The number of new homes under construction can be a good indicator of housing market health. After all, home builders aren't likely to be building homes if they feel buyer demand is about to plummet. So, if residential construction numbers are on the way up, it's likely a sign that the housing market is too. That's why new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are good news for anyone looking to get into the market in the coming months.
The data, from the most recent New Residential Construction report, shows the number of homes that began construction in March was 2.7 percent higher than the month before. Similarly, permits to build single-family homes rose 4.1 percent. Both are signs that home builders are feeling confident in the market. They are also signs that the inventory of new homes for sale will increase in the months ahead.
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