Housing Market Continues Recovery
Highest Level In Four Years
The U.S. Commerce Department has announced that groundbreaking on new homes increased sharply in September, advancing 15% compared to August, and reaching its highest level in four years. Housing permits rose 11.6%, with gains seen throughout the nation, reinforcing the notion that home construction is experiencing an uptick and the sector is sustaining growth following several years of sluggishness.
By comparison, in 2011, home builders started construction on just 434,000 single-family homes, the worst figure ever recorded by the government. This year, the number of new single-family homes is now predicted to rise by 21%, and then increase 26% and 30% in the next two years, according to the National Association of Home Builders.
A stronger housing market, analysts say, can help drive down the unemployment rate, which is currently 7.8%. Economists estimate that three new jobs are created for every new home that’s built in the U.S. The market can also be an indicator of an uptick in consumer confidence. To that point, while applications for U.S. home mortgages dropped last week, demand for purchase loans hit its highest mark in four months, the Mortgage Bankers Association reported. October consumer sentiment reached a five-year high in preliminary October readings, according to data from Thomson Reuters and the University of Michigan.