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Good News Amid Increase in Foreclosed Home Listing in 2010

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By : John Cutts    99 or more times read
A high number of houses in the U.S. were foreclosed during the first quarter of 2010, adding to the ever expanding foreclosed home listing in the country. However, this data is somewhat offset by the rise in housing starts during the same period.

The March increase in the number of homes being constructed is the highest increase recorded in the past 16 months. According to real property experts, the increase is mainly due to the high construction rate among multifamily houses.

Multifamily residential properties account for about 20% of the housing construction market, effectively battling increasing rates of duplex foreclosure homes for sale. Details from the Commerce Department showed that single family houses under construction declined by about one percent, but construction permits for such houses rose, which signals more construction activities in this segment in the coming months.

Foreclosures in major cities, including foreclosed homes for sale in Texas, continue to increase in 2010. This results in weakening residential structure prices which takes its toll on home builders and on employment in the construction industry.

All in all, expanding foreclosed home listing in the country contributes to the slowdown in economic recovery. The report that housing starts are showing signs of strengthening has been welcomed by housing market observers and is being seen as a positive sign in terms of overall economic recovery.

The number of house construction in the U.S. reportedly increased by 1.6 percent which translates to a 626,000 annual rate. The increase is higher than what was predicted by economists in the beginning of the year. This also resulted in the revision of the February 2010 data from an initially reported decrease of 5.9% to a gain of 1.1%.

The decline in single family home construction was somewhat offset by the surge in multifamily housing construction which was estimated at 18.8%. However, real estate market analysts are not expecting this housing start increase to continue due to problems associated with the commercial real property business; including escalating rates of vacancy in apartment buildings and increasing commercial property foreclosures.

According to market analysts, the rise in home construction during the first quarter of the current year is a welcome sight, particularly in the midst of continuous increase in foreclosed home listing numbers.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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