Monday Report |
Wasatch Front Qtr 1.08 Housing Summary |
May 26th, 2008 |
SCORECARD
Wasatch Front Housing Market
Utah's real estate market continues to cool down
from record levels as First Quarter 2008 data
indicates. Buyer apprehension, coupled with tighter
lending restrictions have dampened new home sales
along the Wasatch Front. New home inventory
continues to maintain high levels, with a large
percentage of complete unoccupied homes (standing
inventory). Additionally, new home closings posted a
decline compared with previous quarters. However,
bright spots remain, as job growth continues and
interest rates are still considered to be favorable.
Wasatch Front Housing Summary - Qtr
1.08
1/01/2008 - 3/31/2008
County | Vacant
Lots | Homes Under
Construction | Complete
Unoccupied | New Home
Closings |
Salt
Lake | 5,951 | 1,111 | 977
| 715 |
Utah | 12,197 | 1,917 | 982 | 739 |
Davis | 3,446 | 373 | 501 | 164 |
Wasatch | 2,282 | 220
TD> | 34 | 53 |
Weber | 2,885 | 354 | 348 | 307 |
Tooele | 1,023 | 150 | 139 | 38 |
Washington | 5,333 | 44
6 | 348 | 228 |
Source: NewReach - Builders Decision
New Home Closings
The number of new home closings within the
Wasatch Front continues to see declines. Tighter
lending standards and steep price appreciation forced
many first-time buyers out of the market. Buyer
apprehension continues to feed the problem.
However, price reductions have resulted, thus
increasing buyer traffic and new home reservations.
With this indicator, new home closings show signs of
future improvment. Although we cannot expect the
same sales volume experienced in 2005-06,
improvement can be expected.
Wasatch Front Housing Summary - Qtr
1.08
Top 15 Projects - New Home
Closings
Rank | Project | Qtr
1 .08 | City | Product
Type |
1 | Daybreak | 81 |
South Jordan | Att/Det |
2 | The
Ranches | 69 | Eagle
Mountain | Att/Det |
3 | East Town
Village | 54 | Midvale |
Attached |
4 | Heights on Quarry
Bend | 41 | Sandy |
Attached |
5 | Zermatt | 36 |
Midway | Attached |
6 | Silver
Lake | 33 | Eagle
Mountain | Detached |
7 | Bellevue | 29 |
Draper | Detached |
8 | Village on Dimple
Dell | 28 | Sandy |
Attached |
9 | Harvest
Hills | 25 | Saratoga
Springs | Att/Det |
10 | Belle
Monet | 24 | Pleasant
Grove | Attached |
11 | Whistler
Ridge | 23 | Orem |
Attached |
12 | Suncrest | 22 |
Draper | Att/Det |
13 | Cambria | 21 |
Pleasant Grove | Attached |
14 | Rose Creek
Crossing | 20 | Riverton |
Attached |
15 | Rosecrest |
19 | Herriman | Att/Det
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Source: NewReach - Builders Decision
THIS WEEKS LEADS:
- Plow & Hearth
- Plow & Hearth operates nine locations throughout
MD, NC and VA.
- The stores, offering unique
products for the home and garden, occupy spaces of
6,000 sq.ft. to 8,000 sq.ft. in freestanding
locations.
- Growth opportunities are sought
nationwide during the coming 18 months, with
representation by Winick Realty Group.
- The
company prefers to locate in high traffic areas in
downtown business districts.
- Major competitors
include Home Depot.
- For more information, contact
- Jeff
Winick,
- Winick Realty Group,
- 655 Third Avenue,
8th Floor,
- New York, NY 10017
- Western Tool Supply
- Western Tool Supply, Inc. trades as Western Tool
Supply at 75 locations throughout CA, CT, ID, MA, ME,
MT, NH, NV, NY, OR, UT, VT, WA and
throughout Alberta, British Columbia and
Saskatchewan, Canada.
- The stores, offering tools
for construction, machinery and woodworking fields,
occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in
freestanding locations.
- Growth opportunities are
sought throughout MT, UTand WA during the
coming 18 months.
- The company prefers to
acquire sites and to locate near industrial parks.
- For more information, contact
- Kevin
Kiker,
- Western Tool Supply, Inc.,
- PO Box
13430,
- Salem, OR 97309;
- Web site:
www.westerntool.com.
