Bad News: June housing construction rises unexpectedly
By Daniel at 17 July, 2009, 5:10 pm
Again, it is bad thing, I can’t believe many people think it is actually good sign of improvement. This is the stupidest sign to show that things are getting better. What genius thinks putting more product in an already glutted market is a good thing? Adding more new empty houses to an already flooded market of empty homes.Home foreclosures are on the rise again and until the credit market loosens up it will continue.
“I work in the housing market and it is beyond bad. It is made worse by Obamas disasterous policies such as the so-called stimulus.
Obamas is putting us so far in debt investors are holding back fearing rising interest rates. I know, cause I speak to them. I am a civil engineer and work with developers who build housing developments.” Jim
June housing construction rises more than expected
WASHINGTON – Construction of new U.S. homes rose in June to the highest level in seven months as builders rushed to pour foundations for homes that must be completed by the end of November for first-time buyers to take advantage of a special tax break.
The Commerce Department said Friday that construction of new homes and apartments jumped 3.6 percent last month to a seasonally adjusted annual rate of 582,000 units, from an upwardly revised rate of 562,000 in May.
It was better than the 530,000-unit pace economists expected, and was the second straight monthly increase after April’s record low of 479,000 units.
“This was the most positive housing report in ages,” wrote Patrick Newport, an economist with IHS Global Insight.
Homebuyers are being attracted by lower prices, and first-time buyers can also take advantage of a tax credit worth 10 percent of the purchase price, with a cap of $8,000, which was included in the federal stimulus package.
“The largest spark…has been the looming deadline,” said David Crowe, chief economist for the National Association of Home Builders. His trade group said Thursday that the confidence level of builders has risen to the highest level in nearly a year.
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