More builders break ground in October
Posted on Tuesday, November 20, 2012 at 2:35:42 PM
A thinning property inventory left prospective buyers with limited options so far this year, but homebuilders recognized this development and continued to fill the void in October.
During the month, the new residential construction rate increased 3.6 percent from September to an annual rate of 894,000 units, according to a report from the Department of Housing and Urban Development. Meanwhile, on a year-over-year basis, construction surged nearly 30 percent, up from October 2011's rate of just 667,000 units.
"October's gain is centered in the West and Midwest with the South posting a small decline and the Northeast, which was hit by Hurricane Sandy at month end, posting a sizable decline," said analysts from Econoday.
Despite the improvements, the number of housing permits issued during the month actually declined 2.7 percent, the report said. This could indicate there may be less residential construction in the coming months. However, the development is not totally unexpected, as real estate activity often slows in the fall and winter months.
As new properties make their way onto the market, borrowers should examine a mortgage comparison chart. This may be able to provide them with the options they need to make the transition to homeownership.