New Home Construction Nears Post-Recession High

With fewer homes available for sale, new home construction becomes very important to maintaining a balanced housing market. Where new homes are going up, prices are less likely to spike and home buyers have more options to choose from. That’s why the latest new home construction data from the U.S. Department of Housing and Urban Development and the Commerce Department is so encouraging. According to their latest release, the number of new homes that began construction in October was 13.7 percent higher than the month before. Not only that, housing starts are now near their post-recession high. Granger MacDonald, chairman of the National Association of Home Builders, says the improvement coincides with reports of increased confidence among home builders. “This uptick in housing production is aligned with our reports of strong builder confidence,” MacDonald said. “Our members are optimistic about the future of the housing market, even as uncertainties remain and they continue to face supply-side issues.” In short, economic gains have boosted interest in buying a home. And, though the real estate market continues to face challenges, builders are confident that buyer demand will remain high. More here.

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