{"id":8059,"date":"2018-02-07T00:00:00","date_gmt":"2018-02-07T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/could-the-inventory-crunch-worsen\/"},"modified":"2018-02-07T00:00:00","modified_gmt":"2018-02-07T00:00:00","slug":"could-the-inventory-crunch-worsen","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/could-the-inventory-crunch-worsen\/","title":{"rendered":"Could the Inventory Crunch Worsen?"},"content":{"rendered":"

\n<\/p>\n

<\/p>\n

Housing<\/a> permits, a gauge of new-home activity, slipped in the final quarter of 2017, which could worsen a housing shortage already shaking many markets across the country.<\/p>\n

Single-family permits are running at only 56 percent of normal activity, according to the National Association of Home Builders\/First American Leading Markets Index.<\/p>\n

\u201cWe are concerned with the sluggish permit activity,\u201d says Robert Dietz, chief economist at the National Association of Home Builders. \u201cThe weak permit numbers indicate that builders may be hesitant to start projects as they contend with supply-side hurdles, such as rising material prices and labor shortages.\u201d<\/p>\n

Permit levels are at or above normal in only 62 of the 337 metro areas tracked in the NAHB\/First American Index, which is a drop of 7.5 percent compared to the third quarter of 2017.<\/p>\n

Despite sluggish permits, the index showed that many markets are showing a stronger recovery in their economy and home prices. Housing markets in 195 of the 337 metro areas tracked nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2017. The LMI measures three components: housing permits, employment, and home prices.<\/p>\n

Employment is at 98 percent of normal activity, while home price<\/a> levels are well above normal at 158 percent. Single-family permits were the only of the three components to see a decline in the fourth quarter of 2017.<\/p>\n

Overall, the index shows the fastest-growing new-home metro areas are in the South and West, says NAHB Chairman Randy Noel.<\/p>\n

The major metros scoring the highest on the LMI\u2014meaning they are performing at the highest levels compared to their historic normal market level\u2014are Baton Rouge, La.; Austin, Texas; Honolulu; Oxnard, Calif.; and Provo, Utah. Among smaller metro areas, the metros scoring the highest in besting their own previously normal market levels are: Odessa, Texas; Midland, Texas; Walla Walla, Wash.; Florence, Ala.; and Gadsden, Ala.<\/p>\n

\"\"<\/p>\n

\u00a0<\/p>\n

Source: National Association of Home Builders<\/em><\/p>\n

\u00a0<\/p>\n<\/div>\n

Realtors <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Housing permits, a gauge of new-home activity, slipped in the final quarter of 2017, which could … Could the Inventory Crunch Worsen?<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":8060,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[518,12908,543,344,41,818,479,15282],"class_list":["post-8059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-america","tag-home","tag-home-buying-guide","tag-housing","tag-property","tag-real","tag-realtor","tag-ross"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/02\/NAHB-chart.png?fit=709%2C522&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":831,"url":"https:\/\/amazingproperty.com.ng\/blog\/housing-starts-cool-off-in-january\/","url_meta":{"origin":8059,"position":0},"title":"Housing Starts Cool Off in January","author":"Amazing Property","date":"February 17, 2017","format":false,"excerpt":"Housing starts dropped 2.6 percent on a month-over-month basis in January. Overall housing production declined in January after an unusually robust reading in the multifamily sector in December, but economists were unfazed. \"As we move forward in 2017, we can expect the multifamily sector to continue to stabilize and single-family\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Housing Starts","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/UK_Housing_Market32.jpg?fit=446%2C269&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3704,"url":"https:\/\/amazingproperty.com.ng\/blog\/more-homeowners-tackle-renovation-projects\/","url_meta":{"origin":8059,"position":1},"title":"More Homeowners Tackle Renovation Projects","author":"Amazing Property","date":"April 21, 2017","format":false,"excerpt":"Homeowners are sprucing up their properties and undertaking more remodeling and repair projects, according to a recent study. The Leading Indicator of Remodeling Activity, released by the Joint Center for Housing Studies at Harvard University, shows an annual growth in home improvement and repair expenditure this year that will remain\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3562,"url":"https:\/\/amazingproperty.com.ng\/blog\/fewer-new-homes-in-pipeline-pushes-up-prices\/","url_meta":{"origin":8059,"position":2},"title":"Fewer New Homes in Pipeline Pushes Up Prices","author":"Amazing Property","date":"April 19, 2017","format":false,"excerpt":"Nationwide housing starts dropped in March, despite continued high buyer demand, which is adding pressure to overall home prices. Housing starts for single-family and multifamily homes dropped 6.8 percent in March to a seasonally adjusted annual rate of 1.22 million units, the Commerce Department reported Tuesday. Broken out, single-family production\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7636,"url":"https:\/\/amazingproperty.com.ng\/blog\/builders-warn-materials-are-in-short-supply\/","url_meta":{"origin":8059,"position":3},"title":"Builders Warn Materials Are in Short Supply","author":"Amazing Property","date":"December 28, 2017","format":false,"excerpt":"A shortage of building materials is becoming a pressing problem for many of the nation\u2019s homebuilders. Twenty-one percent of single-family builders reported a shortage of framing lumber, according to the 2017 National Association of Home Builders\/Wells Fargo Housing Market Index. 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