The number of cities with green building programs has increased 418 percent since 2003. In just four years–wow. Think about it: 418 percent.

That’s an increase from 22 to 92, according to the American Institute of Architects, who recently paid for a study of areas with more than 50,000 residents to find out how effective green building policies are.

The report, Local Leaders in Sustainability, analyzed 661 communities, according to the online Dexigner publication.

We knew cities were signing on to green building — not only have numerous cities tried to establish green building codes, the summer U.S. Conference of Mayors meeting led to a resolution urging Congress to offer funding of K-12 green school demonstration projects and to support new funding to research the 
economic and health benefits of green schools.

But still … a more than 400 percent increase? Why–is green just getting popular? Or, as some are suggesting, is green building just getting easier and less expensive?

"Technological advances now allow for the design of buildings that are
efficient, modern, possess great aesthetics and are financially viable," says Paul Mendelsohn, AIA vice president, Government and Community Relations. "High premiums for green buildings are no longer the case as costs are coming more in line with traditional building practices."

What are your thoughts on cities adopting green building policies? Does it help to have green building standards at the local level, or should the industry instead rely on national codes such as LEED’s system? Post your thoughts below.

The National Association of Realtors has released its data on October home sales, and the results are — despite the group’s trademark positive outlook — really somewhat disappointing.

Pre-owned home sales hit their lowest point ever; so did home prices. October, in fact, marked the eighth consecutive month home sales dropped, according to CNNMoney.com.

Some more "highlights:"

• Single-Family Homes Suffered. The annual pace of single-family home sales in October was 4.37 million, the same as September. However, September showed the lowest annual pace since early 1998 — so holding steady was nothing to celebrate.

• Condos Aren’t in the Clear. The condo market seemed especially troubled. Sales dropped 9.1 percent from September and the supply increased to 13.1 months worth of condos. In September, the condo supply was 12.2 months. (Just to compare, note that the national housing supply — which is also way up — is at just less than 11 months.)

• And About That Housing Supply … In September, the housing supply was at 10.4 months. Now it’s at almost 11 — the largest supply in more than 22 years (!).

Yet not all the news was bad: Roughly 93
of 150 metropolitan markets are showing flat or slightly higher home
prices — and not declines.

However, plenty of markets are seeing declines, so nationally, home prices are down. Which you might think would spur home sales — but the price drop wasn’t much help due to the ongoing issues in the jumbo loan market.

NAR blamed problems with jumbo loans, which are those over $417,000, for making it hard to sell securities backed by the loans. The situation hurt some high-end buyers’ chances of securing loans. (Not that everyone buying a home for less than $400,000 is having an easy time securing a loan these days …)

We’re all waiting for that sign that the housing slump is over: But it doesn’t look like today was it.

We know things are going to be dicey for awhile. As Reuters (among others) reported today, Fed Vice Chairman Donald Kohn’s comments this week to the Council on Foreign Relations — stressing concern over the state of U.S. growth — got economists all atwitter with expectations the Fed would again cut rates at its December meeting.

The Fed has been criticized this year for not reacting quickly enough to the housing slump and credit crisis, focusing instead on inflation — and seeing the central bank now start to scratch its head and ponder the fallout makes one wonder if we’re in for a longer haul than any of us thought.

And yet, it’s important to remember that construction — residential especially — and prices are cyclical.

There are good years and bad ones. And yes, this year is especially bad. (As CNNMoney.com said today, before the start of the current housing slump, it had been 11 years since home prices fell year-on-year.)

But every cycle has a down point from which it rises — meaning logically, statistically and without a doubt, things are going to improve. And some signs exist to inspire hope — mortgage rates were about the same in October compared to the month before; and while still down for the year, single-family home sales held steady from September to October.

The question isn’t "will it?" — it’s "When?" Unfortunately, the more home prices and sales fall, the harder it becomes to formulate an answer. Hopefully November’s home sales data will provide a clearer picture …

We all know the U.S. housing market is rocky — but does the rest of the world feel that way?

Maybe not. As the subprime crisis threatens international banks, some other countries have expressed interest in investing in U.S. commercial and other markets. Building comes in waves — and some may be ready to ride it out.

