U.S. HOUSING MARKET STILL GROWING with HOUSING STARTS FALLING SLIGHTLY
The U.S. housing market continues to recover even with a slight dip in housing stars (i.e. new home construction). Due to a strengthening economy and gains in the job market, the housing market has been positively affected and continues to strengthen.
However, in 2014 we saw an overall increase of 19% in housing start ups and as of January 2015 that number has fallen. “U.S. housing starts fell 2% in January from a month earlier to a seasonally adjusted annual rate of 1.065 million,” the Commerce Department said Wednesday, February 18. This dip reflects a decline in new construction of single-family homes. This decrease reflects solely on new construction of single-family homes NOT apartment complexes. Nor does the dip affect the market for already existing homes. Another small dip we noticed in the month of January was in new applications for building permits. It fell .7%, which may be an indication for what construction may look like for the next few months.
The Wall Street Journal (WSJ) published some figures on Wednesday, which delivered the overall statement that the home construction market is precarious and often shifting. Despite slight dips and climbs, home starts have been consistently up in the past year. The WSJ also stated, “Conditions are ripe for a stronger housing market.” The demand for housing is positive and continues to show signs of improvement. Various factors like wages and savings of potential buyers continue to affect the housing market and its different sectors. Overall, the housing market and home sales are looking strong; the home building side of the market is slightly less stable and less predictable.