My Real Estate Blog

According to the U.S. Commerce Department, "Housing starts increased 1.7%, consistent with private ­sector expectations of a 2.0% increase."

"Today's data show that new housing activity appears to be stabilizing in the wake of the expiration of the home buyer tax credit," Commerce Secretary Gary Locke said. "However, a healthy economy requires not only a robust housing sector but strong employment and incomes, and President Obama remains committed to developing policies that encourage job creation and broad economic growth."

What does a recovering housing start market, in general, mean for homeowners? As your own local market begins to sprout up new homes, this in turn can increase jobs for the area. It also could indicate builders are confident enough in the local market to even start building. And if builders are confident, then you, as a homeowner could start to see your home value increase, as well as renewed buyers interest.

Right now the housing market in most of the country is in a holding pattern.  The two regions with improving housing starts were the Northeast and Midwest, each posting dramatic gains. The Northeast saw an incredible 30.5% increase in July, while the Midwest saw an equally impressive 10.7% rise.

These figures may be deceiving.  The National Association of Home Builders reports, "single-family housing production declined 4.2 percent to a seasonally adjusted annual rate of 432,000 units, its lowest mark since May of 2009." Why are the figures indicating a rise then? This rise in housing production could easily be due to a rise on the multi-family side of housing.

Either way, a rise is a rise, and that is a welcome sign in an ailing economy.