updated: 2/13/2013 8:24:08 AM
The Builders Association of Greater Indianapolis says 303 single-family building permits were issued in January, compared to 196 a year earlier. Despite the jump, the organization expects a shortage of labor and increased material costs will put pressure on home prices in 2013.
February 12, 2013
The Greater Indianapolis Nine-County, Single-Family Building Permits for January 2013 increased 55 percent compared to January 2012. There were 303 permits issued in January 2012 compared to 196 permits in January 2012.
“The January increase is reflective of what we have been seeing in the market the past month,” said Curtis Rector, president of Arbor Homes. “We continue to see more buyers, more traffic and more interest in building homes. Also, the recent price increases in homes is reflective of a stronger market.”
At 55 percent, the January increase in permits is better than any month in 2012.
“Sales were healthy in January and we expect 2013 to be a strong year,” said Alan Goldsticker, president of the Indianapolis Division of Ryland Homes. “We do, however, expect challenges in 2013 to include a shortage of labor, and the increase in material costs putting pressure on home prices.”
The last time the market saw such a large percentage increase from the previous year was in January 2010, when permits were up 120 percent over January 2009.
“There is a lot of pent-up demand in Greater Indianapolis, especially in the key submarkets that we serve: Carmel, Fishers, Westfield, Noblesville, Zionsville, Brownsburg and Avon,” said Tony Barbee, Pulte Group Division President – Indianapolis and Cleveland.
“In fact, we are seeing increased traffic in all our communities,” Barbee said. “Buyers are much more optimistic about the economy and job stability. Couple that with low inventory levels and low mortgage rates, buyers who have been waiting on the sidelines are entering the market with new vigor.”
In the Greater Indianapolis Nine-County region, the 303 permits issued in January 2012 created a total economic impact of $54,262,392 in local income, $12,318,462 in local taxes, and 919 local jobs.
“The continuing improvement in the housing market creates additional economic benefits to the entire community,” said Steve Lains, CEO of the Builders Association of Greater Indianapolis. “Studies point out the importance of the housing industry to the local and national economy through local taxes, income and jobs created.”