Housing Numbers Beat Expectations, But Confidence Remains Low….

Sept. 21, 2010 - PRLog -- Andover, Massachusetts September 21st, 2010 – The Commerce Department today released housing data for the month of August and contrary to all the doom and gloom scenarios, the housing sector appears to be heading in the same direction as the economy, Up. New home and apartment construction as well as applications for building permits in the future increased last month to the highest levels since April of 2010. Remember, from May to July we saw extremely discouraging economic news as the country appeared to be heading for a double dip recession. This news indicates that the economy has overcome the summer blues and is now heading back in the right direction.

Construction of new homes and apartments rose 10.5% in August compared to July, and while most of the increase came in the smaller apartment sector, any increase at this point is welcome news for current and future homeowners. While builders remain worried about the future of the housing market, this 10.5% increase should signal that consumers are willing to enter the housing market again in larger numbers. The new annual rate is around 600,000 new constructions per year, the highest level since April. Coincidentally, April was also the last month of the federal housing tax credit program which means the housing market is now at a level that was reached only 4 months ago without a tax incentive. The largest increase was seen in the apartment and condo market where an increase of 32% was way beyond estimates. Single family home starts also grew but by a much slower rate of only 4%. While the condo/apartment market only makes up 26% of the entire sector, maybe this is changing. Perhaps people are seeing that single family home ownership is not what it was made out to be before the recession. All the added costs of homeownership including maintenance, property taxes, and utilities might finally be too much for many cash strapped Americans. Keep an eye on this statistic as we may be witnessing a fundamental shift away from single family homes and towards apartments and condos.

Obviously there is still plenty of uncertainty in the housing market.  High unemployment and strict lending standards will continue to limit the housing market for the foreseeable future. However, as the 2% increase in building permit applications in August shows, there is a positive trend to found here. If permits continue to rise we should expect a significantly healthier housing market in 2011. Not only is this good news for the housing and construction industries but it will also be good news for current homeowners who should see their home values continue to rise as the economy improves.

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

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Stephan Tavernini
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Certified IAPDA Debt Arbitrator
Preferred Financial Services
stavernini@pfs1.net

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Preferred Financial Services is the leading voice in the debt settlement industry. PFS has worked with hundreds of creditors to help negotiate realistic goals for those drowning credit card debt.