November New-home Construction Rebounds

November’s new-home construction rebounded from a 6-month low, a sign that the housing recovery is continuing. According to the Commerce Department, applications for building permits rose 6% and construction of new homes and apartments increased 8.9%.

David Crowe, chief economist at National Association of Homebuilders, noted that  builders are still feeling rather cautious, but he has hope for the future. “We’re in a bit of a lull, but the new (extended) credit will have an impact as we move into 2010 and consumers plan for that credit availability, and builders begin to answer expected demand in the spring.”

Many builders are indeed ready to increase new-home inventory in preparation for the spring market, but are encountering difficulty getting production credit from the banks. This obstacle could slow the current momentum toward market stabilization of new-home supply and demand.

For more information, visit cnnmoney.com or read the official Department of Commerce release.