Single-family home building on the rise

For the first time in almost 3 ½ years, new construction of single-family homes is on the rise.  According to the National Association of Realtors (NAR), the confidence level in the industry this month is the highest in more than a year.  In addition, the pace of single-family home construction went up nearly 2 percent and building permit starts climbed nearly to 6 percent.  Joel Naroff, president of Naroff Economic Advisors, wrote, “It’s the general trend that matters and with housing, the direction is up.” 

The cause of this shift is uncertain; however, some speculate that housing incentives have contributed to the rise in new construction.  NAR believes that housing incentives have helped to grow single-family home building as well as small businesses.  For instance, NAR recognized the Small Business Administration loan program that provides fee waivers for some of its SBA programs and new loan programs and raised guarantees.  Visit http://www.sba.gov/ to learn more about the new SBA programs that may be available to you.

It is still unclear if this positive trend will continue.  Unfortunately, July was the last month that builders could start new homes and have first-time home buyers qualify for the tax credit.  New buyers can save 10 percent on the price of the home, up to $8,000 in taxes, if they complete the purchase by the end of November.  Nevertheless, real estate agents and builders are pressing Congress to extend the credit.

In closing, numerous signs have surfaced in the United States housing market signaling market stabilization after the worst housing recession since the Great Depression.  With unemployment still on the rise and foreclosures at record-high levels, the road to recovery may have a few more twists and turns.  Thankfully, the worst of it seems to be over.    

I hope you're right! If new, single family home construction in on the rise, this is truly great news. The US economy seems to drive off of housing and cars. When housing drops it all drops, flooring, appliances, furniture and all related industries.

This is nice, this is promising .. 10 per cent savings is quite interesting ..

thanks for the info.