US Home Construction Sinks to New Record Low

Staff Writter, Dec 15, 2008

The home building industry has been in a flux, it seems, for ages. You don’t have to be a real estate agent, a property investment specialist or even someone who is looking to buy or build a new home. To know that new construction in the US has sunk to a new low. If you are in the construction industry, there’s no doubt you’ve been feeling pain in the pocket book. Construction workers in particular are experiencing cut backs and layoffs in record numbers because the work just isn’t there.

The housing industry across the nation has not righted itself from the devastating blows it has repeatedly experienced, from the overwhelming number of foreclosures that has taken place. Even though the seven hundred billion dollar bailout unofficially stipulated that banks and financial institutions receiving assistants from the bailout should be offering a moratorium on home owners who are facing foreclosure or are in distressed home owner situations, many banks still have a tight grip on the purse strings.

When you look at the history of new home constructions in the US there is no question that the housing industry has seen better days. In states like California there have been record highs of new constructions when sales were up. Now we’re experiencing a buyer’s market where you can just about name your own price for a new home. If you aren’t a buyer however the pinch is starting to feel like a stab on new construction sales. Housing development corporations are at a virtual standstill as these record lows are bringing new construction projects to a screeching halt.

Many real estate agents are optimistic that president elect Barack Obama represents the start of many changes necessary to the realignment of our nation’s budget, which is directly linked to the possibilities for new housing construction. So while things aren’t looking good at the moment, we can expect them to improve in the future.

Interest rates, financing options, federal reserve adjustments to interest rates and many other factors all play integral roles in the future of new housing construction. If you are waiting on better options you should consider shopping around while you wait there are lots of options out there.