The latest home building rate report brings good news for prospective land buyers and home builders. Construction on single-family homes is near a three-year high, rising 2.6 percent in April. Permits for single-family homes also rose almost 2 percent, indicating a secure rate of building and sales to continue.
The rate of construction growth is a strong sign towards the home market’s long-awaited recovery since the housing bubble burst five years ago. In all, single-family home construction has increased 39 percent from its record recession low. By capitalizing on this momentum, prospective land and home owners can have confidence in the real estate value of their purchase and take advantage of the currently record-low mortgage rates.
This month, builder optimism has also risen to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index. Homebuilders reported improving sales and higher traffic from prospective buyers as key influences on the sentiment evaluation, the survey showed.
“Homebuilders are reporting stronger demand,” Ian Shepherdson, an economist at High Frequency Economics, confirmed in a note to clients, crediting the improving labor market as one contributing factor to the growth in home building.
Need another incentive to build? According to the National Association of Home Builders, each home built also creates an average of three jobs for a year and generates about $90,000 towards the economy.
For more information on land buying opportunities and locations, visit southstarcommunities.com/ for pictures and details about SouthStar’s eight residential communities.