The slow pace of new home construction which is exacerbating the tight supply in markets across the US should begin to pick up a new study forecasts
The slow pace of new home construction which is exacerbating the tight supply in markets across the US should begin to pick up a new study forecasts.
The LegalShield Housing Activity Index for July was up almost 4 points, driven by improvements in both its foreclosure and real estate components. The index has gained 1.8% so far in 2017 and is at its highest level since May 2006.
Although challenges for builders has kept housing starts low, with labor shortages and materials costs stalling developments, LegalShield’s forecast is for an uptick in home building as the tight supply of existing homes and rising prices spark new developments.
“The LegalShield Housing Activity Index has a strong record of closely tracking U.S. housing starts over the last 15 years – and the Index continues to suggest that housing starts should be stronger than they currently are,” said James Rosseau, LegalShield’s chief commercial officer.
“The Index is consistent with the fact that U.S. consumers are employed – as underscored by a strong June employment report – with solid credit, manageable debt levels, and heightened confidence about the economy. These factors, combined with historically low home inventories, point to a revival in housing activity,” he added.
The firm’s data also suggests continued low levels of foreclosures and bankruptcies with home sales rising slowly.
The LegalShield Housing Activity Index for July was up almost 4 points, driven by improvements in both its foreclosure and real estate components. The index has gained 1.8% so far in 2017 and is at its highest level since May 2006.
Although challenges for builders has kept housing starts low, with labor shortages and materials costs stalling developments, LegalShield’s forecast is for an uptick in home building as the tight supply of existing homes and rising prices spark new developments.
“The LegalShield Housing Activity Index has a strong record of closely tracking U.S. housing starts over the last 15 years – and the Index continues to suggest that housing starts should be stronger than they currently are,” said James Rosseau, LegalShield’s chief commercial officer.
“The Index is consistent with the fact that U.S. consumers are employed – as underscored by a strong June employment report – with solid credit, manageable debt levels, and heightened confidence about the economy. These factors, combined with historically low home inventories, point to a revival in housing activity,” he added.
The firm’s data also suggests continued low levels of foreclosures and bankruptcies with home sales rising slowly.
