According to data from the U.S. Commerce Department housing starts rose 3.9 percent in December which is the first rise in new-home production since August and as a result builders may start to feel more optimistic about the housing market. That is a 7 percent gain in single-family home building.
Also, according to the National Association of Home Builders increased activity was also seen in all but one area of the nation in November. The West posted a 2.1 percent gain.
David Crowe, NAHB Chief Economist said, "The modest increase in single-family starts and permits in November is consistent with a very low inventory of unsold new homes and our member surveys that have shown a degree of optimism among builders with regard to sales expectations in the next six months. However, builders continue to find it extremely difficult to obtain credit for acquisition, development and construction activities, and this is weighing on their ability to initiate viable new projects that could generate much-needed job growth."
Many lenders remain concerned about extending credit since defaults are so prevalent. Banks continue to keep their lending practices tight which leads to fewer buyers unable to obtain homeownership.
Despite the fact that credit is still difficult for many consumers; thankfully the New York Times is reporting that credit card offers are again on the rise. Even though credit is still tight there is hope on the horizon. It is suggested that right now potential buyers should begin to work on repairing their damaged credit in order to allow them the opportunity to get into the housing market.