Nobody borrowing money for new houses

Even though it seems odd, more new houses are being built still. Everybody wants to hear the great news from the economy. It is especially true when it comes to real estate. However, the number of individuals asking for cash for new homes is stagnant. Finance loans for new mortgages and homes are dropping while applications for loan modification are going up. New home starts are one of only a couple of economic indicators that improved over the summer.

Home starts reach four month high

Construction on new homes is higher than it has been in four months. CNN reports that a climb of 598,000 per year increase happened in the month of August for brand new home starts. The increase was of 10.5 percent. The bulk of the increase, though, was not in single family homes. New single family home stats went up less than that. It was about 4.3 percent instead. The rate ended up being changed. It went to 438,000 a year. Single family homes are the engine that drives real estate. However, without people feeling secure that a lot more pay days are coming, it is difficult to justify getting financial institution loans for a new home.

More permits granted

To build, developers have to make sure they get one things. This means they need permits. Permits are needed for more than just commercial construction. They also are required for brand new homes. In August there was an increase in permits. 1.8 percent was this increase. The rate continuing would mean a lot of permits of course by the end of the year. In fact, 169,000 permits would be given. August had one area where the majority of the homes fell under. These were all multi-family homes. Multi-family houses on their own went up about 32 percent. However, starts for buildings designed for multiple families are a regularly wavering statistic, so do not expect to see apartment complexes break out like a virus.

Look at the bright side

Real estate has been a significant factor in the economy. In fact, the economy thrives off of real estate. Improvement and recovery is beginning to occur. Within the last year, a 2.2 percent increase was marked in August.

Further reading

CNN Money

money.cnn.com/2010/09/21/news/economy/housing_starts/index.htm