Housing Market Rebound Continues in November 2009
The continued improvement in the real estate market became more evident when a US Commerce Department report on Wednesday showed improvement in all sectors of the nation for home building. The report on December 16, 2009 of new home construction in November had risen to an annual rate of 574,000 and this was 8.9% above the revised rate of 527,000 in October. November 2009 is still 12.4% down from November 2008.
The largest increase of new home construction was in the Northeast with a 16.4% increase from October, South had a 12.3% increase, Midwest had improved by 3%, and the West showed new home construction improved by 1.9%. These are positive signs going into the winter months when construction normally tends to fall off.
There are several factors contributing to this new home construction increase; credit markets are loosening up, mortgage rates continue at record lows, and the extension by the federal government of home buyer tax credits. Qualified first time home buyers can still receive up to $8,000 tax credit and now qualified move up and repeat buyers can receive up to $6,500 credit through April 2010.
The US economy grew at an annual rate of 2.8% in the third quarter. Inflation appears to remain under control and was .4% in November. The evidence that inflation remains under control allows the Fed to keep interest rates low which is very important to the continued housing recovery.
David Craven
RE/MAX Mountain Realty
David@DavidCraven.com
Visitors to the above websites have access to real estate listings for sale in the Western North Carolina Mountain MLS. This access includes the ability to view all listed foreclosures and short sales. Real estate buyers can also register to receive information about properties that fit their needs when a new listing comes on the market.
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