New home construction starts down for November, but on track for great year

Posted on 12/19/12 No Comments

The real estate industry is important to the health of our economy in countless ways, construction of homes, especially. The National Homebuilders Association reports that every new home built provides three jobs for a year and on average, an influx of $90,000 to a region’s tax base.

It’s good news then, when we hear that housing starts (the building of new homes) is on track for its best year of the last four, even though November starts were down from October. However, month to month fluctuations are not out of the ordinary.

The national housing market suffered a serious blow, as did the quality of life for millions of people more importantly, when Hurricane Sandy blasted ashore in New York and New Jersey. Thousands of destroyed homes will have to be rebuilt in the next several years. Housing starts were already slow in the northeast and its not expected that the Sandy rebuilds will create an immediate impact on housing starts.

A healthy market, supposedly, should see well over 1 million new houses come out of the ground each year. There’s more than enough room to question that rate, since the real estate market has bounced up and down significantly in the last decade. Plus, no one is really sure just how “normal” the years prior to the current state of the market really were.

Still, home builder confidence continues to rise, as contractors and architects are finding more opportunities for work. Architects were hit especially hard after 2008.

In the Triangle, the market continues to move positively with everything trending up, although somewhat slowly. But that’s probably for the best. Building permits are really climbing, which is probably the best market sign of them all. Supply for resale homes is down and demand is growing, which should eventually equate to price increases. Notable jumps in home value have been somewhat hard to come by of late.



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