Housing starts increased by 20 percent nationwide in April, reaching a seasonally adjusted annual rate of 1.135 million, according to the Census Bureau. This is the highest that figure has been in seven years. New home construction rises with demand, and although this growth doesn’t necessarily indicate a boom, we have a strong foundation for the future.
Also on the rise were building permits for housing units, which increased 10 percent to the seasonally adjusted annual rate of 1.143 million.
These increases were better than what economists expected, which means a lot, considering how prevalent misplaced optimism can be. Meanwhile, the National Association of Home Builders’ (NAHB) monthly index indicated a slight decline in home builders’ confidence. Their index fell from 56 to 54. A number above 50 indicates that more home builders are confident than those who aren’t. The index was at 45 this time last year, so we’ve come a long way. Despite the two point drop that we’ve just seen, sales expectations for the next six months increased.
According to NAHB Chief Economist David Crowe, many home buyers are still cautious about their financial stability in terms of buying real estate. On the plus side, mortgage rates are still low.
If you’re in the market for West Maui real estate, and you have questions regarding real estate investments or Maui-specific trends, you’ll find our contact information at the bottom of the page. We look forward to assisting you in finding the right property for your unique needs. Mahalo!