep Oct Nov Dec
2010 Jan Feb Mar Apr May Jun Jul
Year-Over-Year Change for Building Permits
Alabama U.S.
5
6