This past June showed continued signs that the recession may be waning as new home construction throughout the U.S. rose to their highest level over the past seven months. With November just around the corner builders are rushing to complete the construction of new homes so that first-time buyers to take advantage of the special tax break offered by the Obama administration.
The construction of new homes and apartment complexes rose dramatically to 3.6 percent in June to a seasonally adjusted annual rate of close to 590,000 units, up from May's numbers of 562,000 units.
Economists had predicted that the pace would be around 530,000 units.
June marked the second straight month of new home construction well above the lows reached in April which were only 479,000 units.
Obviously this trend is indicating that homebuyers are being drawn in by lower prices, while at the same time taking advantage of a tax credit of 10 percent of the total purchase price, with a cap of $8,000, which the Obama administration included as part of its federal stimulus package.
June's new construction numbers showed a more than 14 percent increase of single-family home construction marking the largest monthly gain since December 2004.
Further good news supporting a possible end to the recession that's been centered on the housing market is an increase in the numbers of applications for new building permits which rose by almost 9 percent last month.