Sunday, August 19, 2012

Construction Slowed, But Building Permits Rose

One of the indicators of a turning market is the amount of new construction. It fuels movement in the Real Estate arena. And, if there isn't anything to feed the fire, it just shoots up puffs of smoke. Of course.

So, while the actual construction dropped a tad this past month, the increase in PERMITS is the highest it's been in 4 years. Compared with July 2011, overall permits saw a 29.5% rise. What's that say to you?

If the big dogs, the builders, the contractors, the people with a boat-load of money to invest in housing, feel that it's time to push for more permits, to prep for more home building, then it's just another indicator that we are moving out of the slump.

Interest rates have been creeping up the last few weeks, inventory took a teeny spike (one day this week we actually had 30 more units on our MLS than less), builders are calling out for more permits, and many housing reports are showing optimism.

Although I still believe we have a long way to go before we hit a 'normal' market, there have been several good indicators. I'm going with those. But, really, I don't know if I remember a 'normal' market, do you?

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