Things seem to be looking up for those of us in real estate and development! Sources at the Commerce Department report that the housing market for new homes in July escalated by almost 6%, due in part to an uprising in the development of apartment buildings and multifamily units. Contracted building of these types of dwellings increased over 25%. In contrast, single family homes dropped off by over 2%.
With construction of these large projects on the rise, relief seems to be eminent for our housing market, which began floundering after the economic decline of 2007. Due to a plethora of foreclosed homes on the market caused by this slump, sale prices have been bottomed out and financial strain has plagued both buyers and builders. Fortunately, this scenario looks to be slowly improving. The economy is definitely on a slight upturn with employment increasing by a moderate percentage. That, paired with the record low interest rates that are still in place, has people out home buying and business is, therefore, increasing.
Despite the current monopoly being claimed by apartments and multi homes, there is some evidence that single family home construction will improve in the months to come. Although things seemed to have stalled out for the moment, building applications exceeded single family home starts in July. That, in itself, is a positive factor pointing toward a slight rise in the last quarter of this year.
After four back to back months of housing gain, and an enthusiasm for new home purchases, builders are the most confident they’ve been since 2005. The increase of motivated buyers inquiring about housing has them feeling sure enough that they now can see a glimmer of hope for the housing market. It may actually be fixed in the near future. Housing prices are stable, the amounts of available homes for sale are down, and the need for building new dwellings is rising. Conditions are definitely better than they were just one year ago.
There’s also great news for the potential home buyer. According to mortgage mogul Freddie Mac, interest rates have hit a momentary stalemate. At only 1.1% above their lowest record set in November of 2012, and after a slight rise in the early and middle part of this year, current mortgages on a $200,000 purchase are only up $125.00 a month, making it an opportune time to invest in a new real estate property.