Surging new home construction at two year high

December 20, 2011

Spike in home building

New home construction rose in November to its highest level in nearly two years, as multi-family starts and record-breaking low mortgage rates fuel building activity. Lending remains tight, but housing starts spiked 9.3 percent from October to November and are up 24.3 percent from November 2011, beating nearly all economists’ predictions for the month.

In addition to a spike in housing starts, building permits rose 5.7 percent from October are 20.7 percent year over year, welcome news after an extended period of depression in new home construction. The surge is not expected to continue at this rate as the growth is not sustainable and no sector is looking for another bubble, but it is hopeful news for one of the hardest hit sectors.

The shining star of the building industry remains multi-family communities that are breaking ground as the volume of multi-family starts have nearly tripled from last year as the sector experienced the largest number of starts since September 2008 which is around the time the economy collapsed.

Multi-family construction is in a growth period after a very long dry spell that many say caused immigrants to return to Mexico for lack of construction jobs, and many construction companies shut down, leaving a massive pool of potential employees for multi-family construction companies.

Non-Institutional Liens One of the issues that often comes up in the short sale is the issue of non-institutional liens (i.e., liens that are not mortgages). These are liens filed against the property or against the borrower, and they can get in the way of the short sale closing (or…
An economic consensus According to the December 2011 Zillow® Home Price Expectations Survey, home prices are expected to drop 1.57 percent in the fourth quarter of 2011 and prices are forecasted to continue dropping until the housing market hits its bottom which Zillow says will be in late 2012 or…

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Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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