Possible recovery in the Housing Market

One of the main reasons why the economy’s growth has been slow is the downed housing market. However last month, home construction increased sharply 9.3 % from October and was the fasted gain since April 2010. Even though this is positive news, it isn’t a clear sign that the housing market has recovered. Builders should start at least 600,000 by the end of the year, even though it is higher than the #’s started in the past, when a market is healthy, the number of homes started each year is 1.2 million. Another negative is that the pace of apartment construction has increased to about 175,000 for the year, in a healthy housing market, the figure is halved. Finally single-family home construction which is 70% of the housing market has stalled for three years. This years construction of single-family homes was 440,000 which is actually below last year’s 471,000, in a healthy economy, the figure would be 840,000.