Housing Permits Spike For The 2nd Straight Month in Colorado

By
Mortgage and Lending with First Time Home Buyer, Mortgage Rates, Pre-Approval NMLS 243370

<!-- This material is non-exclusively licensed to Ben Yost and may not be copied, reproduced, or sold in any form whatsoever.-->

Housing Starts Jan 2008-Dec 2009A "Housing Start" is a privately-owned home on which construction has started. It's an important gauge of housing health because it tracks new housing stock nationwide.

In December 2009, starts fell by nearly 7 percent.

The news is mildly disappointing but not too bad. The likely cause for the Colorado Housing Starts drop is December's rough weather conditions. It's tough to break ground when Mother Nature won't coordinate and last month was especially hazardous in a lot of parts of the country.

More cheery, however, is that for the second straight month, Housing Permits exploded.

A housing permit is an certification from local government that authorizes construction. After posting a 7 percent gain in November, permits rose by another 8 percent in December.

It's a signal that housing is, indeed, in recovery -- despite the falling number of actual starts. More permits mean that builders plan to bring more Colorado homes on the market for what's expected to be a very busy spring home-shopping season.

According to the Census Bureau, 82% of homes start construction within 60 days of permit-issuance.  Therefore, Housing Starts should start rising soon anyway.

For Colorado home buyers, the news couldn't be better.

With more homes coming online, competition among home sellers should increase, and that will suppress the rise in home prices in Aurora and nationwide.

It's basic economics.  When home supplies grow faster than home demand, prices fall.

Posted by

 

Thank you,


Ben Yost
Senior Loan Consultant

NMLS#   243370  LMB#  100023031

New American Funding
5299 DTC Blvd. Suite 300

Greenwood Village, CO 80111

 

Cell:     303.587.4297

Direct:  303.731.4718

Office:  877.884.3452 x4643
Fax:      303.889.5229
Email: 
ben.yost@nafinc.com
Web:  
www.newamericanagent.com/Benyost

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
mortgages
fha
denver
colorado
mortgage loans
mortgage rates
aurora
home loans
lenders
va
refinance
refinance rates
first time ho

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
196,498

Ben Yost - 303-587-4297

FHA, VA, Conventional - Mortgage Loans in De
Ask me a question
*
*
*
*
Spam prevention

Additional Information