According to MSNBC.com, the home construction industry was showing "signs of life" last month - November - while, as we know, foreclosures hit their lowest level in 18 months.
Could this be a sign of good times to come in 2011? Perhaps. I continue to be cautiously optimistic as the nature of real estate - or any industry really - coming out of this recession is to experience ups and downs as we find out stable footing. However, this recent news and data continues to give us reasons to cheer.
Here are some of those numbers, as reported by MSNBC.com
- In November, builders broke ground on new homes at a seasonally adjusted annual rate of 555,000 units. This represents a 3.9 percent increase from October.
- It is being projected that home construction will rise from about 590,000 units this year to 675,000 in 2011.
It's great to see that industry analysts are predicting home construction to rise in 2011. It may seem like a modest increase and not a very big number compared to the 2 million new homes that were built during the boom year of 2005. However, a major reason for these more modest numbers is that there remains a large set of inventory in resales - particularly with short sales and foreclosures. The industry is expected to gain 1 million foreclosures in both 2010 and 2011. With all of these bargain-priced inventory on the market, there just isn't as much of a demand for new home construction. Which makes a number of 675,000 predicted units in 2011 still impressive.
Read more about "Home construction shows "signs of life" - still a great time to buy a Phoenix home," at MyPhoneixmls.com
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