There has never been a better time to buy Durango CO real estate than now. While a cooldown of home construction occurred slightly in January 2012 after surging in December 2011, builders are starting to see some signs of progress.
According to The Durango Herald, the Commerce Department, builders started work on about 508,000 single-family homes in January. That number represents a one percent drop from December figures, which was revealed to be 513,000 homes. While it was the first decline in the past four months, there was a big rise in apartment construction that helped to offset the decline in single-family homes.
Despite the drop, builders remain optimistic. One good indicator and a gauge of future construction are building permits, which can take up to 12 months to obtain. There has been a recent rise in building permits, particularly for single-family homes, which went up about 0.7 percent. This increase suggests builders are becoming more confident that buyers are ready to purchase.
Chief U.S. economist at High Frequency Economics Ian Shepherdson had this to say about the rise in building permits: “The upturn in permits has been consistent with the surge in the survey of homebuilders, which has surprised the markets to the upside for five consecutive months.” He also added that “The new home sales numbers have not yet responded but builders seem confident that if they build, buyers will come.”
Correspondingly, builder sentiment is now at its highest level in nearly five years. Mortgage rates have never been cheaper, and with home sales on the upsurge at the end of 2011, many builders are seeing more people interested in acquiring a home, leading them to believe that 2012 could be the year when the real estate market does a turnaround when it comes to home sales.