Following is an article from Bloomberg speaking to a huge increase in housing build starts of 9.3%. After speaking with my many American associates over the past year, regarding the mass amount of pending-foreclosures not-yet initiated by the banks... I am surprised about this report. Perhaps the builders have just spent too much time on the side-lines and the cost of developing new homes is less expensive that not doing anything? Roland with Remax Select Properties
“Builders broke ground in November on more houses than at any time in the past 19 months, led by a surge in multifamily units, signalling the market is stabilizing heading into 2012.
Starts increased 9.3 percent to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News and the most since April 2010, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, also climbed to a more than one-year high.
Work on multifamily units like apartments and townhouses is growing as the rental market improves. Single-family-home construction may be starting to strengthen as lower home pricesand borrowing costs near record lows draw in some buyers, even as builders face competition from existing houses as another wave of foreclosures throws more marked-down properties on the market.
“It’s a solid report,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who had the highest forecast in the Bloomberg survey. “For months we’ve been flagging the strength in multifamily construction, but now we’re starting to get signs that single-family is pulling itself off the canvas.” “
Source: Bloomberg
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