New US home starts surge in June (BBC)

[eppur_se_muova]

The construction of new homes in the US rose 3.6% between May and June to the highest level in seven months, official figures have shown.

This is the second month in a row that housing starts have risen following a post-war low in April.

Compared with the same month a year ago, however, June starts were down 46%, the Commerce Department said.

The number of single family homes being built jumped 14.4% in June, the biggest jump in over four years.

'Genuine surprise'

The number of new homes built totalled 582,000, many more than analysts had expected.
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more: http://news.bbc.co.uk/2/hi/business/8156302.stm




Let's hope more of the new houses are not the noxiously ostentatious 'McMansions' but rather energy-efficient houses of modest size. If new buyers make it known that's what they want, *maybe* more builders will build them. Without substantial pressure, builders will build the type of houses that give the greatest profit margins -- and that means more 'upscale' houses.

[Birthmark]

1. So...

...a 3.6% increase in monthly figures against a backdrop of a 46% year-on-year *decrease*...is a "surge."

I do not think that word means what they think it means.

[shraby]

2. Why would new homes be being built when there are

so many empty forclosures??

[northernlights]

3. possible reasons

1. foreclosure properties that have been sitting empty and unmaintained become unliveable.

2. many of them are in emptied out neighborhoods and developments

3. the banks are sitting on something like 2/3s of the foreclosures -- they aren't listed or available

4. according to my realtor, if freddie or fannie is involved, forget it. they don't return calls. only local banks are selling foreclosures and short sales, at least here in maine

5. cash-starved developers are offering great deals on new homes. so you get exactly what you want, brand-spanking new at foreclosure price

[lindisfarne]

4. In many areas, builder choose to build McMansions because it reduces the lawsuit potential.

Builders in Southern Calif. were on record a few years ago saying it's better to build a multi=million dollar home than 10 small homes for this reason.

[CoffeeCat]

5. Why would building a McMansion reduce lawsuit potential?

What kind of lawsuits are we talking about here?

I would think that it would be very difficult to sell a McMansion these days. Most
people are being more conservative with their money, and banks aren't as easily giving
out those huge mortgages to just anyone--as they did in the past.

I don't see the upside to doing this--at all.