The U.S. Commerce
Department announces a latest year-end data which shows a 6.1% increase in the
production of new homes from the previous year. Another 16.7% rise was also
noted in the permit issuance for construction of new homes and apartments. The
rate of 635,000 units in December is the strongest pace since March of 2010.
The findings indicated that builders are getting ready for the spring buying season to replenish the very tight inventory of new homes for sale. Getting more permits will allow builders to supplement the improvement of buyer demand for the next season. The continuous funding of new construction of buildings of San Diego condos and existing viable projects goes to show that development in constructing is made more feasible which in return, facilitates in the real estate and economy recovery.
The recent surveys about home builders have proved reliable as it correspond with today's news. Builders are particularly cautious with new projects this time. However, given that they can obtain the necessary funds for a new construction, they anticipate in putting their employees back to work as economic conditions has improved over the New Year. Aside from that, the building code changes that are expected to go into effect in some states this January, also contributed to the increase in building permits last December.
Regionally, the West was the bright area in the housing starts report for December, posting a 45.8% rebound from a remarkably sluggish period in the last two months. Additionally, multifamily housing starts, which have a tendency to display greater volatility on a month-to-month basis, heightened 17.9% to a 112,000-unit rate.
Building permits are considered one of the indicators of a future building activity. In December, permits rose to 16.7% in both single- and multifamily sectors. The best pace since April 2010 was recorded on single family permits which rose 5.5% to a 440,000-unit rate while multifamily permits rose 53.5% to 195,000 units which is the best pace since January of 2009.
For further information on any Downtown San Diego Condos contact:
Gregg Neuman
1-800-221-2210
Contact the Neuman and Neuman Team
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