National Housing Update
July marked a slowing of construction of new homes; dropping from already low levels. The Commerce Dept. stated on Tuesday that housing starts were down by 1.5% to an annual volume of only 604,000 units (seasonally adjusted). It should be noted that this was in line with Commerce Dept. estimates. The current rate of 604,000 annual units is roughly fifty percent of what economists claim is necessary to maintain a healthy housing market.
Housing Recovery Not Picking Up
“There is still no sign yet of a pickup in housing,” says Patrick Newport (economist at IHS Global Insight as quoted on MSNBC News). With weak employment cited as a major contributing factor for housing lackluster performance. Distressed properties like short sales and Foreclosures are lowering demand for new houses due to the fact that distressed properties are statistically much lower in price.
Increase In Housing Demand To Come From Younger Generation
Some industry insiders see the next untapped market for homes is Younger Americans who may be currently staying at home longer or delaying entering the work force. As this new generation enters the workforce and becomes independent and requires housing new gains may well be sparked; but employment numbers need to improve for sustained recovery.