http://money.cnn.com/2013/03/19/news/economy/home-construction/index.html?iid=SF_E_River
There is good news this month in the housing market as home builders are filing for the highest number of building permits since 5 years ago in 2008. Ever since the housing bubble burst in 2007-2008, home building hasn't been able to recover so the 34% increase in building permits since last year is more than welcomed to go along with the other recent growth in the economy. On top of the new homes being built, there has been an increase in sales of new and old homes. This may be helped by the drop in foreclosures or the very low mortgage rate. With the new building permits, construction companies are hiring more workers, which will only help to decrease the unemployment rate. The actual cost of the raw materials for building homes has increased, so the construction industry is facing some problems even in this time of increased demand for homes.
TO see the housing market come back to life will only increase consumer confidence and also the ability for banks to have more control over the interest rate and hopefully see a spark in the economy that will reduce the unemployment rate
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ReplyDeleteIt is great to see that the housing market is finally picking up, as it is sure to give the economy a boost in its recovery. This increase in housing prices will definitely help those who owed more than their homes were previously worth and allow them to eventually have more income to spend, also boosting the economy.
ReplyDeleteHopefully next month when the unemployment numbers come out we will see a decrease in unemployment in effect of this. This is one sign of the economies move towards improvement.
ReplyDeleteNew construction, lower unemployment,and low mortgage rates are great to see, but how long will this continue? Will there be a point when no new homes are needed to be built and the workers are no longer needed? Housing prices may drop while unemployment may rise.
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