HOUSING MARKET BOUNCES BACK AFTER LATE YEAR SLOWDOWN

 - First Quarter Single-Family Permits Set Another Record -

CANTON, Mich. - (May 10, 2000) - According to a recent study by U.S. Housing Markets, homebuilders recorded 279,508 single-family permits in the first quarter of 2000, which broke last year's record for first quarter single-family permits by only 187 permits.  Record single-family permits have now occurred in six of the last seven quarters, with the fourth quarter of 1999 being the only exception.  According to John Burns, Principal and the study's author, "After the fourth quarter blip, builders picked back up where they left off.  We expect the single-family market to cool a little bit due to increasing mortgage rates, while the multi-family market is likely to improve as supply is significantly below demand."  The results of the study are published in U.S. Housing Markets, a publication of The Meyers Group.     

The change in single-family permits varied dramatically across the four regions of the country, and significant increases in certain areas compensated for small declines in many areas.  Less than half of the states (21) increased their permit totals over last year, which was a big improvement over last quarter, when only 11 of the 50 states had higher 4^th quarter 1999 single-family permits than 4^th quarter 1998 single-family permits.  A description of the single-family activity in each region is as follows:

Northeast - Permits decreased by 2% in the Northeast, and the decrease was fairly uniform across the major metropolitan areas. New York's single-family permits decreased by 4%, while Boston and Philadelphia decreased 3% and 2%, respectively. The major changes occurred in Pittsburgh, whose permits increased 14% over last year, and Nassau-Suffolk NY and Monmouth-Ocean NJ, whose permits declined 15% and 10%, respectively.

Midwest - Permits increased 6% over the first quarter of 1999. The greatest increases were in Columbus (up 36%), Detroit CMSA (up 12%), Minneapolis (up 10%) and Chicago CMSA (up 7%). The big declines were in Milwaukee (down 9%) and Cincinnati (down 6%).

South - Single-family permits were surprisingly flat in the South. Except for San Antonio, where single-family permits declined 8%, single-family permits were higher during the first quarter of this year than during the same period last year in most of the Texas metropolitan areas: Houston CMSA (up 16%), Dallas CMSA (up 2%) and Austin (up 11%). Single-family permit increases also occurred in West Palm Beach (up 19%)

Housing Market Bounces Back After Late Year Slowdown

and Washington CMSA (up 7%). The single-family housing market has slowed down in the Carolinas, however, with permits down 17% in Raleigh, 14% in Hampton Roads, and 11% in both Charlotte and Charleston. Permits were also down 15% in both Memphis and Nashville, and 11% in Oklahoma City and Richmond, VA. Changes in the other major areas were less significant.

West - Single-family permits were down 3% in the West, which was essentially attributable to major slowdowns in the Northwest (Portland down 15%) and Phoenix (down 16%), which were offset by significant gains in most California markets. The greatest percentage gains were in the densely populated urban areas, where permits grew 37% in Los Angeles-Long Beach PMSA and 26% in the Oakland/East Bay area.

Multifamily permits were 6% less than the first quarter of 1999, with 89,077 permits recorded in the first quarter of 2000. While the decrease may seem substantial, it is the second highest level of first quarter multi-family permits in the last 10 years. States that had significant increases in multi-family permits this quarter in comparison to the first quarter of last year, and had at least 1,000 multi-family permits, were: Tennessee (2,377, up 136%), Indiana (1,420, up 80%), Georgia (5,650, up 77%), New Jersey (2,609, up 70%), Pennsylvania (1,730, up 62%), Colorado (4,075, up 58%), and California (11,219, up 51%). Significant declines occurred in Texas (5,529, down 56%) and Nevada (1,106, down 58%).

U.S. Housing Markets is a division of The Meyers Group.  U.S. Housing Markets was founded in 1958 as a Detroit housing survey and was broadened in 1960 to report on major metropolitan areas in the Midwest.  The service was expanded to national coverage in 1966.  The publications are produced 12 times a year, appearing in newsletter format eight times and as a quarterly journal in March, June, September and December.

About The Meyers Group
Founded in 1985, The Meyers Group has quickly become the largest provider of new home real estate information in the United States. The company's mission is to deliver the most accurate, timely and technologically advanced information possible via a wide range of products.

The Meyers Group also has a Consulting Services Division that conducts more than 600 feasibility studies in 14 states for the top builders, developers, investors and lenders in the real estate industry. The key management team has over 120 years of combined real estate experience and holds advanced degrees in economics, business, marketing and psychology.

Clients of The Meyers Group range from homebuilders and land developers to real estate investors, financial institutions, and investment banking firms. The company is regarded as a premier source for new home statistics by major media publications and news organizations around the country. Information about The Meyers Group can be accessed through its Web site at www.meyersgroup.com.

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Contact:
Hunter Robbins
The Meyers Group
(310) 656-0084 ext. 225
hrobbins@meyersgroup.com