Breaking ground in December set a new pace in 2012 and is a positive sound for 2013.
Cautiously, I’m optimistic. :)
New construction starts are a HUGE indicator for the economy. Think of it this way… this is creating new homes, not just recycling existing homes. Economist refer to the spending multiplier. You don’t need to be John Maynard Keynes to figure out how this is beneficial. This is definitely evidenced here. For example,
- the lumber yard sells more
- the yard person gets more hours
- he is able to buy more toys for Christmas
- the retail store benefits
- as do the employees
- as do the manufacturers
- as do the suppliers
- and on and on…
According to the National Association of Home Builders:
“Housing starts soared 12.1 percent in December, reaching a 954,000 annual rate and the fastest pace since June 2008, the Commerce Department reported Thursday. Most of the jump was attributed to a 20.3 percent increase in multifamily construction last month, helping the sector return to a nearly normal production pace by historical standards. Housing starts for single-family homes rose 8.1 percent in December.” Reuters 1/17/2013
Housing starts improved because new home inventories are lower. With spring looming around the corner, it’s prudent to get more inventory ready for the spring push.
I’m not doing the chicken dance yet…but my feet are starting to tap a bit…
When you’re ready to move, click here…