December 2011 marks slight increase in new single home building projects
Posted on Wednesday, January 25, 2012 at 10:04:53 AM
In December 2011, builders broke ground on a seasonally adjusted annual rate of $657,000 single family homes, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
This is a 7.8 percent increase above the December 2010 estimate of 630,000.
“We expect further sustained gains in starts and permits over the next few months; a real recovery is getting started,” Ian Shepherdson, chief U.S. economist at High Frequency Economics, told the Washington Post.
The increase in single home building has created an influx of residential financing opportunities for consumers looking to upgrade to a larger new home or entering the market as first time home buyers. As consumers apply for mortgage loans and home sales increase, builders are regaining confidence and breaking ground on new projects.
According to the news source, the National Association of Home Builders/Wells Fargo builder sentiment index rose in January to its highest level since January 2007. Overall, the housing industry is tentatively entering positive levels as both consumers and industry professionals are gaining momentum.