Curious? Some suggested reading:

Real Estate Has More Appeal Outside the U.S.: Jane Bryant Quinn

 British Real Estate Investor Sees Potential in U.S. After Subprime Crisis

As the October housing numbers trickle in, residential building and construction industry reports from areas around the country can provide a snapshot of what the various regions are experiencing as the housing slump drags on. And on. And … say it with me … on.

Some recent state results include:

• Utah — New home demand along Utah’s Wasatch Front hit its lowest level in 17 years last month, according to a new Construction Monitor report. Builders took out just 530 single-family home permits, down from 1,186 in October
  2006, the Salt Lake Tribune reports.

• Pennsylvania – Pittsburgh’s October residential building permits revealed an increase over the same period in 2006, but the total permit number for the first 10 months of the year is still lower than last year, according to the Pittsburgh Business Times. Housing permits in the Pittsburgh Metropolitan area were 12.8 percent higher than last year — however, the total permits issued this year thus far are down 6.4 percent from 2006.

• South Carolina – The October unemployment rate rose slightly from
  September to 5.8 percent but construction payrolls expanded by 500 jobs from September to October, according to the Post and Courier. The construction payroll is still, however, off by 300 positions compared to October of last year. A senior Wachovia Corp. economist said building industry employment will probably drop in the coming months.

Overall, a mixed bag: But then again, we’re just talking about three states. Given yesterday’s Commerce Department report, which indicated a dip in building permits, and the surprise Freddie Mac announcement that the government-sponsored mortgage agency had lost $2 billion in the third quarter, people certainly aren’t feeling 100 percent better today about the housing industry.

They may, in fact, be feeling a lot of things, most notably, confusion. There hasn’t been a clear indication we’re out of the woods yet, but the sprinkling of good news items of late — such as the Wall Street Journal reporting that
McGraw-Hill Construction expects residential construction
spending to see less declines than it did this year and total
construction spending to drop just 2 percent in 2008 — have given hope to some.

And yet, there’s one group some analysts are saying might be a little less hopeful: The Fed. The Fed’s comments from its last Oct. 31 meeting (which can be downloaded in PDF form here) were published yesterday, revealing concerns about increased unemployment and reduced growth in 2008 that were interpreted to mean we may be seeing another rate cut in December. It was influential enough, anyway, to drive Wall Street was up yesterday after the notes’ release.

Should we be pleased the Fed is acknowledging how serious the housing situation is after expressing more concern for most of the year about inflation? Or should we be nervous that the Fed appears to feel that we’re in for a long, rough ride? Post your thoughts below.

The National Association of Homebuilders’ housing index was released this afternoon, and it revealed what many expected: As home prices decline and mortgage restrictions increase, homebuilders are not feeling good about the industry.

The Financial Times reported this morning that industry experts expected that the NAHB housing index — compiled from a monthly survey in which builders rate aspects of the housing situation as good, fair or
poor — would set a new low point of 17 (compared with 19, the revised number from
October).

However, the reading stayed at 19. Some thoughts:

• Yay And Nay: A consistent reading is slightly positive sign, but given that 19 is the index’s lowest level in more than 20 years, not a reason to break out the champagne.

• As the Magic 8 Ball Might Say, Outlook Not Good: Survey respondents also judge the amount of prospective buyers and offer a
  six-month outlook. Builder sales expectations for the next six months dropped a point to 26. However, buyer traffic rose from 15 to 17.

• Regional Results Were Mixed: In the Northeast, the housing market index gained one point, rising to 27, and in the
  West increased three points to 18. However, the Midwestern HMI dropped one point to 13 and in the South declined two points
  to 19.

• Steady, but Slumping: Single-family home sales remained at 18
  for the second month — again, not great news, as any reading under 50 indicates builders thinks conditions are bad.

The National Association of Realtors thinks residential starts will end up being 1.351 million this year and 1.14 million next year, down from 2006′s 1.801 million. Construction’s weakest year — 1991 — had more than 1.139 million, according to Bloomberg. Also today, the S&P homebuilder index
declined 6 percent, according to the Times.

But wait! There is  more indicative news on its way. The Commerce Department’s report tomorrow will reveal the annual residential construction rate for the year thus far. Bloomberg says the numbers may show that the decline has hit its worst point.

Now, *that* would be some unequivocally good news (finally) — or will we here things are still looking bad for the future? Stay tuned tomorrow …