According to the government on Friday, positive news points towards the recovery of the housing market as more building permits for increased construction have been shown to be on the rise. In just over a month the Government said that new construction had risen 2 percent. Much of that however can be attributed to apartment building which is also on the rise.
The continued increase in home foreclosures also has much to do with the rise in apartments, as many are finding it much more affordable to move into a nice apartment for half the price of their mortgage. When compared to the construction in 2005, new building construction is down by two thirds. While this small glimmer of hope shows there may be a slight turnaround in things right now, moving along will be a snails pace to coming back to stable levels.
While there are many foreclosures, new home construction lends to jobs being filled. It is estimated that each new home built generates a total of enough income for about 3 people during the process. Many point to the stability in new construction as the key to success of job growth across the USA. Many construction workers have high hopes for the rest of April because of deadlines required in order to file for the $8000 tax credit for new home owners by the Government.
Overall things still appear stale, but small glimmers of hope come from reports of the following from the The National Association of Home Builders who state that their housing market index has jumped this month to the highest level since September. This is definitely positive news, and needed for those who continue to struggle in the construction industry.
The markets will recover, its just a matter of when and how. Many of the government policies and programs may take several years to come into full swing. The health care sector too plays a vital role in how the economy recovers, so we will just have to wait until we see statistical and physical proof that those in power are making choices to improve the situation.
