New Home Construction Post Big Gain

Housing data was released today, showing an improving picture into the New Home Construction Market. Permits jumped up from Feb to March by 7.2%. Seasonally adjusted to 549,000 units. This indication of future construction helped improve confidence among builder, from February lows. The permit numbers are slowly increasing, but nowhere near the peak rate of 1.2 million per year.

Foreclosures have hit pricing among new homes, in some areas, close to 50% of their peak sales price from 2006. The credit markets are forcing lenders to be much more cautious about their lending standards, leaving some would be buyers on the sidelines due to a lack of lender approval.Those who do qualify, have the ability to shop around for the right price.

New home construction can help spark job growth, and effect a multitude of industries in a positive way. Today’s recent increase in permits shows the markets, buyers and builders that a possible recovery is in the works.

The all important “selling season” is upon the industry, these next few months should hold the signs of a recovery to come, or a continued downward trend in construction. Stay tuned