New construction housing is in a post-recession rally.
As reported by the Census Bureau, on a seasonally-adjusted, annualized basis, last month’s Single Family Housing Starts rose 5 percent to 539,000 units nationwide. This is the highest reading since April 2010, the last month of that year’s federal home buyer tax credit.
A “housing start” is a new home on which construction has started.
June’s strong numbers also mark the fourth consecutive month during which Single Family Housing Starts have climbed. This, too, has not occurred since April 2010.
The data is yet one more signal to Geneva home buyers that today’s new construction market has its worst days behind it. The popular subdivision Mill Creek in Geneva has really picked up building new construction homes in their Tanna and Oakmont communities.
Today’s market for new homes has been spurred forward by low mortgage rates, but rising rents have played a part, too. In many parts of the country, a comparable home is less expensive to own than to rent, which creates an incentive for renters to buy homes instead.
The availability of low downpayment mortgage programs via the FHA and other government agencies helps as well.
It’s a good time to be home buyer. Mortgage rates are at all-time records, home prices remain low nationwide, and the real estate market is believed to be entering the beginning of a sustained, multi-year recovery.
If you’re thinking a buying a new home in Geneva, St. Charles or Batavia, please call me today at (630)945-7935.