By Franklin YuThe U.S. Department of Commerce said that June experienced a 14.6 percent increase in new home construction, to a seasonally adjusted annual rate of 629,000 units. Most of the new construction is for rental real estate.
Groundbreaking for single-family homes rose 9.4 percent, but construction of large apartment units surged by 31.8 percent, reflecting a growing trend of Americans shunning home ownership.
Applications for building permits, an indication of future new construction, increased by 2.5 percent compared to the previous month.
Foreclosures Drop in California
California, one of the hardest hit states during the subprime mortgage crisis, saw its foreclosure rate tumble by 19 percent during the second quarter, to the lowest foreclosure default rate in more than four years.
According to data from MDA DataQuick, a San Diego-based market research firm, 56,633 default notices were served in the second quarter in California, which is more than 19 percent lower than the same quarter last year, and 17 percent lower than the first quarter.
What does it mean for the regional and national economy? “It now appears likely that, barring some new economic shock, the worst of the price declines are behind us,” said DataQuick President John Walsh in a statement.
The Practical Entrepreneur: Real Estate Investments
Since peaking last year, foreclosure numbers have declined nationally due to a combination of more homeowners challenging foreclosures in court as well as more effort by lenders to restructure loans to avoid foreclosure altogether.
Last year’s “robo-signing” scandal has also put a dent in lenders’ willingness of processing quick foreclosures.
via Epoch Times.
New home construction in your area
What are you seeing in your area? With builder confidence, permits and starts up a bit in single family homes and up considerably in the multi-family sector, what are you seeing in your area? We are hearing a lot of reports of new subdivisions and existing subdivisions firing back up.