Newsday
Homebuilding Surges Nationwide
December 19 , 2001
By Jamie Herzlich Unseasonably
warm weather, a weak stock market and low interest rates contributed
to an unexpected surge in new home construction nationwide last
month, experts said yesterday.
Housing
starts rose to a seasonally adjusted annual rate of 1.645 million
in November, up 8.2 percent above the revised October estimate of
1.521 million and 6 percent above the November 2000 rate, the U.S.
Department of Commerce reported yesterday. The November pace was
the fastest since July. Building permits for November also rose
5.3 percent to 1.564 million units above the revised October rate
of 1.485 million.
In
a survey released Monday by the National Association of Home Builders,
a Washington-based trade group, builders said low interest rates
and solid appreciation in housing values are motivating new home
buyers. The average interest rate on a 30-year fixed-rate mortgage
was 6.7 percent in November, compared with 7.7 percent for the same
month a year ago. While housing start figures were unavailable for
Long Island and Queens, local builders and experts said they were
also experiencing a healthy market.
"There
was a slight slowdown due to Sept. 11, but that's past," said
Bob Wieboldt, executive vice president of the Long Island Builders
Institute in Islandia. "There's built-up demand." Wieboldt
added this was the best November "in recent memory," noting
that the mild weather allowed people extra time to finish construction
as well as start new houses.
Michael
Dubb, a partner with The Beechwood Organization in Jericho, said
activity was hot in both Long Island and Queens. "It's been
strong, and it will continue to be strong," Dubb said. For
example, he said, a project that has yet to be constructed in Queens
Village for 100 two- family homes sold out within a month. Prices
range from $350,000 to $450,000. Another partially finished project
in Manorville for 307 homes and townhouses has already sold 265
units, with prices from the high $200,000s to mid-$300,000 range.
As
of October, building permits this year were issued for 4,065 units
in Suffolk County, up from 3,794 last year at that time; in Nassau,
building permits were issued for 758 units year to date, down from
1,315; and in Queens, building permits were issued for 2,685 units,
up from 2,074 units. November figures will be released later this
month.
"The
market is still healthy," said Lennard Axinn, president of
the Long Island Builders Institute and a partner with Island Estates
in Melville. Island Estates is among the builders on a project in
Miller Place in which 78 contracts have been signed for the 199
single-family homes proposed for the site, he said.
"That's
tremendous," Axinn said. "We never have that many in advance."
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