New home construction fell to an 8-month low in June, but there were indications of increased activity in coming months, the government reported. Economists were expecting housing starts to fall to 575,000. On a year-over-year basis, starts sank 5.8% from June 2009.
"The housing industry remains stuck in a rut, with both sales and construction activity moribund," said Mike Larson, real estate analyst at Weiss Research. "Builders simply lack the confidence -- or in some cases, the financing -- to ramp up construction." But building permits, a gauge of future construction activity, rebounded last month, posting the first gain since March. Permits rose to a seasonally adjusted annual rate of 586,000 last month, up 2.1% from a revised 574,000 in May.
New construction of single-family homes, the key sector of the housing market, slipped 0.7% last month to an annual rate of 454,000. The annual rate for new construction of multi-family homes -- buildings with 5 or more units -- was 88,000.
"Cheap mortgage rates and cheap homes should help ease the housing market's pain," Larson said. "But until we see signs of life in the labor market, we're just not going to see a robust recovery -- only more malaise."
Call or email me to talk about purchasing a new home in Hamilton or Robbinsville or East and West Windsor. Builders may not be as active, but there are some great homes available ready and waiting for you.
Joe Giancarli, Sales Associate
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/
activerain.com/blogs/josephgiancarli
(resource: NewsGeni.us)
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