Posts Tagged ‘building permit’
Groundbreaking for single-family homes edged up 3.2 percent in May, reaching its highest level since December, the Commerce Department reported Tuesday. Single-family construction is now up 26 percent from year ago levels, as the new-home market continues to inch toward recovery.
However, the volatile multifamily market bit into the pick-up in single-family construction. Overall housing construction in May dropped 4.8 percent compared to April, pulled down by a 21.3 percent decrease in May in multifamily construction.
Still, there’s reason behind home builders’ increasing optimism about the sector: New housing permits–a future gauge of construction–soared nearly 8 percent in May, reaching the highest monthly level since September 2008.
Builders’ Feeling More Confident About Recovery
Builders’ confidence is gradually building about the market for newly built, single-family homes. Builder confidence rose one point in June and continuing the trend of several months of steady increases, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The index is now at its highest level since May 2007.
Builders in the Midwest and West seem to be the most optimistic that the new-home market is improving.
The increase in builders’ sentiment is “reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates,” says Barry Rutenberg, NAHB chairman.
However, builders continue to cite overly tight lending conditions and low appraisals as major obstacles in completing sales.
Source: “Housing Starts in U.S. Fall 4.8% in May on Apartments,” Bloomberg (June 19, 2012) and National Association of Home Builders
If you are in need of an owner’s representative for building your own dream home in Aspen or Snowmass, Colorado or simply need to know how to go about building or remodeling a house as an absentee owner in the Aspen area or the surrounding communities of Snowmass, Snowmass Village, Woody Creek or Basalt, Colorado, we are happy to assist! Please give us a call today at 970.948.8258 for a FREE consultation