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| Michael Bull |
ATLANTA, GA– As the single-family housing market continues
to recover, prices and sales volume are nearing pre-recession levels.
Furthermore, with the population and household formations rising, the housing
market shows no signs of slowing down.
Those were a few of
the points made during the most recent episode of the “Commercial Real Estate
Show” radio program, hosted by Michael Bull of Bull Realty. Bull and his
guests discussed home sales, supply and demand, and land costs.
 |
| Brad Hunter |
The lack of supply
of newly built homes and available lots is causing an increase in pricing, said
Brad Hunter, chief economist of MetroStudy.
“Compared to this
time last year, prices are up approximately 15 percent nationally,” said Jed
Smith, managing director of quantitative research for the National
Association of Realtors. A medium-priced house today is selling for $212,000,
compared to $176,000 in 2012, he said.
 |
| Jed Smith |
“We have tracked
submarkets where builders have raised prices by as much as 20 percent during
the last 12 months,” Hunter said.
By the end of 2013,
the volume of home sales is expected to reach more than 5.2 million sales, up
13 percent from 4.7 million sales in 2012, Smith added.
“In Class A and B submarkets around the country, there’s a
one- to one-and-a-half-month supply of new homes and as low as a 10- to
15-month supply of lots,” Hunter said. Depending on the market, the normal
supply of newly built homes is about two-and-a-half months, he added.
 |
| Steve Palm |
Nationwide, two
kinds of supply shortages are occurring — one of newly built homes and one of
building lots, Hunter said. Developers are complaining that they can’t find
lots in areas where there used to be a plethora to choose from, he added.
Developable lots are
disappearing at a rapid rate in Class A submarkets, said Steve Palm,
president of Smart Numbers. “In the Southeast, lots have been gobbled up in
central locations in Atlanta, Charlotte and Orlando,” Palm said.
“We have been saying
since 2011 that we think America will face its biggest land shortage in
history,” added Sebastian Drapac, executive director of Drapac USA.
 |
| Sebastion Drapac |
Pent-up demand, the
growing population and a continued trend of household formations all indicate a
booming housing market is on the horizon, guests said. “It’s going to be an
interesting next two years,” Drapac said.
The entire episode
on the rebirth of the housing market is available for download at www.CREshow.com.
For a complete copy of the company’s news release, please
contact:
Stephen Ursery
The Wilbert Group
404.405.2354
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