U.S. Housing Starts Jump

By
Real Estate Agent with GreatWest Realty DRE# 00827565

 

 


I was rather encouraged while reading through an article on MSNBC today.
  The news is quite good for construction starts on new homes, which have apparently been buoyed by the special tax break incentive provided to first-time home buyers.

The construction of new homes climbed in June to the highest point in seven months as builders scrambled to break ground for homes which must be completed by the last of November for first-time buyers to take advantage of the special tax break.


The housing start numbers in June, represent a 14+% increase in single-family home construction.  This represents the largest monthly increase since December 2004.  The construction of multi-family units, a chaotic segment of the market, fell nearly 26% from a month earlier.

For a complete report as presented by MSNBC, you can Click Here.

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Ambassador
1,541,659
William Johnson
Retired - La Jolla, CA
Retired Real Estate Professional

Hi Mryl, There is good news and some that is not so good. With the density out here, Condominiums having been having a pretty rough time of it. And I fear with the stricter underwriting guidelines and all the problems with being able to get financing, condos may be facing a steep upward incline before things gets fixed in that market. Our median price of sales increased this past month but the foreclosures are string to hit again and with the numbers I hearing, we still have a ways to go. But at least in the construction of new , it may help some with employment issues. And we need all the help we can get in any number of areas.

Jul 18, 2009 12:01 PM #1
Rainmaker
2,557,355
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

William - My concern is that once the tax credit incentive goes away, we will go back to business as usual.  And this will be just as the California 90 day moratorium on foreclosures expires.  I hope this hasn't simply put off the inevitable.  However, we have noticed our resale numbers have improved somewhat too. 

Like you however, our condo market is lagging somewhat behind.

Jul 18, 2009 01:22 PM #2
Rainmaker
93,314
Tina Allen
Exit Realty Tri-County - Mount Dora, FL

I am seeing sales rise in my county...even though the prices are lower than normal due to the foreclosures.  I am hoping they will level out soon.  Staying positive and hopeful!

Jul 18, 2009 01:23 PM #3
Rainmaker
2,557,355
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Tina - We actually had a bump upward in price in Sacramento County recently.  I'm hopeful in so many ways.  But am realistic enough to know there are factors out there stirring that will still require time to work through.

Jul 18, 2009 01:37 PM #4
Ambassador
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

That is good news, now we only need 5 more months in the same direction to be considered a trend.

Jul 18, 2009 03:39 PM #5
Rainmaker
472,275
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Myrl - you don't hear much about it, but I'd think they will create or extend the tax credit.

Jul 18, 2009 11:26 PM #6
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Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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