National foreclosure rates remain high in the U.S., but this did not discourage homebuilders to enter various local markets which they feel will have better chances of recovery than the rest of the country. One of these areas is Indianapolis, where homebuilders are starting construction projects in preparation for an expected housing market recovery.
Although the number of Indianapolis pre foreclosures is still high, companies such as Fischer Homes of Kentucky, Ryan Homes of Virginia and Potterhill Homes of Cincinnati have already started developing subdivisions or taken over existing projects since the last quarter of 2009. According to these companies, they are positioning themselves in anticipation of the end of the housing market crisis.
Officials from these companies revealed that the timing is perfect and that entering the market while there are thousands of foreclosed homes for sale in Indiana is the best time to do it. They revealed that getting involved in the housing market while it is still at the bottom level will provide them with more opportunities to build momentum.
In the past few months, national foreclosure rates showed some improvement although they remain at almost record high. The slight recovery, particularly in Indianapolis, has been attributed to the federal tax credit incentive. In Indianapolis, permits for new residential construction rose by 70% during the first quarter of 2010, giving support to local homebuilders’ optimism that the Indianapolis housing industry is on its way to recovery.
The same, however, cannot be said for the rest of the country as survey results released by the National Association of Home Builders showed that right after the April tax incentive, purchase of new houses and home foreclosures for sale continues to decline and maintains record low levels. The Department of Commerce also reported that construction of residential structures like apartments and new houses fell by 10% in May.
However, homebuilders in Indianapolis might be justified in their belief in the city’s recovery potential as Central Indiana recorded a two-percent increase in permits for new home construction in May. Although national foreclosure rates continue to affect most of the U.S., most local homebuilders believe that Indiana is one state that has the potential to recover faster than the rest of the country.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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