Winter months are often less optimistic when it comes to the real estate market, but builders are reported an increase in business and confidence as the demand for homeownership has outgrown the inventory of existing and delinquent properties. In a recent joint release, data from the U.S. Department of Housing and Urban Development and the Census Bureau revealed building permits, housing starts and completions increased in January on both a monthly and annual basis.
According to the report, authorization for single-family homes rose 1.9 percent from December's seasonally adjusted annual rate of 573,000 to 584,000. When looking at actual starts in the first month of 2013, single-family housing initiations reached an annual rate of 613,000, up 0.8 percent from the month before. Starts for privately-owned housing starts also improved 8.5 percent on a month-over-month basis and grew 23.6 percent from the 720,000 rate recorded in January 2011.
In January, there were 565,000 completions for single-family homes, a 7 percent gain from the previous month when 528,000 constructions were finished.
These figures are only expected to grow, especially when prospective buyers return to the market in the spring and summer months.