The number of new housing permits has slowly increased over the last, several months, indicating a possible bounce back of the new home industry in Houston.
Although new home permits are just one indicator of a rebounding market, they are nonetheless a positive sign in an otherwise struggling industry.
Some industry analysts equate the boost in new home permits to the $8,000 new homebuyer tax credit, which is coming to an end in just a couple months. If this is the case, however, then the industry may experience a drop-off once the tax credit expires.
As of August, Houston builders received 2,428 permits for single-family homes, townhomes and condominiums, which is an increase of 7.5 percent from a year earlier.
This is good news for Houston builders who, for the better part of the year, have had to cut their production schedules as credit was harder to come by and buyer demand fell off.
Make no doubt about it; the market is still a strong buyer’s market, and new home developers are offering plenty of concessions and upgrades for those buyers willing to take the leap into building a home.
Numbers are expected to remain better than last year, however, when the hurricane and the financial crisis caused a swift drop-off in new home sales. However, the lack of jobs may play a large part in the overall picture of the new home industry this year. In fact, Houston lost 95,100 jobs just between August 2008 and August 2009, putting a strain on an already-strained economy.
If you are in the market to build or purchase a new Montrose home, consider that there are many buyer incentives and price reductions to be had. Combine that with low interest rates and the new homebuyer tax credit and you may just be in the perfect position to purchase your first Montrose property.
Tags: new homes