Rebound?

According to a recent Census Bureau release there seems to be a rebound in the new home construction. Housing starts and permits have been up in June year over year. Housing starts took a 6.9% upsurge to an annual rate of 760,000. That surge puts housing starts at its highest level since 2008, 24% higher than the same time last year. Although permits fell marginally but were still up almost 20% from June 2011.

The National Association of Home Builders also conducted there own study recently. Its findings show that builder confidence is also on the rise across the board in every region.

Personally I feel this is due to the market finally bottoming-out. While there is a large amount of inventory currently on the market the dragging process of Short Sales & Foreclosed properties coupled with sellers who can not come to grips with the current value of their homes, buyers have to look towards new home construction to get what they want. Most buyers want a existing home that is in move in condition but it can be tough with so many unhappy sellers sitting on them.