Recognizing a recovering housing market involves looking beyond how many houses are selling and what their selling for. Many other factors help determine whether the housing slump is truly coming to an end and one such factor is housing permits. If builders are applying for more housing permits, they are intending to build more houses, which imply willing buyers with the financing to back their future homes.
According to a recent article on CNNMoney, builders applied for permits in May 2012 at the highest rate since September of 2008. This coincides with a National Association of Home Builders survey, which recently found that builder confidence was at its highest since 2007. Though permits have risen, the number of new house starts has not yet grown to match the increasing permits. In fact, housing starts declined 4.8% in May compared to April; however, the increasing permit requests still bode well for the future of the housing industry.
One of the perks to new home building is that it can have a stimulating affect on the local economy and create new jobs. For the building process alone, most homes will employ an architect, carpenters, plumbers, electricians, painters and laborers. According to the National Association of Home Builders, building a new home creates three new jobs and the impact on the local economy for 100 newly built homes includes a generation of $21.1 million in local income, $2.2 million in taxes and local government revenue and 324 local jobs. For many people still struggling in depressed areas, new homes are symbols of hope.
If you're thinking of buying or selling a home in the East Lansing area, please get in touch me at MyRealtorRob. As an East Lansing realtor I can help you find the home of your dreams and even connect with you with a great local builder if you prefer to be there from the ground up.
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