The market for newly built homes continues to benefit from the lack of older homes available for sale. Existing home inventory is lower than normal and buyers are increasingly looking at new construction as an alternative. This has been good for the new home market. It’s also led to a spike in construction activity. In fact, according to newly released numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, the number of new homes that began construction in February was 10.7 percent higher than the month before and almost 6 percent higher than last year at the same time. Similarly, the number of new homes completed in February rose almost 20 percent. The news comes at the same time home builders are expressing rising confidence in the market, according to recent survey results – a sign that builders see more gains on the way. (source)
