The US Commerce Department reported builders are slowing down the number of new homes being built. Housing starts dropped 5% in August 2011 with a 571,000 annual rate of build, according to the US Commerce Department.
New home construction is being constrained by high unemployment rates, a glut of foreclosed and empty homes and declining home prices. Tighter lending standards by banks and a lack of consumer confidence is also hampering new home construction in the US.
The inactivity of new homes being build is a natural reaction to the glut of homes on the market currently. The inventory levels need to be thinned out before a price rebound can occur, in our view. As this process occurs, we expect consumer confidence to improve should the US economy begin to show signs of growth. Should economic activity pickup, we expect more lending and a rebound in the US housing market.
The question is when will all of this occur? It is very hard to predict any market and calling the "bottom" is not an easy task. However, when it comes to housing and you plan on living in the home for at least 10 years, now is a good time to purchase a home, in our view (please see earlier posts for reasoning).
The market is diffcult to predict-- if you are looking to buy, sell, rent or lease a home, now might be a good time to take action.
If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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