- Fast Frame
- Fast Frame USA, Inc. trades as Fast Frame at 300
locations nationwide and internationally.
- The
stores, offering custom framing, art work and
accessories, occupy spaces of 1,500 sq.ft. in strip
centers.
- Growth opportunities are sought
nationwide during the coming 18 months.
- Typical
leases run five years with options.
- The company
prefers to locate in upscale shopping centers with
major anchors.
- For more information, contact
- Brenda
Hales, Fast Frame USA, Inc., 1200 Lawrence Drive,
Suite 300, Newbury Park, CA 91320; Web site:
www.fastframe.com.
- Red Mango
- Red Mango operates 18 locations throughout CA,
NV, NY, OR, UTand WA.
- The frozen yogurt
shops occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in
endcaps with a patio, lifestyle centers, colleges,
universities and theme parks.
- Growth opportunities
are sought throughout CA and NV during the coming
18 months, with representation by Ira Spilky &
Associates.
- The company also prefers to locate in
entertainment venues near multi-screen theater
complexes and strip centers.
- The company will
also consider conversions of underperforming
dessert shops.
- For more information, contact
- Ira
Spilky,
- Ira Spilky & Associates,
- 2566 Overland
Avenue, Suite 660,
- Los Angeles, CA
90064
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Greetings!
Wasatch Front Housing Summary
What is selling?
What isn't?
Who is down?
Who is up?
Bob Springmeyer
Bonneville Research
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Bonneville Research Website |
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www.BonnevilleResearch.com
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Bonneville Research |
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ECONOMIC NOTES: |
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- Global Business Confidence
- Global business confidence remains very weak
and fragile, but it has taken on an ever so slightly
brighter hue so far in May. Expectations regarding the
six-month outlook and assessments of current
conditions have improved. The inventory correction
has abated; businesses aren't adding to inventories,
but at least they aren't aggressively cutting them.
Pricing pressures also remain very well contained
given soaring energy and other commodity prices.
Hiring intentions have not improved, however. The
survey results in the U.S. remain uniformly negative,
suggesting the economy is contracting; they remain
measurably better in Asia and, to a lesser degree, in
South America.
- ABC News/Washington Post Consumer
Comfort Index
- Consumers have very little to be optimistic about
as gasoline prices climb toward $4, layoffs accelerate,
and house prices decline. The ABC
News/Washington Post consumer comfort index
came in at -49 in the week ending May 18, down from -
47 the previous week and within a single point of its
record low. The details of the report were generally
weak, with two of the three underlying components
declining over the month. Consumer confidence is at
a level consistent with a more severe economic
downturn.
- Conference Board Leading Indicators
- The Conference Board index of leading indicators
rose 0.1% in April, following a similar increase in
March. This is the first time the index has risen for two
straight months in more than a year and a half. The
leading index is consistent with an economy that has
stalled but not collapsed.
- Risk of Recession
- The U.S. economy is contracting but incoming
data suggest that the current downturn will be short
and shallow, similar to the eight-month downturn of
2001. The data suggest that the pace of deterioration
in the economy is not accelerating and financial
markets are gradually improving. The Moody's
Economy.com probability of recession eased to 51%
in April, compared to March's 56%. Further, tax rebate
checks are showing up in consumers' checking
accounts, which will provide a much-needed boost to
spending and the overall economy in the second half
of this year.
- PPI
- Producer prices for finished goods rose by 0.2% in
April, following a 1.1% increase in March. Inflation
among food and energy products paused during the
month. Excluding food and energy, prices for core
finished producer goods rose by 0.4%. Price
increases remained more rapid at earlier stages of
processing. Core prices for intermediate products
rose by 1.2%, while core prices for crude materials
rose by a large 7.9%.
- OFHEO Purchase-Only House Price
Index
- The OFHEO purchase-only house price index fell
by 0.4% on a monthly basis between February and
March, reversing the price gain in the previous month
and leaving house prices down by 3.4% compared to
March 2007. The fall in prices is parallel with the fall in
the quarterly home price index and indicates that the
trend in decreasing house prices accelerated from
February to March, and that the bottom of the housing
market has not yet been reached.
