Categorized | Residential

Optimism Growing Among Builders in the United States

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Increasing consumer confidence and interest among potential homebuyers has many builders feeling more optimistic about the current state of the housing market. However, many believe that lending standards must be relaxed for true recovery to take place in the United States.

Builders in the United States have been one of the hardest hit groups by the residential real estate crash, as new home sales have hit new record low levels each year since the housing market freefall. Foreclosures have caused housing values to drop to unprecedented levels, causing many new homes to sell for less than the cost it took to build them.

Heightened lending restrictions have made it very difficult for potential homebuyers to secure the financing they need to build or buy a new home, causing more problems for builders.

Although new home sales generally make up a very small amount of total residential real estate transactions, they play an important role in the growth of the housing market and economy as a whole. The building of each new home generates new jobs each year, and provides a substantial amount of tax revenue.

For those builders that have been able to maintain through the difficulties and struggles of the last five years, there is hope that the upcoming year will see a reversal in the overall trend of new home sales, and the housing market in general. With the most recent data indicating that there may be an uptick in new home sales in the coming months, builders are optimistic that the market is finally starting to recover, putting an end to their extended period of financial struggles.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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