WET
WEATHER CAUSES SLIGHT DECLINE IN BUILDER CONFIDENCE
The nation's homebuilders continue to remain positive about
the strength of the housing market, though above-average precipitation
helped push confidence levels down in February, according
to the National Association of Home Builders/Wells Fargo Housing
Market Index (HMI). The seasonally adjusted HMI fell two points
to 68 in February. The decline was due to a three-point decrease
in the component gauging current sales activity, which posted
a reading of 74. Many builders noted that wet weather conditions
influenced their responses. The remaining two components of
the index, sales prospects for the next six months and buyer
traffic, held steady at 78 and 50, respectively.
"The main concern builders are citing right now pertains
to availability and pricing of lots for development -- which
itself is a symptom of strong buyer demand," said NAHB
Chief Economist David Seiders. "Demand, in turn, continues
to be driven by solid job and income growth, low mortgage
rates and the investment aspects of homeownership."
U.S. HOUSING STARTS UP 4.7 PERCENT IN JANUARY The
seasonally adjusted annual rate for privately owned housing
starts increased 4.7 percent to 2.159 million units in January,
the highest pace experienced in 21 years, according to a joint
report released by the U.S. Census Bureau and the U.S. Dept.
of Housing and Urban Development. January's housing starts
were 11.6 percent above the pace recorded one year earlier.
Single-family housing starts rose 2.7 percent to a rate of
1.76 million units, while starts for buildings with five or
more units reached 355,000. Regionally, the South posted the
largest increase in housing starts at 18.8 percent, followed
by a 1.9 percent increase in the West. The rate for privately
owned housing starts decreased in the Midwest and Northeast,
falling 12.5 percent and 23.9 percent, respectively.
RECORD NUMBER OF U.S. METRO AREAS POST DOUBLE-DIGIT
HOME PRICE GAINS More metropolitan areas experienced
double-digit price appreciation in median existing-home prices
during the fourth quarter of 2004 than ever before, according
to a recent NAR survey. Nearly half of the 129 metro areas
tracked posted double-digit increases, and only four areas
showed small declines. Previously, the record number of metro
areas with double-digit home price appreciation was 49, experienced
during the second quarter of 2004. All six of the California
metro areas included in the study recorded double-digit price
increases. The Riverside-San Bernardino area experienced the
second-highest price increase in the country, rising 34.7
percent from the fourth quarter of 2003. Other California
metro areas posting double-digit home price appreciation were
Sacramento (31.5 percent), San Diego (24.8 percent), Los Angeles
(23.7 percent), Orange County (19.1 percent) and the San Francisco
Bay Area (14.3 percent).
Information provided by - C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.
