Single Family Home Building On The Rise

Breaking news from the “Finally” category: Builders are actually constructing new single family homes. May 2012 saw the most homes started and the most permit requests in the past three and a half years. Although some components of the U.S. economy are stagnant or weakening, the housing market appears to be recovering.

May is actually the the third month in a row showing increased housing starts. Apartment construction was down 21.3 percent in May, dragging overall housing starts down by 4.8 percent. Since apartment permits a) involve many units and b) are sporadic by nature, you should not read too much into a seasonally adjusted permit drop. Single family home starts increased in May by 3.2 percent.

After recalculating April 2012 numbers, the government noted that starts and permits were stronger than originally believed. The revised numbers indicate April housing starts at 744,000, the strongest pace since October 2008.

Home builders are even more optimistic than the government. Their collective estimates indicate a seasonally adjusted rate of 780,000 permits, the most since September 2008. While these estimates remain modest when compared to a strong, healthy economy, which might involve twice as many projected starts, all signs point to a housing recovery (finally) that is measurable.

Much of the builder confidence stems from the number of people expressing interest in buying new homes. As mortgage rates remain low and home prices are still very reasonable, the demand (and pent-up demand) for new houses is escalating.

Even many typically pessimistic economists expect housing construction to contribute to national economic growth for the first time since 2005. While no one is predicting a fast and strong increase in housing construction, industry experts do predict a fairly consistent gradual upward trend.

While the mortgage market remains tight, buyers with good credit scores and sufficient down payment funds are increasing. Newly constructed homes only represent around 20 percent of the residential market, but they have an important effect on the economy. Each new home means an average of three new jobs and almost $90,000 a year in additional tax revenue.

Buyers looking for newly built homes in Washington DC, Virginia and/or Maryland should have a variety of exciting choices in the coming months. With low mortgage rates and reasonable home prices, the only question is “Why wait?” Visit I-Agent today and receive the largest realtor rebate in the industry.

6 years ago by in Home News | You can follow any responses to this entry through the RSS feed. You can leave a response, or trackback from your own site.
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