According to a report released by the National Association of Home Builders (NAHB), construction of single family homes rose by 0.8 percent throughout the country in January. The number of permits for the construction of these homes also rose 1.9 percent to hit a record high in the past four years.
Combined construction projects of multi-family and single-family homes gained 16.7 percent in the West while recording a 4.1 percent growth in the southern region. Permit issuance also hiked up for multi-family homes recording a 1.5 percent growth. Future building permits rose the highest in the Northwest region accounting for a 10.1 percent gain. While in the Midwest and Southern region, a 1.4 and 1.1 percent growth was recorded, respectively.
Building confidence for new and completed single-family homes was also virtually unchanged for the month of February when compared to the figures of January.
"We ended 2012 on a solid note and we do have some momentum heading into this year," Gus Faucher, senior economist at PNC Financial Group Inc, said in a statement to Bloomberg.
"The fact that single-family starts are up is very encouraging. It is more important to the economy in terms of employment and growth." he added.
However, new construction starts fell to 8.5 percent in January after witnessing a surge of 15.7 percent in December. The market is quite volatile where the construction of multi-family homes is concerned as new constructions of such residences declined 24.1 percent.
The housing economy is on a steady rebound. Economists believe that the emerging real estate boom will be the prime driver of economic prosperity in the country. However, the sector still has to cover a few miles before the scenario is bright. Construction starts are still a mark below the prescribed level of building.
To complement the low mortgage rates prevailing in the market, more construction hiring and easier access to credit is required.
Anyhow, builders are now gearing up for the spring selling season which traditionally starts from the week after the NFL Super Bowl event. As permits and construction projects are gaining momentum, positive trends are expected to set in soon in the real estate sector.
