A small property supply left homebuyers with fewer options in recent years. This was a result of millions of troubled borrowers with negative equity. To fill this void, construction surged in August.
Last month, housing starts increased 15 percent from August, according to the Department of Housing and Urban Development. This brought the yearly rate to 872,000 properties, the highest since 2006.
Meanwhile, housing permits rose 11.6 percent to a rate of 894,000, the report said. This does not translate directly to homes available to consumers. However, it could indicate they may have more options in the future.
What does this mean for you?
Whether you are a seasoned or first-time homebuyer, homebuilding activity is positive for a number of reasons.
A lack of existing homes pushed prices much higher this year. This made buying a home more expensive. More new homes for sale may yield affordable options.
Homebuilding activity is also closely tied to the national economy. The sector is one of the largest job creators in the country. It also contributes to the nation’s Gross Domestic Product. In layman’s terms, a healthy housing market often produces a stronger economy.
If you are thinking about becoming a homeowner, consider an FHA or VA loan. Depending on your finances, these loans often require smaller down payments. Additional expenses, such as closing and appraisal costs, may also be waived if you meet certain criteria.
Qualifying for a mortgage is just a small part of being a homeowner. Freedom Mortgage can help you take care of your investment – improving your home value through cost-effective fixes or qualifying you for a home improvement loan to help with more significant additions.
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