The pace of construction started on new U.S. homes in April jumped 20 percent, which is the highest number seen in over seven years.
According to the Census Bureau, the annual pace of permits for new construction, a sign of future demand, sprang up 10.1%, the highest since 2008.
Both numbers were higher than economists expected.
Although the National Association of Home Builders’ monthly index dropped 2 points to 54 in April, a score over 50 indicates that more builders view conditions as good rather than poor. A year ago, the index was at only 45.
As we have seen in the Denver Metro region, demand exceeds supply. Anyone who is searching for a home right now can help you understand that on a very personal level. As a result, we are seeing extreme competition in the real estate market and rents continue to climb. Homes do not sit on the market for more than a few days. Right now, it is likely less expensive for you to buy a home than it is for you to pay rent.
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