Yesterday, Bloomberg reported that new construction of single-family homes took a bit of a jump last month.
While at depressed levels compared to pre-recession activity, the spike is seen by some as a sign that the builders’ market could be beginning to stabilize. Click here to see the story.
Implications: I’m thinking about two factors that could be influencing these nice numbers. First, new home construction might be seen by some as an attractive alternative to shopping the cloudy waters of existing home sales (foreclosure or short-sale buyers can find the routine tiresome, and many “great deals” turn into a bidding war with multiple buyers and even real estate investors). Second, more people are buying a place to live (rather than looking at their home as a real estate investment)… making new home construction a more attractive way to get the custom attributes the buyer really wants.
Mike Anderson
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