The housing market is showing signs of improvement from a variety of different indicators. In the past several months, there was a noticeable jump in new home construction that is raising hopes for a better housing market in the near future.
For the month of April, housing starts rose 4.3 percent from the previous month. This is the highest level in more than five years. The increase in new home construction is due to an increase in single-family units, which showed a 6.7 percent growth in April. According to the National Association of Home Builders (NAHB), this is driven by ”housing laws, changes in mortgage rates, and rising consumer confidence.”
Furthermore, the number of home sales also rose in April, increasing by 5.1 percent month-over-month. This is not a surprise since existing home sales have been consistently increasing since December.
At the same time, the number of homes on the market is shrinking. This is especially evident in the inventory of starter homes, which is at a very low level. This indicates that people are buying up lower priced homes quickly, which is also a positive sign for the housing market as a whole.
That being said, the housing market is still far from fully recovered. While new home construction is on the rise, there is still a lot of work to be done in order to get to pre-recession levels. Additionally, there is still an issue of affordability for many people, since the cost of homes is still relatively high. The continued rise of mortgage rates is making this situation increasingly dire.
Overall, the recent jump in new home construction and increase in home sales are positive indicators for the future of the housing market. The housing market may not be fully recovered yet, but it is showing signs of improvement. Hopefully, these indicators will continue to improve, and eventually lead to better affordability and access to homes for everyone.