Home Construction Gains Steam
Building permits jumped by approximately 5% from January’s level and 34% from just a year ago to an annual pace of 946,000. Building permits are typically seen as a good measure of builders’ confidence in the housing market. February was the best month for permits since June 2008!
Additionally the Census Bureau reported that builders started construction at an annual pace of 917,000 homes in the month, up slightly from the pace in January and up nearly 28% from the levels last year.
Many factors have helped to boost the housing market in recent months, including increased sales in both new and previously-owned homes, a drop in the foreclosure rate and near record low mortgage rates. The nation’s decline in the unemployment rate is also helping. And the increase in home building and construction hiring is one of the factors helping to bring down the unemployment rate as builders scramble to look for workers.
Here in our Metro Atlanta market we are experiencing an inventory shortage which is causing a seller’s market and forcing home values upward. While it may be a seller’s market now, it doesn’t mean that buyers are not getting great value! Homes values still have a way to go before they recover from the devastating events that hurt the housing market nationwide, but this is truly a prime market right now.
If you are in the market to buy or sell, or would like a FREE Market Analysis to find out what your home is worth, call or contact us today at (866) 465-2736. Or you may fill out our contact form below and we will get back to you as soon as possible.