Housing production returns to normal trends
Posted on Monday, January 20, 2014 at 8:42:07 AM
For those interested in residential financing, new construction may be the ideal way to break into the housing market. These properties are attractive for a number of reasons, and the end of 2013 and the outlook for this year have been positive overall.
According to the U.S Census Bureau, housing production dropped to a seasonally adjusted annual rate of 999,000 units in December, 9.8 percent below November's figure. There were also 923,400 starts in all of 2013, 18.3 percent higher than 2012. However, any decreases are more in line with expected trends, and the month still had the third-highest level of production experienced in 2013, explained National Association of Home Builder's chairman Rick Judson.
"Last year was a good year for home building, with overall production up 18 percent from 2012," NAHB chief economist David Crowe said in a statement. "As pent-up demand is unlocked and the labor market improves, we anticipate that 2014 should be an even better year for home construction. That's good news for economic growth, as each new home that is built creates three full-time jobs and contributes to the tax base of local communities."
In addition, the U.S. Census Bureau indicated that an estimated 762,200 housing units were completed in 2013, 17.4 percent above the number reported in 2012.