Will Housing Expand Even After The Tax Credit Expires?

The Mountain Life Team Blogger April 20, 2010

Housing Starts Apr 2008-Mar 2010After a strong March showing and a surprise upward-revision for February, Housing Starts are, once again, trending better.

It’s yet another signal that the housing market in Blairsville, Blue Ridge, Ellijay, Hiawassee and nationwide is stabilized.

A Housing Start is a new home on which construction has started and, over the last 6 months, home builders are averaging one half-million starts per month.

This marks the highest 6-month average since 2008 and a reading one-fifth percent better from 12 months ago.  Revisions to prior data have all been higher, too.

Even more interesting, though, is that the number of newly-issued building permits is exploding. Permits were up more than 5 percent last month and have climbed back to the levels of late-2008.

Housing Starts  here in the North Georgia Mountains are trending upwards as well for most counties.

  • Fannin County – March (12)  April Month To Date (12)
  • Gilmer County – March (12)  April Month To Date  (10)
  • Towns County –  March (10)  April Month To Date  (5)
  • Union County – March  (3)    April Month To Date   (8)

( Numbers were given to me by each County Building Permit Offices on April 20, 2010)

Housing permits are an important data point in housing because permits are precursors to actual housing starts.  According to the Census Bureau, 82% of homes start construction within 60 days of permit-issuance.

Therefore, because March’s housing permits increased, we should expect Housing Starts to continue to rise into the early months of summer.

This, too, reflects well on housing because the federal home buyer tax credit won’t be in existence this summer. The simple fact the homes are being built now shows that housing is likely to expand even after the tax credit expires.

Non-military members must be under contract by April 30, 2010 and closed by June 30, 2010 in order to claim up to $8,000 in federal tax credits.

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