- OFHEO Home Price Index
- House prices have fallen in many regions,
according to OFHEO's repeat-purchase house price
index for the first quarter of 2008. Prices were down in
43 states and all Census divisions. Not surprisingly,
California, Nevada, Florida and Arizona had the
largest declines. The regions where house prices
continued to rise tend to be smaller, more rural states.
For the nation, prices were down 3.1% y/y, the largest
decline in the index's history.
- New Residential Construction (C20)
- Housing starts increased 8.2% to 1.032 million
units in April, above Moody's Economy.com's
expectations. Housing permits increased 4.9% during
the month. Despite the increases from a month ago,
starts and permits remain well below their year-ago
levels. Expect the market to remain soft throughout at
least the first half of this year.
- MBA Mortgage Applications Survey
- The MBA market composites ended down for the
week ending May 16 as the mortgage market
continues to look for a bottom. The market index fell by
7.8% compared with the week before as contract rates
began to edge upward, as did the refinance index,
which fell by 8.7% compared with last week. Finally,
the purchase index fell by 6.9% compared with last
week to reach its lowest point since early 2003.
- Jobless Claims
- Initial claims for unemployment insurance
decreased by 9,000 to 365,000, erasing the prior
week's increase. Initial claims have leveled off in
recent weeks, no longer having the clear upward
momentum shown since the fourth quarter of 2007.
They do, however, remain at an elevated pace.
- Mass Layoffs
- The number of layoff involving at least 50 workers
from a single establishment in April was 1,308,
compared with 1,571 in March. They involved 133,914
workers, compared with 157,156 in March. All
numbers are seasonally adjusted. Despite the drop in
layoffs, the rate remains well above year-ago
levels.
- Chain Store Sales
- Chain store sales began fiscal May on a very weak
note. Sales fell 0.4% in the week ending May 17,
according to the ICSC. This was the third consecutive
weekly decline and fourth in the last five weeks.
Despite the decline, however, year-over-year growth
rose to 1.5%. Sales suffered from unseasonably cold
and wet weather and soaring gasoline prices.
- Oil and Gas Inventories
- Crude oil inventories fell by 5.4 million barrels for
the week ending May 16, according to the Energy
Information Administration, compared with
expectations of a 0.6 million barrel build. Gasoline
inventories fell by 0.8 million barrels, below
expectations of a 0.7 million barrel build. Distillate
supplies rose by 0.7 million barrels, less than
expected. Refinery operating capacity rose strongly to
87.9% from 86.6%. This report is bullish and should
send prices higher.
- Weekly Natural Gas Storage Report
- Underground storage of natural gas rose by 85
billion cubic feet during the week ending May 16, in
line with consensus expectations. Working gas in
underground storage was 1,614 bcf as of May 16, 302
bcf lower than a year ago and 3 bcf below the five-year
average for this time of year.
Source: Economy.com 2008
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BONNEVILLE RESEARCH - Working with clients to deliver results that endure! |
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Successful client work requires a
superior team of
outstanding people working fluidly together.
Bonneville Research is the one firm with
the
experience and expertise to help
businesses,
governments and nonprofit organizations
solve their
toughest problems.
We work to help clients achieve enduring
results
and improve the communities in which we
live.
BONNEVILLE RESEARCH
Bonneville Research is a Utah-based
consulting
firm providing economic, financial, market
and policy
research to public and private sector clients
throughout the intermountain west.
Helping Clients Succeed
Our services include:
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Analysis and Budgets
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Effectiveness
Each of our studies is tailored to address
the
unique needs of our clients and their
communities.
If we can help, please call or email us at
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- 801-364-5300
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- Jon
- 801-746-5706
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JonSpring@BonnevilleResearch.com
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Note from Bob Springmeyer: |
As some of you may know I am the Democratic
Candidate for Utah Governor. At the recent State
Democratic Convention, I was nominated to be the
party's standard bearer with over 88 percent of the
vote.
I chose community activist and retired SBA official
Josie Valdez to run as my lieutenant governor.
It is my hope that I can continue to send out the
Monday Report weekly without interruption.
The Monday Report has always reflected my
business and economic development values.
I don't intend that the Monday Report will become
a campaign tool, but if you are interested in my
campaign and want to be supportive, please click on
the link below.
Thanks,
Bob Springmeyer
Check it out - BobforGov.org
Election Date: November 4th, 2008
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