Last month, housing starts dramatically rebounded from perpetually lower rates. In fact, according to the latest housing report from the U.S. Census Bureau and U.S. Department of Housing and Urban Development, housing starts in June were recorded at 1.22 million. That’s an 8.3 percent increase since May and 1.2 percent increase since June of last year. As a result of this significant jump, industry experts have introduced the idea that this will be the biggest year for homebuilders in 10 years.
Experts particularly believe this could be a great year for homebuilders due to the disparity of housing demand and shortage in actual home sales. With today’s strong economy and high home buying demand, builders have the opportunity to make up for this imbalance in available housing.
Not only have housing starts dramatically increased in June, but also building permits for single-family homes. According to various experts, this is a great indicator that construction will continue throughout the upcoming months—which is vital for reducing the current market’s high levels of competition.
“Though a recovery in housing starts in June is welcome news, more consistent gains are needed to help rebalance the housing market,” reports Lawrence Yun, chief economist at the National Association of Realtors. “The latest 1.22 million in total housing starts is still well below the historical average of 1.5 million.”
“That is why the country is experiencing a stubborn housing market,” Yun continued. “With rising population and steady job gains, drastically more new home construction is needed to fully and satisfactorily house new households that will be formed this year and upcoming years.”
As the housing industry continues to bounce back and become a great year for homebuilders, it’s important to stay up-to-date with the latest market news. Subscribe to our blog to stay informed on news about home buying and home renovations, as well as refinances. For more information about the housing market, or to learn more about home financing, contact one of our mortgage specialists today.