New residential construction increases in June
Posted on Friday, July 20, 2012 at 4:08:56 PM
Construction rates, property values and homebuilders' confidence levels are reaching new highs. According to the U.S. Commerce Department, housing starts rose 6.9 percent in June 2012 to a seasonally adjusted annual rate of 760,000 units - the highest rate experienced since October 2008.
"Demand has bottomed out and we expect continued improvement," said Yelena Shulyatyeva, a U.S. economist at BNP Paribas, who projected a 750,000 pace of housing starts for June. "We’re in a recovery, a very slow one."
In addition, construction for single-family houses increased 4.7 percent to an annual rate of 539,000 units, Bloomberg reports. This is the fastest growth rate experienced since April 2010, and indicates a progression in the real estate market. So far, the modest improvements have further boosted the economy with a surge in mortgage applications and residential construction projects.
Potential homebuyers trying to determine if now is a good time to buy may want to consider checking out residential financing opportunities such as a Standard Fixed Rate Loan from Home Loan Investment Bank. The short- and long-term programs, competitive rates and cash out options are ideal for people who are looking to move into a new home.