RealEstateInvestor.com Reacts to Housing Construction Increase

The Commerce Department has reported that construction of new homes shot up in May -- the largest increase in three months. This is an encouraging sign that our nation's dry spell in the housing market is coming to an end.

San Diego, CA (PRWEB) June 24, 2009 -- The Commerce Department has reported that construction of new homes shot up in May--the largest increase in three months. This is an encouraging sign that our nation's dry spell in the housing market could be coming to an end.

According to the Commerce Department, construction of new homes and apartments rose by 17.2 percent in May to an adjusted annual rate of 532,000 units. This increase was far better than the 500,000-unit projection that economists anticipated and came after construction slowed down to a record low of 454,000 units in April.

Another sign of encouragement: applications for building permits jumped 4 percent in May to an annual rate of 518,000 units.
These unexpected rebounds in construction are signs that the housing slump is steadily coming to an end which would mean good news for our entire economy because a healthy home market is a critical key to bring about an economic recovery.

Last week, President Obama spoke about the government's plan to regulate the questionable lending practices that helped to create the worst crisis in the nation's financial system since the Great Depression.

Some analysts, however, don't believe the signs. They point to the still weakened economy which continues to let go of workers and the hesitation people have about committing to buy a new home. Due to the steady interest in the large number of foreclosures and other distressed properties, builders are often unable to compete.

In May, construction increased nationwide led by a 28.6 percent surge in the West, a 6.8 percent in the South, an 11.1 percent increase in the Midwest and only a 2 percent increase in the Northeast.

CEO of RealEstateInvestor.com (REI), Colin Egbert feels that this recent report is truly significant and encouraging. "It's a sign that our economy is getting back on the right track. This news provides an opportunity for knowledgeable investors to capitalize on the changing tide. Through proper education and networking, savvy investors are already getting back in the game," Egbert says.

Contact:
Colin Egbert
800.865.7025

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