Housing Numbers Offer Reason For Optimism As Economy Reopens

Housing was poised to make a comeback in 2020 but, like everything else following the start of the coronavirus pandemic, home construction plummeted.  With unemployment reaching record highs and consumer spending low, a rebound in housing was not expected to be imminent.  But according to recent data, we might be pleasantly surprised.

The year began with the highest level of housing starts since December 2006, but tumbled moving into April as a result of the shutdowns.  But as states began easing restrictions, housing starts and building permits rose from April to May, yet remained below May 2019 levels.  However, May sales of newly built, single-family homes are 12.7 percent above where they were a year prior.

“We are seeing many positive economic indicators that point to a recovery, including low interest rates, rising demand, and an increase in mortgage applications,” said Dean Mon, immediate past chairman of the National Association of Home Builders.

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