The construction of new homes has surged in September to its fastest pace in four years according to the Commerce Department. Housing starts increased 15% from August levels into September, headed off by a 25.1% increase in the multifamily market. Single family housing starts went up by 11%, trumping their highest output since August of 2008. On top of all those good numbers there is also continued hope for increase in the future. One way to monitor or predict future new home construction is by analyzing the amount of building permits that are being applied for. In result of this analysis, the building permits have jumped 11.6% in September which means there is plenty of activity lined up for more new construction.
"One of the big headwinds for the economy has been the weak housing market, and this indicates that headwind has dissipated," Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Mo., told Reuters.
"Things are lining up for housing," says John Canally, an economist at LPL Financial in Boston. "It's another step in the right direction, but you still have a long, long way to get back to 'normal' in housing."
Although all of this is definitely good news for the housing market, new home starts are still far from that of January 2006, which was the peak of the housing market before the collapse. If all of this growth continues, not only will the housing market benefit, but also the economy in general. As we all know, the housing market has a very big effect on the overall economy.
source: realtormag
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