Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the increase in home building for the month of June shows a positive sign that the Real Estate market is making a comeback, but the release of "shadow inventory" and the growing number of distressed properties may keep these new homes on the market for a longer period of time.
According to the Commerce Department, builders began work on a seasonally adjusted 629,000 homes last month, up 14.6% from May. Most of the new construction is comprised of apartments, which jumped 31.8%. Single-family home construction rose 9.4%, its biggest increase since June 2009. Commerce also said that building permits - a gauge of future construction - was up 2.5%. Overall, June was the best showing in five months.
"The growing number of new homes being built shows that the housing market may finally be rebounding and hitting bottom," Mr. Moshe said. "A new home being built means the creation of jobs, and the Real Estate market is dependent on the jobs report. However, the numbers are still below from what the economists predicted so we are not out of the woods yet."
Mr. Moshe said the new homes may be on the market for a while as many prospective homebuyers are looking into short sales, foreclosures and distressed properties. "These people are looking to buy a house, but may not be able to afford to purchase a new one," he said. "So, they may look to foreclosures or short sales, in which the current owner may be under the threat of foreclosure and owes more than what his house is worth, or distressed properties at deep discounts. There is also a 'shadow inventory' of houses that have yet to be released by the banks. Once they are put on the block, many homeowners will be attracted by the lower prices of those existing homes while the newer units remain unsold."
Charles Rutenberg Realty is one of the nation's fastest-growing Agencies with more than 1,300 Agents on Long Island, Queens and Westchester. For more information, call (516) 575-7500, or visit www.crrli.com.
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About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation's fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens and Westchester. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients' financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.