The number of new homes under construction in the United States rose in June to the highest level in seven months, according to the US Commerce Department. Builders are looking to take advantage of parts of the stimulus package that provide tax breaks for first-time home buyers and the houses must be completed by November.
The latest report from the Commerce Department indicates that construction of new homes and apartments across the country rose by 3.6 percent in June to a seasonally adjusted annual rate of 582,000 units. That is an increase from the previous month’s revised figure of 562,000 units and a significant increase after the record low in April of 479,000 units. When compared to June, 2008, however, housing starts for the month were down 46%.
Buyers have a number of incentives that are helping the market right now, including lower prices and the 10 percent tax credit for first time buyers. “The upcoming expiration of the first-time home buyer tax credit on December 1st is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said National Association of Home Builders (NAHB) Chairman Joe Robson.
The Commerce Department also reported an 8.7 percent increasing in permits for new houses in June, with a seasonally adjusted annual rate of 563,000 units.
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