August showed new highs in housing construction which is another sign that the housing market is making a recovery from its biggest slump in decades. Additionally, unemployment aid dropped unexpectedly last week indicating that the recession has either ended or is, at the very least, close to ending.
Despite the housing industry showing signs of recovery there are still many unsold homes and home foreclosures that still hinder a housing industry fast-track back to levels recorded in 2006.
The Commerce Department reported today that multifamily homes and apartment construction rose 1.5 percent to an annual rate of 598,000 units which the highest level since November of last year.
All future construction activity is based on applications for building permits which rose 2.7 percent last month to an annual rate of 579,000 units. Single-family home permits edged slightly lower to 0.2 percent.
Economists feel that the overall housing construction increases are an encouraging sign that the worst of the housing market is over.
The National Association of Home Builders reported this week that with the housing market index rising so far this month it is reflecting a growing optimism in the home building industry with increased home sales.
Homebuilders' Beazer Homes USA Inc. and Hovnanian Enterprises Inc. stocks jumped following the recent report and all have moved higher today up more than 6 percent in morning trading.
Furthermore, homebuilder's financial results have also been better than expected in the latest quarter.