NKY remodeling starts soar while single homes suffer | Business
ERLANGER, KY (FOX19) - The Home Builders Association of Northern Kentucky recently released their permit numbers for the first quarter of 2012, revealing what appears to be both good and bad news.
“Remodeling continues to skyrocket into 2012,” said Brian Miller, executive vice president for the Home Builders Association of Northern Kentucky. “We are up 47 percent in remodeling volume for the first quarter of 2012 over that same period in 2011 where we were already beginning to see the remodeling industry gain steam. That is the hottest first quarter volume we have seen in the ten years we have been tracking this data for the last ten years.
"What is also welcomed news is that the average price for these remodeling jobs has increased twenty two percent over that same period in 2011. As far as single family permits are concerned we are still bouncing around the bottom. (Click the headline to see a spreadsheet of the numbers.) What was shaping up to be a very good January and February have been overshadowed by a rather meek March 2012. Through February our single family permit volume was up twenty six percent over that same period in 2011. March erased all of that by decreasing thirty six percent over last year’s March. We will have to see if that is an anomaly or that will be reversed in the coming months."
Though interest rates remain low, Miller says credit is still hard to come by for many. "Overall, we believe that the bottom is in for the housing market in Northern Kentucky as anecdotes pour in from our builders that the buyers are out in force and that many builders are increasing their forecasts for 2012. We simply need to see more available credit for those who are able to purchase and maintain a home and for there to be the willingness by financial institutions to lend to builders as the inventory of new homes available in the market is merely a shadow of what it once was. Buyers are out there but they need something to move in to when their house sells and without any inventory that often is not a new home and it is new homes that create the most jobs.”
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