The number of home building permits issued in Macomb, Oakland, St. Clair, and Wayne counties was above 350 for the fourth consecutive month in September, says the Home Builders Association of Southeastern Michigan. Additionally, the average new single-family permit value increased 20.7 percent from the previous year.
Over the course of the month, 395 permits were issued. The number of permits in July and August were also revised upward to a total of 429 and 410, respectively, marking two consecutive months above the 400-permit threshold.
“According to data reported by REALCOMP, the total existing single-family home sales for July through September reached its highest level (17,808) for a consecutive three-month period since prior to the Great Recession,” says Michael Stoskopf, CEO of the association. “With steadily decreasing existing home inventories, the lowest since April 2018, buyers are moving to new home construction.”
The average new single-family permit value increased 20.7 percent from the previous year to $295,039, a 4.9 percent jump month-over-month. The average single-family home sale price was $261,499, a 12.7 percent increase from the previous year and a 0.9 percent decrease from the previous month.
Employment stayed largely flat from the previous month with a 2.5 percent increase to 1.7 million; a 9.6 percent decrease from the previous year. The workforce showed a similar pattern — it was flat month-over-month with a 2.6 percent increase to 1.9 million, a 4 percent decrease year-over-year.
North American vehicle production stayed flat month-over-month and year-over-year with a decrease of 1.8 percent and an increase of 0.6 percent, respectively, to 1.3 million units.
The price of crude oil per barrel stayed flat from the previous month with a 1.5 percent increase to $41.96, a 24.4 percent decrease from the previous year.
In related news, most homeowners are selling their homes above asking price, and close to half of consumers who moved to a new home moved to the suburbs since March 1. The data comes from Pontiac-based United Wholesale Mortgage, which announced the results from its 2020 COVID-19 homeowner survey.
The survey was conducted by a third party and surveyed 1,000 homeowners in September.
Since March 1, 70 percent of the people surveyed who purchased a new primary home also sold their old home. Of homeowners surveyed who are looking to create a home office space, 46 percent repurposed their dining room. Nearly 60 percent of those surveyed are starting or continuing home renovations in the coming year.
Nearly one in four consumers who moved to a new home listed a pool as a must-have feature.
“This research shows us that cash-out refinances are more important than ever to borrowers who are staying in their homes, and we plan to continue to monitor trends happening in the home buying, refinancing, and ownership phases for borrowers as we continue to navigate these unprecedented times,” says Sarah DeCiantis, chief marketing officer of United Wholesale Mortgage.
The study was conducted online by Utah-based Qualtrics on behalf of United Wholesale Mortgage.