NAHB Provides Economic Outlook for 2012

For those of you that like to keep up with the latest news on the state of the Housing Market I thought I would pass along this recent article from the NAHB (National Association of Home Builders) on the their economic outlook for this year.  

Parkinson Building Group

Economic Outlook

While 2012 is starting with the same kind of optimism regarding housing and the economy that prevailed at the start of 2011, there are several reasons to believe that real improvement will actually materialize this year rather than fizzling out as it did in the past, said NAHB Chief Economist David Crowe during our Feb. 11 webinar. In fact, he noted, we are already seeing improving GDP growth, stronger employment figures and slight gains in consumer confidence that bode well for a slow but relatively steady recovery in the months ahead.  Dave noted that NAHB's builder confidence gauge known as the HMI has gained seven points over the past three months, while over the same period, both housing starts and sales have charted consecutive gains and NAHB's list of improving housing markets has continued to grow. Meanwhile, household formations are finally starting to pick up after a big lull during the recession, today's very favorable mortgage rates aren't expected to creep up fast or far over the coming year, and price-to-income ratios are back to what they were prior to the boom years. Of course, all markets are local, and certain metros are already showing greater signs of growth than the national average, as demonstrated by the NAHB/First American Improving Markets Index that has been expanding over the past several months to include a geographically and economically diverse set of metros (story below).  As for the economy, our Chief Economist is forecasting GDP growth in the neighborhood of 2.2% to 2.4% in 2012, followed by more robust growth in the longer-term. NAHB's forecast also anticipates single-family housing starts will gain approximately 17% in 2012 following what was almost certainly the worst year on record in 2011. By far the brightest part of the forecast is for rental apartments, which will enjoy greater demand over the coming year as more young people take their first steps up the housing ladder. This demand accounts for a more-than 50% gain in multifamily housing starts in 2011 from 2010. But remodeling is also in relatively good shape, with the dollar amount of remodeling projects on owner-occupied homes now actually beating the dollar amount of new-home construction taking place. The bottom line for 2012 is that, while demand for new homes won't "burst forward," it will slowly improve now that the overall housing market appears to have reached a bottom and started back on the path to recovery.

A full replay of the forecast webinar is available here; please note that the event begins with an overview of the results of NAHB's recent poll on homeownership, and that the file may take a few moments to download. If you encounter technical issues in viewing this webinar, please contact Paula Pagano (800-368-5242 x8057) 

Housing Market Stabilizing with Energy Efficiency and Outdoor Spaces Still Popular

  The American Institute of Architects' (AIA) 2011 second quarter Home Design Trends survey shows stability in the residential market, but not the recovery predicted after an encouraging first quarter. High-end and custom homes are still faring best among new construction projects, while first-time home buyers remain timid. What has changed in the luxury and high-end sector is that specialty rooms and additions, as well as high-end features within a home, are mostly declining. The exception to that trend is a strong rise in home offices and an equally impressive number of requests for outdoor living. Remodeling and additions, a persistently strong segment of the residential market, continues to show moderate gains thanks to clients looking for accessible spaces, energy efficiency, and home technology upgrades.

"Demand for home offices for telecommuting remains strong," says Baker, adding that "trends toward informal lifestyles, as well as more home-centered activities, have helped maintain interest in outdoor living areas and mudrooms." Other requests still on the rise focus on accessibility and energy efficiency. Backing up those trends, the most requested products include those promoting energy-savings and management, as well as wireless communication systems. Seventy percent of respondents saw requests for simple green upgrades such as alternative or additional insulation grow over the past three months. With regard to accessibility, the most desired items include first-floor master suites, open showers with no floor level changes, ADA-compliant faucets and door handles, and ramps or elevators.

Missoni for Target: Home Fashions

Target is partnering with Missoni, the iconic knitwear empire recognized as a symbol of Italian luxury, to introduce an affordable, limited-edition collection for fashion and home. The is the largest limited-time designer collection to date for Target. The products will only be available September 13th through October 22nd with some items available through December, as available.

Since the brand was founded in 1953, Missoni has been acclaimed worldwide for it's unique knitwear in eclectic-mix-and-match patterns, colors, and textures.  Known for it's fashion and luxury goods, Missoni has created many collections sold at 37 free-standing boutiques, leading department stores and retailers around the world. 

Here are just a few items from Missoni's lookbook:

 

You can see more of their Look Book here.

Shutters: A New Twist on an Old Classic

Shutters serve several purposes, aesthetically and functionally.  Aesthetically, they enhance the look of any room – whether you are looking in or out. Also, they provide architectural detail to give you that “pop” and appeal.  Functionally, exterior shutters help with temperature control and can protect windows from heavy downpour.  

Here are some great shutter ideas to get your creative juices flowing.....

These shutters are attached to the exterior of the windows--giving the house facade added detail and protection. 

I love the way that Floor-to-ceiling plantation shutters add a dimension to the wall molding in this room.

These shutters provide a clean and modern feel in this bedroom. 

I love the intricate and striking detail of these shutters.  

Classic shutter doors keep this southern porch cool during the hot summer months. 

We love these canary yellow shutters against the sky blue walls.

Parkinson Building Group was able to add curb appeal with these exterior shutters.  The architectural detail provided has made this one of our favorites. 

Little Rock Housing Market Ranks #4 in U.S.

Here at Parkinson Building Group we love to bring you updates on trends and styles but from time to time also want to help keep everyone informed on what is going on in today's real estate marketplace.  

That is why I was interested to see a few articles on CNBC recently that discussed both the housing market nationally and locally.  Nationally, the Commerce Department said housing starts increased 14.6 percent to a seasonally adjusted annual rate of 629,000 units, the highest level since January.

Locally, Little Rock came in at #4 in a list a cities virtually untouched by the housing bust.  

4. Little Rock, Arkansas

Change from national peak: +2.6% 
Current ZHVI: $123,300 
Year-over-year change: -2.70%

Comparison to National Average 
Underwater mortgages: 27.5% below the national average
Foreclosure re-sales: 65% below the national average

 All of this is good news for the housing market here in Central Arkansas.  And we at Parkinson Building Group are excited about the year ahead.