The number of home permits issued in June in southeast Michigan exceeded the forecasted number, according to the Home Builders Association of Southeastern Michigan in Farmington Hills.
A total of 315 single-family home permits were issued in Macomb, Oakland, St. Clair, and Wayne counties in June, exceeding a forecast of 243.
In addition, 27 more permits were added to May’s previously reported total of 164 to bring the post-COVID-19 shutdown recovery to 506 new permits in May and June. This is 30 percent higher than the association’s econometric model had forecasted at 397.
“It’s exciting to share good news after all we’ve been through,” says Michael Stoskopf, CEO of the association. “It is encouraging that we are truly seeing a v-shaped recovery, at least as it pertains to new home construction permits. The fact that it is significantly exceeding our forecast is a further reason for optimism.
“While it is difficult to compare employment numbers on a year-over-year basis due to the magnitude of the economic shutdown in March and April, the gains in May were a good first step in reversing the impact of so many losing jobs in the preceding months. The fact that people are returning to work helps create the combination of economic stability as well as restored confidence, especially for those who were ready to buy new homes in March or April but delayed that decision until they felt more secure in doing so.”
The association’s forecast indicates a return to trend by August with the expected seasonal slowdown in late fall. However, the total number of permits issued for the year is expected to be lower than usual due to COVID-19.
“We all will need to do what we can to avoid a second wave of impacts to ensure 2021 can return to normal,” says Stoskopf.
The average new single-family permit value dropped 4.6 percent from the previous month and 1.5 percent from the previous year to $297,406.
The average single-family home sale price increased 6.8 percent month-over-month to $241,752, a value that is largely flat year-over-year with a 1.4 percent increase.
The number of people employed – 1,359,981 – stayed largely flat from the previous month with an increase of 1.2 percent. However, this is a drop of 29.1 percent from the previous year. The workforce, at 1,799,834, stayed flat month-over-month with a 1.5 percent increase and is 9.8 percent lower year-over-year.
North American vehicle production jumped 236.2 percent to 1,170,404 units from the previous month. However, this is a dip of 16.8 percent from the previous year.
Crude oil price per barrel increased 224.7 percent to $32.50 from the previous month. This is a 48.4 percent decrease from the previous year.