Recovery Report on the Housing Market: Housing Construction and Prices Rising

Steps toward the long road to the housing recovery have been making a slow, steady progress this past year.  Prices have begun to rise, sales are increasing, and construction permits to build new homes have significantly increased according to the Census Bureau.

New home construction is starting to heat up, with housing starts rising to the highest level since October 2008, according to a report from the National Association of Home builders (NAHB) . June 2012 reflected a strong increase in permits to build new homes, as there was a 19.3% increase when comparing figures to June 2011.

Sale prices for existing homes rose in April for the first time this year.  According to Yahoo! Financial reports from this month, economic data reveals rising homebuilder sentiment, leading to four consecutive months of steadily increasing home prices. “With home building numbers on the rise and prices solidifying, the housing market should start contributing to national economic growth for the first time since 2007”  according to Stuart Hoffman, chief economist for PNC Financial.  Pending home climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.