The Commerce Department today released some positive statistics indicating that builders broke ground last month on new homes at a seasonally adjusted annual rate of pace of 555,000 units, a 3.9 percent rise from October while foreclosures fell to their lowest level in 18 months.
It is projected that home construction would rise from about 590,000 units this year to 675,000 in 2011 while still remaining well below historical levels.
According to RealtyTrac foreclosures fell by 28 percent last month from October largely because several of the big lenders stopped their foreclosure activities as they shorted out allegations of severe problems with legal paperwork.
So far this year there have been more than 980,000 repossessions which is the highest annual tally of properties lost to foreclosure since 2005 when RealtyTrac's began keeping records.
Rick Sharga, a senior vice president at RealtyTrac said, "It's almost impossible to imagine that we won't break a million" for the year. Unfortunately, it's a record that we'll probably break again next year."
All the construction activity last month came from building single-family homes. They increased to a pace of 465,000 units, a 6.9 percent rise from October.
According to the National Association of Home Builders each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes.
Furthermore, nationally homebuilders still remain uncertain about the housing markets near future considering there is still weak job growth and millions of foreclosures still occurring.
NAHB Chairman Bob Jones said, "Builders are anticipating fewer sales in December than most years, mostly because of competition from sharply discounted foreclosed homes, tighter lending standards and poor overall job growth. December is traditionally one of the slowest times for sales."
More than a year after the recession ended, the housing market still remains a struggle.