Some new figures were released which make me feel good; the figures on new construction. This is not necessarily in regards to construction loans, but in regards to new homes being built all around. Some of these numbers may be a big developer and others might be from homes built on spec by contractors. There hasn’t been a lot of building going on, and for some time things were just dragging along. Building a home was more costly because it could be custom, unless of course it was part of a development and was already done.
The number of new homes being built went up 7.2% in the month of March, and the number of units that went up was around 540,000. This is significant in a time when housing prices have dropped. There are different dynamics when it comes to determining the number of new homes being built, because there are some people who believe that is the only way to get a home they love. There are plenty of homes in the inventory to choose from now, and it gives homebuyers the chance to find a majority of the features they love, while having some room to customize their home or add on later.
There was also an increase in the number of permits that went out; an increase of 11% from February to March. That is significant and show progress from last year as well. Builders were folding, and everything was getting stagnant, but look how far it has come. This should be a sign of better things to come. We remain hopeful-always.
-Mayer Dallal
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