Builders Step Up Construction Due to Rising Demand

Homebuilders broke ground on homes in March at the fastest pace since June 2008, mostly fueled by a surge in apartment construction, the Commerce Department reports. Housing starts rose 7 percent in March from February, reaching the seasonally adjusted rate of 1.04 million. 

Homebuilders have ramped up production as buyers rush to take advantage of continued housing affordability due to low mortgage rates.

The pace of homebuilding in March was nearly 46 percent higher compared to the same time last year.

Apartment construction led housing starts in March, soaring 31.1 percent, while single-family home construction dropped 4.8 percent. 

The recent data “is a reflection of the solid demand that many areas are seeing for rental apartments as young people take that first step into the housing market, which is a very positive development," says Rick Judson, chairman of the National Association of Home Builders. "The numbers are also in keeping with our latest surveys that show single-family builders are experiencing some difficulties in keeping up with rising demand for new homes due to increasing construction costs and other factors."

Regionally, housing starts dropped 5.8 percent in the Northeast. However, the rest of the country showed strong gains, including a 10.9 percent increase in the South, 9.6 percent gain in the Midwest, and a 2.7 percent rise in the West.

Building permits — a gauge for future home construction — fell 3.9 percent in March, after having reached a five-year high in February.

Source: “U.S. Housing Starts Surpass 1 Million in March,” The Associated Press (April 16, 2013) and the National Association of Home Builders

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About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on April 17, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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