Thursday, January 20, 2011

2010 2nd Worst Year in 50 for Builders reported today that "Builders began work last year on the second fewest number of homes in more than half a century, as the weak economy kept people from buying houses.  Builders broke ground on a total of 587,600 homes in 2010, just barely better than the 554,000 started in 2009. Those are the two worst years on records dating back to 1959.

"In a healthy economy, builders start about one million units a year. They built twice as many in 2005, at the height of the housing boom. Since then the market has been in decline.  One positive sign is that builders appear to be planning more projects in 2011. Building permits, considered a good barometer for future activity, rose 16.7% in December to a seasonally adjusted annual rate of 635,000, the best pace since March.

"Housing construction fell in all parts of the country in December except the West, where activity surged 45.8%. Construction dropped 38.4% in the Midwest and was down 24.7% in the Northeast and 2.2% in the South. Severe winter weather likely affected activity in the Northeast and Midwest.

"The stagnation in housing is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders."

Call or email me to talk about options so you can buy a new home in 2011 in Hamilton or Mercer County and surrounding counties.

Joe Giancarli, SA
Real Estate Advisor

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