The US Census Bureau and Department of Housing and Urban Development (HUD) recently released new estimates showing new single-family home construction jumped in July of this year increasing 12.8 percent higher than in June.
For four consistent months, new start-up housing have been at a more than one million per unit pace. For many years when new-home construction stalled behind several other economic measurements, however, start-up housing is now at the strongest level since October 2007. The good news adds to several other positive economic findings recently released that show the economy and real estate housing market have begun quarter 3 on a solid stance. However, even with the improvement, the total number of permits to construct new homes, which are a good measurement to predict future home construction dropped 1.9 percent from the previous month.
Even so, industry pundits are confident this is just a temporary decline. For many months, permits have increased and builder confidence reached a 10-year high in August.