The new construction housing market continues to make gains.
Wednesday, the U.S. Census Bureau reported Housing Starts for single-family homes up 5.5 percent in August to a seasonally-adjusted, annualized count of 535,000 units nationwide.
The report marks the fifth month of six that single-family starts increased, and marks the highest starts tally since April 2010 — the last month of that year’s federal homebuyer tax credit program.
A “housing start” is a new home on which construction has started and the steady growth in single-family starts suggests a stronger Illinois housing market into 2013.
All four U.S. regions showed single-family housing start growth on both a monthly basis and on an annual one :
- Northeast Region : 4.5% monthly growth; 31.4% annual growth
- Midwest Region : 15.6% monthly growth; 74.5% annual growth
- South Region : 3.2% monthly growth; 17.2% annual growth
- Midwest Region : 4.6% monthly growth; 23.9% annual growth
The data is just the latest in a series of signals that today’s Chicago new construction housing market has put its worst days behind it.
The nation’s home builders appear to agree, as well.
Earlier this week, the National Association of Homebuilders released its Housing Market Index, a monthly metric which measures homebuilder confidence in the new construction market.
The homebuilder trade association put the HMI at 40 — a 6-year high. Builders expect a strong finish to 2012 and for momentum to carry into 2013 and beyond.
The new construction market — like most of housing — has been fueled by a combination of the lowest mortgage rates in history, ample access to low- and no-downpayment mortgages, and an ever-shrinking supply of new homes for sale.
In July there were just 142,000 new homes for sale nationwide, down 14% from the year prior. As supply shrinks, all things equal, new home prices rise.
If you’ve been considering new construction, therefore, talk to builders sooner rather than later. As demand for homes heats up, prices are likely to rise.