A total of 338 single-family home permits were issued in Macomb, Oakland, St. Clair, and Wayne counties in January, according to the Home Builders Association of Southeastern Michigan. The total is up 63 percent compared to last January’s 207 permits and is the quickest start to the year since 2006, when 491 permits were issued.
January’s result also marked the 11th consecutive month in which new home permits exceeded the 300 permits per month threshold, making it the second longest streak since 2006. 2017 had the longest streak of 12 months.
“It’s no secret that new home permit activity was underwhelming for most of 2019,” says Michael Stoskopf, CEO of the association. “However, the pace shown in December 2019 and now in January 2020 may indeed be a bellwether for a significant rebound in 2020. In talking with builders across the region, two factors are contributing to this increase. First, the return of potential buyers to the new home market, and second, the renewed availability of developed lots ready for construction.”
The average new single-family permit value was $287,589, an increase of 12.6 percent from the previous month and a decrease of 0.9 percent from the previous year.
The average single-family home sale price was $218,246. This is a decrease of 0.5 percent month-over-month and an increase of 10.7 percent year-over-year.
Multi-family housing permits were up 5 percent year-over-year with 286 issued compared to 271. This pulled the 12-month total to 2,390, up 96 percent over January 2019’s 1,219.
While the number of people employed stayed relatively flat from the previous year and the previous month, the average number of people employed over the past 12 months now stands at just under 1.929 million, its highest level within the region since October 2003. In January, the number of people employed in the area was 1,939,960, an increase of 0.3 percent month-over-month and an increase of 1.6 percent year-over-year.
Similarly, the workforce grew 0.6 percent from the previous month and 1 percent from the previous year to 2,014,579.
North American vehicle production increased 26.5 percent month-over-month and 1.4 percent year-over-year to 1,419,325.
Crude oil price per barrel increased 7.2 percent from December 2019 and 29.7 percent from January 2019 to $61.22.
