Sep
21

Unexpectedly Good News for New Construction

September 21, 2010

So, right after builders tell us that their confidence is low regarding newly built homes, word comes that new construction in August hit its highest level in four months.

The Commerce Department reported today that construction of new homes jumped a much-better-than-expected 10.5 percent in August from July to its best month since April.

In addition, the amount of permits filed to build new housing units rose 1.8 percent in August from July, after analysts expected little to no increase.

The best part of today’s positive news is that it has nothing to do with the federal tax credit.

“Today’s data on housing activity is welcome positive news,” said U.S. Commerce Secretary Gary Locke. “We’re headed in the right direction, but we know that the housing market is tied directly to jobs and incomes. That’s why this administration will continue to pursue policies, such as the new business investment tax break, that will spur growth and help put more Americans back to work.”

On Wednesday, the National Association of Realtors will report on August sales of previously owned homes. Let’s hope the news is good there too. Check back at Chicagoland Real Estate Forum for all the details.

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