Housing Inventory and Increasing Construction
Most of these markets are in the West and Southwest, with the gains above mid-2000s bubble, but plenty of other markets are still struggling to recover lost value.
In most of the nation’s largest markets, home values have more than recovered from the collapse of the housing market.
Housing starts were up in August, according to the latest Housing Starts Survey from the U.S. Census Bureau. According to the Survey, privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,282,000, 9.2 percent above the revised July estimate of 1,174,000 and 9.4 percent above the August 2017 rate of 1,172,000.
The Census Bureau found that despite the increase in construction starts in August, now privately-owned building permits fell, 5.7 percent month over month to a seasonally adjusted annual rate of 1,229,000, and down 5.5 percent year over year from 1,300,000 in August 2017.
Despite this, First American Chief Economist Mark Fleming stated that the increase in starts is enough to indicate a strong market.
“The growth in housing starts is welcome news after two consecutive monthly declines,” .
“The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages.”
What worries Realtor.com Chief Economist Danielle Hale is the increase in multifamily construction, leaving single-family construction behind.
“Although the jump in starts is good news for the overall economy because multi-family construction will boost GDP and provide jobs and incomes to the builders, the overwhelming majority of multi-family construction is built for rent.”
“It will offer no relief to the inventory-starved home buying market and could exacerbate the trend of renting becoming more affordable than owning. Without entry-level single-family home construction, millennials will continue to lag behind other generations in their ownership rate and experience a delay in the wealth building that comes from homeownership.”
Selling or Buying doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice. If you prefer a more personal touch, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate
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