Housing construction approaches end of year on positive note
Posted on Wednesday, December 19, 2012 at 4:44:53 PM
Following the housing market collapse, property values declined more than 30 percent in some areas, which made homeowners unwilling to sell. As a result, the national inventory thinned significantly. Luckily, residential construction activity surged so far this year, as builders continue to fill this void.
The number of building permits issued in November rose 3.6 percent from October, to an annual pace of 899,000 units, according to a report from the Department of Housing and Urban Development. This could give prospective buyers additional homebuying options early next year.
While future homebuilding activity appears bright, the the construction starts rate actually edged lower last month, the report said. During the course of November, housing starts fell 3 percent from October to an annual pace of 861,000. Despite the slight decline, the rate was still well above November 2011's pace of 708,000 units.
"By region, starts in September were led down by a 19.2 percent drop in the West Census region, followed by the Northeast with a 5.2 percent decrease," analysts from Econoday said. "The Midwest rose 3.3 percent while the South advanced 2.9 percent."
Consumer considering the purchase of a property in the coming months should complete a mortgage rate comparison with Home Loan Investment Bank to ensure they get the best deal possible.