Positive trends emerge for residential construction, builder confidence
Posted on Tuesday, June 17, 2014 at 9:02:54 AM
For buyers interested in affordable residential financing, an increase in quality homes for sale will be a significant boost to the U.S. housing market. The uptick in inventory could help drive cost-effective listings and ensure that homeownership is a reality for many Americans.
According to the U.S. Census Bureau and the Department of Housing and Urban Development, housing completions climbed to a seasonally adjusted annual rate of 897,000 in May, which represents a 6.8 percent increase over April's estimate and a 24.8 percent uptick on a yearly basis. However, housing starts and building permits both experienced slight month-over-month declines this past May.
On the other hand, the National Association of Home Builders reported that builder confidence was on the way up in June, with almost half of all builders surveyed viewing conditions as good rather than poor.
"After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry," said NAHB chairman Kevin Kelly. "However, builders are facing strong headwinds, including the limited availability of labor."
While this is a good sign overall, NAHB chief economist David Crowe added that many consumers are still waiting for more signs of economic recovery in order to start buying real estate.