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Construction for new homes boost up - Brighter outlook is still a far cry



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By : Rudson Tren    99 or more times read
The economy is still in a situation where it will take years to become strong. However, good news for the housing market is that the construction of new homes picked up a little bit of pace in the month of July. But the future is not very bright. The month of July registered a growth of 1.7% in the housing starts with the seasonal adjustment of annual rates registering 546,000 in the month of July. The government sources reported that the home building for future looked very weak. This is because of the fact that the economists had some different expectations. They expected the housing starts to be at 555,000. When compared to construction of new homes for the month of July in 2009, the house starts were lagging behind by 7% in the same period this year.

Economists believe that this ill fate for the housing market will continue for several years to follow and that the crusade of economic recovery will not be led by housing industry. As far as the future activities are concerned, the stats show a downward trend. Building permits applications, which are considered to be a measure for the construction activity in future actually fell in July. It was previously at a figure of 583,000 in June, but went down to 565,000 in July, down by 3.1%.

The economists were expecting this fall to be modest one at 573,000 instead of 565,000. The permits in July 2009 were 3.7% higher than the permits in July 2010. This figure has nothing to encourage the housing market and there is nothing to help it out as well. However, economists are saying that there is something good even in this bad situation. The permits are down at rock bottom and there are not enough chances for further degradation. The worst thing is that the key factor of the housing market single-family home constructions fell by 1.2% in July and the annual rate was registered at 421,000. The reading for multi-family homes was at 129,000.

This bad state of the housing market has resulted from the massive amounts of foreclosures throughout the country. This however, is good news for the homebuyers who can now get hold of a preoccupied property at a very low price, because the banks are giving huge discounts.
For more information of foreclosure listings, visit foreclosuredatabank.com, your source of fixer upper homes for sale.

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