Wednesday, October 31, 2012

Staying Upbeat about New Home Starts


Interesting facts about the current new home market:
  •  Construction of single-family homes is now running at an annual rate of 535,000, the busiest pace since April 2010 when first time home buyer’s tax rebates were in place. Overall housing starts, including apartments, have risen to 750,000, up from 571,000 in August 2011.
  • Building permits, a reliable indicator of future construction, stand at 803,000, near a four year high.

  • New home sales have climbed to an annual pace of 373,000, a powerful 28% increase from the same month last year. Median new home prices jumped 11.2% from July to hit $257,000. That’s the sharpest one-month increase on record and the highest level in five years.
  • There is currently just a 4.5 month supply of new homes on the market, the thinnest inventory on record. Every year there are 600,000 new families formed. As the inventory of used homes dwindles, the new home market will grow again.

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