For those of you that want to own a new home, good news is on it’s way. 2012 was the best year for residential construction since the recession low reached in March 2009. In December, the pace of single-family home construction, which makes up two-thirds of the market, increased 8 percent.
In general, building starts are up across the United States:
- Apartment construction, which is more volatile, surged 23 percent last month. It is now back to pre-recession levels.
- Applications for building permits, a sign of future construction, inched up to a rate of 903,000 — the highest level since July 2008. *realestate.aol.com
- The pace in which builders requested permits to start more homes ticked up to a 4 ½ year high.
During 2012, builders started work on 780,000 home, and even though that is roughly ½ of the annual number of start in a healthy market, it is an increase of 28.1% increase from 2011.
A number of factors contribute to this situation:
- Employer hiring is up
- Record-low mortgage rates
- Limited inventory of new and previously occupied homes available for sale
- In November 2012 sales of previously occupied homes were at highest level in 7 years
For these reasons, builder confidence spurred new home starts, adding to the economic growth and employment rates. However, builders are paying close attention to the political standoff between the President and Congress over budget deadlines and the potential need to boost the debt ceiling.
On average, new homes represent less that 20% of the housing sales market, but have a much bigger impact on the economy; Each new home built creates 3 jobs for a year and generates approximately $90,000 in tax revenue, according to data from the homebuilders association.
If you are looking for a home in Northern California, contact a Century 21 M&M Realtor. With over 25 offices from Roseville to Clovis (near Fresno) and Oakdale to Cupertino, Century 21 M&M is sure to have a Realtor that can help you find your dream home, whether that be a new home, or a previously occupied home. Please call toll free (800) 479-7900 to meet with California’s award winning Realtors.